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EPFO Pension Rules: If an employee takes pension at the age of 59 years, he is given pension at an additional rate of 4 percent, whereas at the age of 60 years, he is given pension at an additional rate of 8 percent.
EPFO or Employees Provident Fund Organization gives pension to its members after retirement. The pension amount depends on the contributions of the employee and the employer.
epfo pension age
Usually this pension is received after retirement at the age of 58 years. However, the subscriber can also apply for premature pension under certain conditions.
epfo pension rules
EPFO member must contribute for at least 10 years.
How to get maximum pension from EPFO
To get the maximum pension, you will have to keep your pension till the age of 60 instead of 58. In such a situation, the employee gets pension at an additional rate of 4 percent every year.
Pension at the age of 59
If an employee takes pension at the age of 59 years, he is given pension at an additional rate of 4 percent, whereas at the age of 60 years, he is given pension at an additional rate of 8 percent. Pensionable service and salary for years after 58 years is also taken into account to calculate their pension.
Early pension between 50-58 years
You can claim early pension only if your age is between 50 years to 58 years. But in this you get less pension. The sooner you withdraw your money before the age of 58, your pension will reduce by 4 percent every year.
understand with an example
Suppose an EPFO member decides to withdraw the reduced monthly pension at the age of 56 years, he will get 92% of the basic pension amount (100% – 2×4) i.e. he will get 8% less pension. To avail the benefit of early pension, you have to fill the composite claim form and select the options of early pension and 10D form.
What happens if you withdraw pension before the age of 50?
If you have completed 10 years of service and your age is less than 50 years, then you cannot claim pension. In such a situation, after leaving the job, you will get only the amount deposited in EPF. Pension will be available from the age of 58 years.
Options if your service period is less than 10 years
If your service period is less than 10 years then you have two options. First- If you do not want to do a job, then you can withdraw the pension amount along with the PF amount.
second option
The second option is that if you think that you will join the job again in the future, then you can take a pension scheme certificate. In such a situation, whenever you join a new job, you can link your previous pension account to the new job through this certificate. With this, the shortfall in 10 years of service can be compensated in the next job and one can become eligible for pension at the age of 58 years.