Employees Provident Fund Organisation (EPFO) under the Ministry of Labour runs PF and pension schemes for companies and employees working in the organized sector. For PF, employees deposit some part of their salary every month and the same company also deposits. Part of the share that the company deposits in PF also goes to the Imploi Pension Scheme (EPS). Through this, the employees get pension after retirement. The EPS benefits not only the employee but also his family. If the EPF member dies for some reason, his family, wife or husband and children also get the benefit of pension. It is also called family pension.
When to get pension
To take advantage of pension, the employee needs to work for 10 years continuously. This pension scheme contributes only to the company. This is 8.33 per cent of the company’s 12 per cent contribution to PF. The government also contributes to pension, which does not exceed 1.16 per cent of the basic salary. The EPF member is entitled to pension even if he is fully disabled in addition to retirement. EPF must have 10 years of service for family pension. The employee is entitled to pension only when he is employed for 10 years. It is treated as a family pension.
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Who gets family pension..
1. After the death of a member of the EPS scheme, his wife or husband gets pension.
2. If the employee has children, 2 children also get pension till the age of 25 years.
3 If the employee is not married, his nominee gets pension.
4 If there is no nominee. After the death of the employee, his parents are entitled to pension.
