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HomeBlogEPFO Pension Rules: These 7 Types of Pensions Offered by EPFO, Private...

EPFO Pension Rules: These 7 Types of Pensions Offered by EPFO, Private Sector Employees Must Know

EPFO Pension Rules: Important organization for private sector employees is **Employees’ Provident Fund Organization (EPFO)**. It not only manages the Provident Fund (PF), but also provides pension benefits to employees. Many people do not know that EPFO ​​provides various types of pensions, which are very important for private sector workers. Having a good knowledge of the pension benefits of EPFO ​​makes future financial planning easier. Let’s know in detail seven important pension schemes covered by EPFO ​​and its rules.

1. **Old-Age Pension**

The best known pension facility of EPFO ​​is old age pension. It is provided under **Employees’ Pension Scheme (EPS), 1995**. If an employee of a private sector has worked for at least 10 years and attains the age of 58 years, he is eligible for old-age pension.

Part of the employee’s Provident Fund is credited to the EPS fund after retirement to avail this pension. After retirement the worker gets a fixed amount of pension monthly. The amount of this pension depends on the employee’s total career salary and years of service.

2. **Early Pension**

If an employee retires at the age of 50 years and has 10 years of full service record, he is eligible for premature pension. However, the amount of this pension is reduced by 4% compared to the regular old-age pension for every year of early retirement. This is a special opportunity for employees who retire before 58 years.

3. **Disability Pension**

If a worker is unable to continue his work due to illness, he can get a disability pension. There is no minimum years of service or age limit for this pension. However, the employee has to submit the medical certificate to verify his retirement status.

It is mandatory for the employee to be covered by EPS fund to get the benefit of disability pension. The amount of pension depends on the salary and working period of the employee. If a worker becomes disabled at any point of his working life, he can apply for this pension.

4. **Family Pension**

In case of death of an employee his family members can get **Family Pension**. This pension is paid to the employee’s spouse, children or dependent parents.

In case of death of an employee, this pension is given to his wife or husband for life. In case of children, the pension is paid up to the age of 25 years. If parents are dependent, they are also entitled to pension benefits.

5. **Nominee Pension**

Another important aspect of EPFO ​​pension facility is **Nominee Pension**. After the death of the employee, if he has no dependents, the person nominated by the employee can get this pension benefit. This can usually be a close relative.

6. **Child Pension**

In case of death of an employee his children can also get pension benefits under EPFO ​​up to a certain period. It is usually given till the child reaches 25 years of age. But if the child is physically or mentally handicapped, then the age limit does not apply and he is given pension for life.

7. **Widow Pension**

In case of death of a workman his wife is given widow pension. This pension is available for life and the amount of pension is determined based on the amount of money contributed to the employee’s EPS. After the death of the worker, if the wife does not remarry, she will get this pension benefit for life.

Eligible Terms of EPFO ​​Pension (EPFO Pension Rules)

1. Contribution to EPS Fund: 12% of each employee’s salary is deposited in the EPF fund, of which 8.33% is deposited in the EPS fund. This money is the main basis of the employee’s pension account.

2. At least 10 years of work experience: The work experience of the employee must be at least 10 years to get pension. This is a mandatory condition for old age pension and premature pension.

3. Future Plans: Employees who work in private sector, it is important to know EPFO ​​rules well. It is important to plan at the right time to receive pension benefits due to age or disability.

Pension Benefits of EPFO

EPFO’s pension facility provides financial security to employees in their old age. Employees, especially those who have been with an organization for a long time, can be financially secure during retirement. Also, this pension facility is also provided to the families of the employees in case of untimely death or illness, which can be of great help to them.

The seven types of pension offered to employees under EPFO ​​are very important for private sector employees. This pension facility provides them with financial stability and an assurance of secure living in the future.

Conclusion

Pension rules of EPFO ​​are very important for private sector workers. EPFO provides various types of pension benefits under these three important circumstances – age, disability or death. So employees should know well about these pension rules and take advantage of it on time.

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