EPFO Pension: If you take pension at the age of 60 instead of 58, you will get more money, know why?
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EPFO Pension Rules- EPS is a pension scheme run by EPFO. (*60*) month, 12 p.c of the worker’s primary wage + DA is deposited in the PF account.
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Employees’ Provident Fund Organization (EPFO) gives pension to its shareholders. The quantity of pension a shareholder will obtain depends upon the contribution and age of the shareholder. EPFO begins giving pension when a subscriber completes 58 years of age and has contributed to EPFO for 10 years. But, if a subscriber takes pension from EPFO at the age of 60 years instead of 58 years, then he will get more pension. If you begin taking pension at the age of 60 instead of 58, then you will get 8 p.c more cash as pension than the regular pension quantity.
EPS is a pension scheme run by EPFO. (*60*) month, 12 p.c of the worker’s primary wage + DA is deposited in the PF account. The employer’s contribution can be the similar. Out of this, 8.33% quantity goes to the worker’s pension fund (EPS Fund) and solely the remaining 3.67% quantity goes to the PF account. EPFO has defined about the guidelines associated to pension in an X publish.
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— EPFO (@socialepfo) April 5, 2024
According to EPFO guidelines, any worker who contributes to EPFO and has accomplished 10 years of service, turns into eligible to obtain pension. If the whole interval of employment is lower than 10 years, then the quantity deposited for pension might be withdrawn anytime in between. Employees who’ve accomplished service interval of 10 years or more are given pension from EPFO after retirement i.e. from the age of 58.
Why is larger pension given?
EPFO gives the facility to take larger pension at the age of 60 to encourage the subscribers to contribute more. Shareholders can deposit cash in EPFO pension fund until the age of 60 years. EPFO subscriber can get pension even after turning 50 years of age and contributing for 10 years.
You will get much less pension.
If your 10 years of service interval has been accomplished and your age is between 50 years to 58 years, then solely you can declare for early pension. But on this you get much less pension. The earlier you withdraw the cash earlier than the age of 58, the pension you will get will be diminished by 4 p.c for yearly. Suppose an individual withdraws month-to-month pension at the age of 56, then he will get solely 92 p.c (100% – 2×4) of the primary pension quantity.
If you are under 50 years of age,
if you have accomplished 10 years of service and your age is under 50 years, then you can’t declare pension. In such a state of affairs, after leaving the job, you will get solely the funds deposited in EPF. Pension will be out there from the age of 58 years.
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