EPFO Pension: There is also a way to get pension from EPFO, through which you can get up to 8% more pension. Many people are not aware of this. Know about it here-
EPFO Pension: Any employee who contributes to EPFO for 10 consecutive years becomes eligible to get pension. This pension is available at the age of 58 years. Pension is calculated on a pro rata basis on the pensionable service of the member i.e. the number of years he has contributed to the pension fund and the average salary of 60 months before retirement.
If an employee wants to take pension before 58 years, he can also claim it. EPFO allows the employee to take pension between 50 and 58 years. For this, there is an option of Early Pension. But in such a case, you are given pension at a reduced rate. At the same time, there is also a way through which you can get up to 8% more pension from EPFO. Many people are not aware of this. Know about it here-
This is the way to get pension increased by 8%
According to the rules of EPFO, pension is usually given on completion of 58 years, but if the employee is still in job after 58 years, then he can stop his pension for two more years i.e. till the age of 60 and can continue his contribution to the pension fund till the age of 60. In such a situation, the employee gets pension at an additional rate of 4% every year. In such a situation, if the employee takes pension at the age of 59, then he is given pension at an additional rate of 4%, while at the age of 60 he is given pension at an additional rate of 8%. In such a situation, the service and salary of the pension of the years after 58 years is also taken to calculate their pension.
Know the rules of Early Pension too
If your age is between 50 years to 58 years, then only you can claim for Early Pension. But in this you get less pension. The earlier you withdraw the money from the age of 58, the lesser will be your pension at the rate of 4% for each year. Suppose an EPFO member decides to withdraw the reduced monthly pension at the age of 56, then he will get 92% (100% – 2×4) of the basic pension amount. To get Early Pension, you have to fill the Composite Claim Form and select the option of Form and 10D for Early pension.
If you are under 50 years of age
If you have completed 10 years of service and your age is less than 50 years, then you cannot claim for pension. In such a situation, after leaving the job, you will only get the fund deposited in EPF. Pension will be available from the age of 58.
If you have less than 10 years of job
If your job period is less than 10 years, then you are not entitled to pension. In such a situation, you have two options. First- If you do not want to work, then you can withdraw the pension amount along with the PF amount. The second option is that if you think that you will join the job again in the future, then you can take a pension scheme certificate. In such a situation, whenever you join a new job, you can link the previous pension account to the new job through this certificate. With this, whatever is lacking in the 10-year period of the job, you can complete it in the next job and become eligible to get pension at the age of 58.
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