EPFO: Any government or private employee has a PF account. Crores of employees in India are associated with EPFO. 12% of the employee’s basic salary is deposited in the PF account. The company deposits the same amount. You can also get pension from this. However, some rules have been made for this.
EPFO: All the employed people in India have PF accounts. In India, PF accounts are operated by the Employee Provident Funds Organization i.e. EPFO. These accounts are also seen as a kind of savings scheme. Every month 12 percent of the employee’s basic salary is deposited in the PF account. The company deposits the same amount. You can also get pension from this. Some rules have been made for this. It is very important to follow them.
You can use the money deposited in the PF account whenever you need it. Along with this, you get pension if you contribute to EPFO for more than 10 years. Meanwhile, if you withdraw more money than a fixed limit, you will not get pension. Let us know what are the rules of EPFO regarding pension.
Pension is not available if the entire amount is withdrawn from the account
Both the employee and the company contribute to the PF account. 12 percent of the employee’s salary goes into the PF account and the company also contributes 12 percent to the employee’s PF account. Out of the company’s 12 percent contribution, 8.33 percent goes directly to the EPS Fund (Employee Pension Scheme Fund). The remaining 3.67 percent goes to the PF account.
If an employee contributed to the PF account for 10 years and later left the job, then to avail the pension, the employee has to keep his EPS fund active. If the employee withdraws the entire amount present in his PF account if needed but his EPS fund remains intact, then he will get pension. On the other hand, if he withdraws the entire amount of his EPS fund, then he will not get pension. In such a situation, it is very important to understand that money should not be withdrawn from EPS fund to avail the pension.
When to claim pension?
According to the rules set by EPFO , employees who contribute continuously to their PF account for 10 years can claim pension after the age of 50 years. Provided that he has not withdrawn his EPS fund. Let us tell you that EPFO subscribers can withdraw their pension amount from any bank. This new facility has come into effect from January 1, 2025.
Earlier, subscribers had to get pension from a particular bank only. After the implementation of this facility, those people will benefit a lot, who were in another city during the job and have now returned to their home. Along with this, now they will not need to wander for pension verification. This process will become easier through digital medium.
Most Read Articles:
- IMD Rain Alert: Big news! Very heavy rains in 15 states from 18 to 22 July, high alert issued
- PM Kisan 20th Installment: 20th installment is coming, know which farmers will not get the benefit
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
