Active Stocks
Fri Jun 14 2024 09:07:08
  1. Tata Steel share price
  2. 183.00 0.27%
  1. State Bank Of India share price
  2. 844.00 0.01%
  1. HDFC Bank share price
  2. 1,582.05 0.07%
  1. ITC share price
  2. 430.50 0.05%
  1. Power Grid Corporation Of India share price
  2. 325.05 1.14%
Business News/ Money / Personal Finance/  EPF pension benefits: Eligibility, amount of pension and other details
BackBack

EPF pension benefits: Eligibility, amount of pension and other details

To become eligible for pension, subscriber must have spent a minimum of 10 years or more and retire upon attaining the age of 58 years.

When a subscriber retires after the age of 50 but before 58, s/he can claim pension at lower rates.Premium
When a subscriber retires after the age of 50 but before 58, s/he can claim pension at lower rates.

Employees’ pension scheme (EPS) was introduced on Nov 16, 1995, replacing the Employees’ Family Pension Scheme, 1971. This is a social security scheme offered by the Employees' Provident Fund Organisation (EPFO).

The new scheme (EPS, 1995) has a provision to give pension to EPF subscribers as well as to the family members and nominees of subscribers.

When do you become eligible for pension?

To become eligible for pension, subscribers must have spent a minimum of 10 years or more in the service and retire after attaining the age of 58 years. Alternatively, if an EPF subscriber has attained the age of 58, s/he becomes eligible for pension even if s/he has not retired.

Alternatively, if the subscriber has attained the age of 50 and already spent longer than 10 years in the service as an EPF subscriber is eligible to receive the pension.

ALSO READ | EPF: How to check your balance on passbook? A step-by-step guide

How to calculate pension?

In order to calculate the amount of pension, one should remember that it is based on two key factors: number of years for which contribution has been made towards the pension, and the average salary during the 60 months before retirement.

However, one can find out the amount of pension by visiting the EPF website and following the steps mentioned below:

A. Check the link: epfindia.gov.in and go to ‘online services’ on the left side corner.

B. Here you need to click the slug ‘EDLI & Pension Calculator’, which takes you to a new webpage.

One can calculate pension on the EPF website as shown in this image.
View Full Image
One can calculate pension on the EPF website as shown in this image.

C. Here, you can access the ‘EDLI & Pension Calculator’. But prior to this, you may want to explore ‘how to use a pension calculator’ on the same webpage.

D. When you click the EDLI & pension calculator, you are taken to a new webpage where you can enter inputs to find out the pension amount.

Age matters

Remember that EPF subscribers are entitled to receive pension when they have spent a minimum of 10 years in the service. And if they have spent 20 years and longer, they are entitled to receive a two years bonus too.

And when a subscriber retires after the age of 50 but before 58, s/he can claim pension at lower rates.

ALSO READ |  EPF: How to know your UAN? A step-by-step guide

Lower rates imply 4 percent lower pension for each year less than 58. For instance, when someone retires at 56, s/he will be entitled to receive eight percent lower pension.

One can even retire beyond 58, and becomes entitled to receive four percent higher pension for each extra year till 60.

 

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 24 May 2024, 05:11 PM IST
Next Story footLogo
Recommended For You