Top News

EPFO Pension Rules: Whether you are employed in a government or a private organization, a certain amount of contribution to EPF will be deducted from your salary every month. Individuals who contribute continuously for 10 years are eligible to receive a pension from EPFO ​​after retirement. But generally, this pension is received from EPFO ​​after retirement at the age of 58 years. This pension is calculated based on the pension service of the member. But you can take a pension before or after 58 years. An early pension option is available for this. Let's know the rules related to EPFO ​​Pension.

This is the initial pension rule:

You can claim for early pension only if the employees are between 50 years to 58 years for pension. But in this, you will get less pension. The sooner you withdraw your money before age 58, the earlier you apply and your pension will be reduced by 4% each year. When an EPFO ​​member is supposed to get a pension at the age of 56, two years earlier, the amount of pension you get will be reduced by 8 per cent. Then the employee will get 92% (100 percent - 8 percent) of his basic pension amount. To claim an early pension, you need to fill out a composite claim form. Form 10D option should be selected for the initial pension.

At the age of 60 will get an increased pension :
If the employee remains in service beyond the age of 58, he can defer his pension for another two years, i.e. till the age of 60. One can continue his contribution to the pension fund till the age of 60 years. In such a situation, the employee gets a higher pension. As per the rules, after attaining the age of 58 years, the pension will be increased by 4% every year. In such a situation, if an employee retires at the age of 59 years, he can get an additional 4 per cent pension. But at the age of 60, he gets a pension at an additional rate of 8%.
If your employment period is less than 10 years, after which you have not made any contribution to EPFO, you are not eligible for pension. In such a situation you have two options. First- If you don't want to work, you can withdraw the PF amount as well as the pension amount.

The second option is to take a pension scheme certificate if you intend to re-enter the job in the future. Whenever you join a new job, you can link your previous pension account to the new job through this certificate. With this, the employment gap of 10 years can be covered in the next job, to be eligible for a pension at the age of 58.