There are so many rules regarding pensions. If you are a government employee, then you should know everything about pensions. Any person who works in the private sector in India. He has a PF account. PF accounts are operated by the Employees’ Provident Fund Organization (EPFO) in India. 12% of the PF account holder’s salary is deposited in the PF account. The same contribution is made by the employer, in which 8.33 percent goes to the pension fund and 3.67 percent goes to the PF account. Often the question comes to the mind of many people. If a PF account holder has worked for 60 years. How much pension will he get after 60 years? What are the rules of EPFO regarding this? So let’s tell you its complete calculation.
EPFO’s rules regarding pension
According to EPFO rules, if someone invests in a PF account for 10 years. So he becomes a claimant to get a pension. After 50 years, the PF account holder can claim a pension. But if he claims a pension before 58 years, then there will be a deduction of 4% every year. That is, if someone claims pension at the age of 54 years, then there will be a deduction of 16%.
But even after 58 years, no one claims a pension. At the age of 60, he will get 8% more pension, according to the increase of 4% every year. Under the current rules of EPFO, the maximum limit of pension sum salary is Rs 15,000. That is, only 15000 x 8.33/100 = 1250 rupees can be deposited in your PF pension fund every month.
How much pension will be given after 60 years?
If you started working at the age of 23. And you are retiring at the age of 58. So you have worked for a total of 35 years. Under the old pension scheme of EPFO, the maximum pensionable salary is Rs 15,000. When an employee leaves UPS, the pensionable salary of the last 60 months is his average monthly salary.
Let’s calculate it this way
Pensionable Salary X Pensionable Service/70 = Monthly Pension
15000 x 35/70 = 7500
At the same time, if you do not claim pension till the age of 8 years, then you get a pension at an extra rate of 8 percent.
