EPFO: If you work, then PF money is deducted from your salary every month. This money is for your savings and it is handled by EPFO i.e. Employees Provident Fund Organization. PF account not only saves, but in the future you can also get pension from it. But there are some rules for this
EPFO: If you work, then PF money is deducted from your salary every month. This money is for your savings and it is handled by EPFO i.e. Employees Provident Fund Organization. PF account not only saves, but in the future you can also get pension from it. But there are some rules for this. If you accidentally withdraw the entire PF money, then you may not get the benefit of pension. Therefore, it is very important to know what are the rules related to PF and pension and what things you should keep in mind.
How much money goes into PF?
Every month 12% of your basic salary is deposited in the PF account, and the company also gives the same amount as contribution. Out of this 12% of the company, 8.33% goes to EPS and the remaining 3.67% is deposited in your EPF account.
Why don’t you get pension?
If you contribute to EPF continuously for 10 years, you become eligible for pension after the age of 50, but only if you have not withdrawn the EPS fund. Often people withdraw all the money from their PF account after leaving the job – and in the same time they also withdraw part of the EPS. If you withdraw the EPS money as well, you will not get the benefit of pension.
Do not withdraw EPS funds
Therefore, it is important that while withdrawing money from the PF account when needed, do not withdraw money from the EPS fund. By keeping the EPS fund intact, you can claim pension later.
Right time to claim pension
According to EPFO rules, if an employee contributes to EPF for 10 years or more and does not withdraw EPS funds, he can claim pension after the age of 50 years.
Facility increased due to new rule
EPFO has started a new facility from January 1, 2025, under which now subscribers can withdraw pension amount from any bank. Earlier this facility was available only through a designated bank. Now the pension process has become easier through digital verification. Especially for those who have returned to their villages or other cities after the job. Therefore, if you want to get pension under EPFO, then it is very important to understand and follow the conditions related to EPS.
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