The Employees' Provident Fund Organization (EPFO) members are eligible for Provident Fund (PF) benefits under Employees' Provident Fund (EPF). In this EPFO benefit, an EPF account holder has to contribute 12% of its basic salary in one's EPF account while its recruiter will also deposit 12% of the employee's basic salary in their respective EPF accounts. This EPF contribution is mandatory for both employee and the employer. As per the EPFO rules, there are various EPFO benefits that an EPF account holder is eligible for, pension is one such benefit that most of the EPFO subscribers are unaware of.
To become eligible for the EPFO pension benefit, the employees need to contribute for at least 15 years in one EPF account without any disruption. When an employee’s EPF account gets opened, he also gets EPS (Employees’ Pension Scheme) account where 8.33% contribution of the employer is deposited while the rest is deposited in the EPF account. So, when an employee will check one's EPF balance, one's EPF balance will not be double of the employer's contribution."
Reminding about an important change in EPFO pension benefit rule Amit Gupta, MD at CAG Infotech — a SEBI registered tax and investment solution company said, "Earlier EPFO pension benefit was given to all employee but now it has been limited to only those employees whose monthly salary is ₹15,000 or below. So, those employees, whose monthly take home salary is ₹15,000 or below are now eligible for EPFO pension benefits.
EPF pension under EPS benefit is given to the EPF account holder when the beneficiary turns 58 years of age. Minimum pension that an EPS beneficiary can expect is ₹1,000.
Source : www.livemint.com
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