EPFO Pension: Earlier there was no such confusion among government employees. All retiring government employees were guaranteed pension. But now the government has also made some changes in the pension schemes. If this is the case in the government system, then whether private sector employees will get pension after retirement or not is an issue that needs to be discussed.
Employees working in the private sector get pension after retirement under the EPS scheme of the Employees Provident Fund Office (EPFO). Every month, a portion of their company’s contribution is credited to the EPS. EPS is a system under which a fixed amount (pension) is paid to EPF members every month after retirement.
The amount of pension that EPF members receive is not determined by the market returns of the company they work for. Instead, a different formula is adopted for this. This formula is determined on the basis of work experience and pay scale of the employee.
In recent years, the process of receiving pension for retired employees of private companies has become more complicated due to changes in Employees Provident Fund Office (EPFO) rules, salary caps and court orders. As a result, it is not easy to understand how much pension retired employees will receive.
At what age can one get EPF pension?
*The main eligibility criteria for EPF pension are very simple.
* To get monthly pension for life, minimum 10 years of service of the EPF member is mandatory.
* Private sector employees become eligible to receive monthly pension after the age of 58 years.
* Employees can opt for early retirement after the age of 50 years.
* The amount of early retirement pension of the employee is reduced below a certain limit.
*EPF adopts a standard formula to calculate the pension amount.
* This formula is decided on the basis of salary and service years of the pensioner.
* If you leave the job before completion of 10 years, you will not be eligible for monthly pension.
* Instead, you will get the benefit of withdrawal only once.
*This will be a small amount calculated using the service table provided by EPFO.
*The table sets a limit based on completed service years.
* This shows the total amount to be credited to your EPS account.
How much pension do EPS pensioners get?
Suppose an employee is getting a pension of Rs 15,000 and his service period is 10 years. His monthly pension will be (₹ 15,000 × 10) / 70 = ₹ 2,143.
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