EPFO Pension Scheme: According to EPFO, if you have contributed to the PF account for 10 years, then you are entitled to get pension. According to the current rules of EPFO, the maximum limit of pensionable salary is Rs 15,000. This means that every month Rs 15,000 x 8.33/100 = Rs 1,250 can be deposited in your pension fund.
EPFO Pension Scheme: If you work and have a PF account, then this question must have come to your mind that how much pension will you get after retirement. Especially the retirement age is up to 60 years, so you have to know what the rules of the Employees Provident Fund Organization (EPFO) say at the time of retirement and how it is calculated.
How is money deposited in the PF account
If you work in the private sector, then 12 percent of your salary goes to your PF account. Your company also contributes the same amount. But only 8.33 percent of it is deposited in the pension fund and the remaining 3.67 percent in PF.
What do the pension rules say?
According to EPFO, if you have contributed to the PF account for 10 years, then you are entitled to get pension. You can claim pension at the age of 50, but 4 percent will be deducted every year. On the other hand, if you wait till the age of 58, then you get full pension. After 58 years, if you do not claim pension and postpone it till 60 years, then there will be an increase of 4 percent every year, that is, at the age of 60, you will get more than 8 percent pension.
Formula for pension calculation
According to the current rules of EPFO, the maximum limit of pensionable salary is Rs 15,000. This means that every month 15,000 x 8.33/100 = 1,250 rupees can be deposited in your pension fund. When the pension is calculated, it is calculated using this formula. Pensionable salary x pensionable service / 70 = monthly pension Now the question is how much pension will you get at the age of 60.
How much pension will you get at the age of 60?
If you start working at the age of 23 and retire at the age of 58, then you have worked for a total of 35 years. In this situation, pensionable salary = Rs 15,000, service period = 35 years, then the pension will be 15,000 x 35 / 70 = Rs 7,500 per month. On the other hand, if you claim pension at the age of 60, then there will be an additional increase of up to 8 percent on it. But the calculation of PF pension is based on your average salary of last 60 months.
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