look news india
New Delhi. Employees' Provident Fund Organization (EPFO) provides pension to its subscribers. The amount of pension a shareholder receives depends on the contribution and age of the shareholder. EPFO starts paying pension when the subscriber completes the age of 58 years and contributes to EPFO for 10 years. But, if a customer takes pension from EPFO at the age of 60 instead of 58 years, then he gets more pension. If you start taking pension at the age of 60 instead of 58, then you will get 8 percent more money as pension than the normal pension amount.
EPS is a pension scheme run by EPFO. Every month, 12 percent of the employee's basic salary + DA is deposited in the PF account. The employer's contribution is also the same. Out of this, 8.33% amount goes to the employee's pension fund (EPS fund) and the remaining 3.67% amount goes to the PF account. EPFO has explained about the rules related to pension in an ex-post.
According to EPFO rules, any employee who contributes to EPFO and has completed 10 years of service becomes eligible to receive pension. If the total period of employment is less than 10 years, the amount deposited for pension can be withdrawn anytime in between. Employees who have completed service period of 10 years or more are given pension from EPFO after retirement i.e. from the age of 58 years.
Why is more pension given?
EPFO allows subscribers to avail higher pension at the age of 60 to encourage them to contribute more. Subscribers can deposit money in EPFO pension fund till the age of 60 years. EPFO subscribers can get pension even after turning 50 years of age and contributing for 10 years.
will get less pension
You can claim early pension only when you have completed 10 years of service and 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, the pension you receive will be reduced by 4 percent every year. Suppose a person withdraws monthly pension at the age of 56, he will get only 92 percent (100% – 2×4) of the basic pension amount.
being under 50 years of age
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.