The money going into EPS is given to the employee as pension every month after his retirement. To be eligible for EPS, the employee has to continue contributing for at least 10 years.
The Employees Provident Fund Organization (EPFO) is a government organization that works for the interests of employees under the Ministry of Labor. EPFO launched EPS 95 i.e. Employee Pension Scheme 95 for people doing private jobs in the year 1995. Under this scheme, both the employee and his company contribute. While on one hand the entire 12 percent of the employee’s share goes to the Provident Fund, on the other hand, out of 12 percent of the company’s money, 3.67% goes to the employee’s Provident Fund and 8.33% goes to EPS.
It is necessary to work for 10 years to be eligible for EPS
The money going into EPS is given to the employee as pension every month after his retirement. To be eligible for EPS, the employee has to continue contributing for at least 10 years. When an employee completes 10 years of service, he becomes eligible for EPS. Under EPS, employees get a minimum pension of Rs 1000 and a maximum of Rs 7500 every month on completion of 58 years of age. But here we will know whether pension can be received before the age of 58.
Also Read- EPFO salary limit to be amended soon! Private sector employees can get monthly pension up to Rs 10,050, know update….
What is the eligibility to get pension before the age of 58
According to the rules of EPFO, if you contribute to EPS while working for 10 years and your age is more than 50 and less than 58, then you can get pension even earlier. But here you have to keep one thing in mind that if you receive pension before the age of 58, then the amount of pension you get every month will be reduced by 4 percent. Moreover, if you take pension after the age of 60, you get the entire money, which grows at the rate of 4 per cent every year.
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