Employee PF Scheme: How long will the contribution have to be done to get pension?

Today’s topic of this article is Employee Pension Scheme. Today’s article is going to be very special for every employee, so if you are an employee or if someone related to you is an employee, then the article is going to be very special for you.

If you are also willing to get all the information related to this, then it is very important for you to read our article till further because we have shared information about the Employee Pension Scheme in this article.

What is a pension, why it is needed:-

Pension is a financial aid which is provided to a particular person on a regular basis. If we talk about pension, it is not given to every person. Pension is provided to only a few people, we will also tell you that if no pension is provided then you do not need to be worried.

In pension, financial assistance is provided to the beneficiary of a particular person regularly, annually or monthly, in addition to this financial assistance is provided to the beneficiaries for life. That is to say, when the time period for grant of pension starts, then the pension is given to him till his death.

Pension is provided to the people so that they do not face any kind of financial crisis in their old age or after their retirement. The main purpose of giving pension is that after retiring, they do not have financial problems after becoming old.

Do only employees get pension :-

Don’t know how this mentality has been formed that only employees are provided pension facilities. But let us make sure you that this is not the case at all. If you want, you can also get pension.

For this, you have to open a PPF account i.e. Public Provident Fund Account. In this, you can deposit an amount from ₹ 500 to ₹ 150000 and become entitled to pension. If you are wondering where to open an account, then let us tell you that you can easily open a PPF account by going to any post or bank near you.

Some important things related to EPF account:-

If you are also an employee then you must know that if more than 20 employees are working in any company, then it is mandatory for all of them to open EPF account under EPFO ​​organization.

According to the rules of EPFO, some part of the amount deposited in the PF account of the employee is deposited in his pension account. This account is called EPF account. This amount is given to the employees at the time of their retirement.

This amount is known as pension. But it is also very important for you to know whether you are eligible for pension or not. Along with this, it is also very important for you to know that how much money will be provided to you as tension.

So let us tell you that how much pension will be provided to you, it completely depends on how many years you have worked. Apart from this, how much money is being deposited in your PF account during the job. This is also necessary. If your money goes to PF account every month, then pension will be provided to you accordingly.

How is the calculation done :-

If you try to calculate pension, for this 12% of the basic salary + DA of the employee is deposited in the PF account every month. Out of which 8.33% is deposited in his pension account. Along with this, 3.67% is transferred to EPF every month.

The same amount deposited year after year in this pension account is later provided as one pension at the time of retirement. Talking more about the calculation of PF pension, then the pension amount in PF depends on the pensionable salary of the member and how many years the job has been done. If you want to calculate your pension then you have to use the following formula.

How to check eligibility for pension :-

  • If you are interested in getting pension, then the first truth for this is that you must be a member of the EPAO organization.
  • For this you will have to work for at least 10 years. But if you are thinking that after the death of the pensioner, his money gets lost, then it is not so.
  • After his death, his pension is given to the family members.
  • To get the pension, the employee must have attained the age of 58 years. But if the employee wants to withdraw money from EPFO ​​even after attaining the age of 50 years, then he will not have any problem in this but the pension will start getting less.
  • From then onwards the employees will have to fill Form 10D.
  • Apart from this, even if the employee defers his pension till the age of 60 years i.e. for 2 years, then he will also be provided pension at the additional rate of 4% every year.

conclusion :-

Through today’s article, we have shared detailed information about the pension scheme with all of you readers. We hope that you have liked all the information provided by us. If you want to ask us any question or want to give any suggestion to us, then you can do this work easily by commenting.

Apart from this, we sincerely request all of you dear readers to share our article with as many people as possible.

Thank you very much to all of you dear readers.

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