Employee Pension Scheme: In the event of the death of the employee, his parents are entitled to pension for life. This rule is of EPFO, but most people do not know it.
Employee Pension Scheme:
Due to the epidemic corona, many families had to face financial crisis. This epidemic caught many people in its grip. There are many families where now only elderly parents are left. But, EPFO stands with such elders on losing any of their employed son or daughter. According to the rules of EPFO, such parents will get lifelong pension. There are certain terms and conditions of the pension scheme.
What is the condition of pension?
The Pension Scheme (EPS) of EPFO was started in 1995. According to the EPFO, if a person dies while on the job, who is the sole breadwinner in the family and his parents are dependent, then in such cases he gets lifelong pension under the EPS-95 rule. However, the condition in this is that at least 10 years of service of the applicant has been completed. Also, if the employee becomes physically disabled due to any disease during the job, then the employee will also continue to get pension for life. Even if he has not completed the tenure of the job (10 years) as per the conditions.
How much has to be deposited in PF account?
12 percent of the basic salary and dearness allowance of the employee is deposited in the Provident Fund account. The same part is also deposited on behalf of the company (employer) of the employee. On retirement, the employee gets the entire amount of the fund by charging interest. 12 percent of the employee’s share is deposited directly into the EPF account. At the same time, out of 12 percent of the employer, 3.67% is deposited in EPF and the remaining 8.33% in EPS (Employee Pension Scheme).
