Pension Under EPS-95: A part of the salary of people working in the private sector is deducted in PF, which is deposited in their PF account every month. However, there are some conditions which those who fulfill are entitled to pension.
Almost every professional working in the private sector saves some of his earnings and invests it in a place where he gets great returns, which does not let him face financial problems after retirement. In this regard, PF accounts are a great option, in this not only do you get great returns, but your pension tension also ends. Yes, PF account holders are given the benefit of pension under EPS-95. However, there are some conditions for this. Let’s know its complete process…
If you work for 10 years, then pension is sure
First of all, it is important to know what is EPS? Often people get confused about EPS. So let us tell you that this is a pension scheme, which is managed by EPFO. Existing and new EPF members are included under this scheme. There is only one condition to take advantage of this scheme, which the employee has to fulfill. According to the rules of EPFO, any employee becomes entitled to get pension after working for 10 years.
It is managed by EPFO
The Employees’ Pension Scheme 1995 (EPS-95) was started by EPFO ​​on 19 November 1995, which is a social security initiative aimed at meeting the retirement needs of employees in the organized sector. It is managed by EPFO ​​and this scheme guarantees pension benefits to eligible employees who reach the age of 58 years. If we look at the rules, then 9 years 6 months of service is also counted as 10 years. But if the duration of the job is less than 9 and a half years, then it will be counted as 9 years only. In such a situation, the employee can withdraw the amount deposited in the Pension Account even before the age of retirement. Because they are not entitled to pension.
This is the calculation of PF deduction
Actually, a large part of the salary of people working in the private sector is deducted as PF, which is deposited in the employee’s PF account every month. If you work in a private job for 10 years, then you become eligible to get pension. According to the rule, 12 percent of the employee’s basic salary + DA is deposited in the PF account every month. Out of which the employee’s entire share goes to EPF, while 8.33% of the employer’s share goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.
Also Read- EPFO salary limit to be amended soon! Private sector employees can get monthly pension up to Rs 10,050, know update….
What will happen if there is a gap in the job?
As it was told that pension is confirmed only after 10 years of job, so now the question arises that what will happen if the employee has worked in two different institutions for 5-5 years? Or if there was a gap of two years between the two jobs, will that employee be entitled to pension or not? If we look at the rules, then despite the gap in the job, one gets the benefit of pension even after completing the tenure of 10 years by combining the entire job. But, here it is important that the employee does not change his UAN number in every job, the old UAN number will have to be continued. That is, the total tenure of 10 years should be completed on a single UAN. Because even after changing the job, the UAN remains the same and the entire money deposited in the PF account will be visible in the same UAN.
So many types of pension under EPS
EPS-95 pension scheme provides many types of pension to provide assistance to the family members of the pensioner, it includes widow pension, child pension and pension for orphans. On the death of an employee, if the widowed spouse remarries, the pension benefits start being given to the children. If the EPF member wants to start his pension from the age of 60 instead of 58, he gets the benefit of an additional increase of 4 per cent annually. Apart from this, if an employee becomes completely and permanently disabled, he is eligible for monthly pension despite not completing the pensionable service period.
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