Employees Provident Fund Organization pays pension to its subscribers. How much money the subscriber will get depends on the contribution and age of the subscriber. The Employees Provident Fund Organization then starts paying the pension. When a subscriber completes 58 years of age and has contributed to the Employees’ Provident Fund Organization for 10 years.
Employees Provident Fund Organization will get it as pension
But if an employee takes pension from the Employees Provident Fund Organization at the age of 60, then he gets more pension. If you start taking pension at 60 years instead of 58, then you will get more than 8 percent of the normal pension amount as Employees Provident Fund Organization pension.
Employees Pension Scheme: The pension scheme run by the Employees Provident Fund Organization, every month 12 percent of the basic salary + DA of the employees is deposited in the PF account. The employer’s contribution is also the same, out of which 8.33 percent goes to the employee’s pension fund. And the remaining 3.67 percent amount goes into the PF account.
Employees Provident Fund Organization explained in a post about the rules related to pension. As per the rules of Employees Provident Fund Organisation, any employee who contributes to EPFO and has completed 10 years of service is eligible to receive pension. If the total period of service is less than 10 years, the amount deposited for pension can be withdrawn anytime in between. Employees who have completed 10 years or more of service. By this, pension is given after retirement i.e. at the age of 18 years. They are given pension by EPFO after retirement i.e. at the age of 58 years.
Why will you get more pension?
EPFO allows subscribers to avail higher pension at the age of 60 years to encourage them to contribute more. Subscribers can deposit money in the Employees Provident Fund Organization pension fund till the age of 60 years. EPFO subscriber can get pension even after turning 50 and contributing for 10 years.
You will get less pension in EPFO
If you have completed your 10 years of service. And your age is between 50 to 58 years. Only then can you claim for early pension. But in this you get less pension. The earliest you can withdraw money is from the age of 58.
The less your Employees’ Provident Fund Organization pension will be. Suppose at the rate of 4% every year if an Employees Provident Fund Organization employee withdraws monthly pension at the age of 56 years. So he will get only 92% of the basic pension amount.
