EPFO News Alert: Many families faced financial crisis due to Corona pandemic. Many people lost their loved ones during this time.
Such elderly parents who have lost their employed sons and daughters in this epidemic will get lifelong pension through EPFO. There are also some terms and conditions of this pension assistance scheme. Let us know when a person gets pension through this scheme.
The pension scheme of EPFO was started in 1995. As per the existing Employees Provident Fund rules, if a person dies who is the sole breadwinner in the family and their parents are also of age. In such a situation, if there is no other family member to take care of the old parents, then they get lifelong pension under the EPS-95 rule. Another rule in this help is that the employee should have worked for at least 10 years.
Also, if the employee gets any such disease during the job due to which he becomes physically disabled, then the employee will also get lifelong pension. Even if the prescribed service period is not completed.
How much do EPFO employees and employers contribute?
The eligible employee has to contribute 12% by adding his basic salary and dearness allowance. At the same time, the employer has to contribute the same amount. At the time of retirement, the investor gets the entire money back along with interest. Suresh, Founder, Ladder7 says, “12% of the work done by the employee goes into the EPF account.
At the same time, out of 12% of the employer, 3.67% goes to the EPF account and the remaining 8.33% to the EPS (Employee Pension Scheme) account. If you contribute more than 12% to EPF, it gets converted into VPF. In such a situation it is not necessary to match the employer’s contribution again.
Contributions of less than 12% are also recognized in certain circumstances. For example, if the number of employees in the company is less than 20, then in such a situation the employee and employer can contribute up to 10%-10% percentage. This is so that people invest more and more in EPF.
