EPFO: How much pension will PF account holders get after 10 years of service, know the rules of EPFO..

EPFO Private sector professionals save from their earnings and invest it in investments that can give them good returns. In this context, a PF account is a great option. It not only provides great returns but also ensures financial security after retirement, thereby eliminating the worry of pension. Yes, PF account holders are given the benefit of pension under EPS-95. However, there are some conditions for this. Let us know its complete process...

If you work for 10 years, then your pension is confirmed-

EPS (Employee Pension Scheme) is a pension scheme, which is run by EPFO. This scheme is for existing and new EPF members. Under this, any employee who completes 10 years of service can avail pension. This scheme helps in securing the future of employees so that they can get financial security after retirement.

It is managed by EPFO-
Employees Pension Scheme 1995 (EPS-95) was launched by EPFO on 19 November 1995, which is a social security initiative aimed at meeting the retirement needs of employees in the organized sector. It is managed by EPFO and this scheme guarantees pension benefits to eligible employees who reach the age of 58 years. If we look at the rules, 9 years and 6 months of service is also counted as 10 years. But if the time of employment is less than 9 and a half years, then it will be counted as 9 years only. In such a situation, employees can withdraw the amount deposited in the Pension Account even before the age of retirement. Because they are not entitled to a pension.

This is the calculation of the PF deduction-

A large part of the salary of people working in the private sector is deducted as PF, which is deposited in the employee's PF account every month. If you work in a private job for 10 years, then you become eligible to get a pension. According to the rules, 12 percent of the employee's basic salary + DA is deposited in the PF account every month. Out of which the employee's entire share goes to EPF, while the employer's 8.33 percent goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.

What will happen if there is a gap in the job?

As told pension is confirmed only after working for 10 years, so now the question arises that if the employee has worked in two different institutions for 5-5 years, then what will happen? Or if there was a gap of two years between the two jobs, would that employee be entitled to a pension or not?

If we look at the rules, despite the gap in the job, one gets the benefit of a pension even after completing a tenure of 10 years by combining the entire job. But, here the employee mustn't change his UAN number in every job, the old UAN number will have to be continued. That is, a total tenure of 10 years should be completed on a single UAN. Even after changing the job, if the UAN remains the same the entire money deposited in the PF account will be visible in the same UAN.

So many types of pension under EPS-
EPS-95 pension scheme provides various types of pension to the family members of pensioners, such as widow pension, child pension, and orphan pension. If the widow marries again after the death of the employee, then the children start getting a pension. If the member starts pension from the age of 60, then he gets the benefit of an additional increase of four percent annually. Moreover, if an employee becomes disabled, he is eligible to receive a monthly pension even if he has not completed the service years.

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