Are you also a pensioner? Then this article is for you. Today we are going to discuss PF Account Pension Rules. In India, any person who works in the private sector 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 also 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 works for 60 years. So 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 the 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 single year. That is, if someone claims pension at the age of 54 years, then there will be a deduction of 16%.
At the same time, no one claims a pension even after 58 years. So 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 total salary is Rs 15000. That is, 15000 x 8.33/100 = 1250 rupees can be deposited in your PF pension fund every month.
How much pension will be received after 60 years?
If you have started a job at the age of 23. And you are retiring at the age of 58. So you have worked for a total of 35 years. The maximum pensionable salary under the EPFO’s Old Pension Scheme is Rs 15000. When an employee leaves UPS, his pensionable salary for the last 60 months is his average monthly salary.
Pension Calculation
Pensionable Salary X Pensionable Service/70 = Monthly Pension
15000 x 35/70 = 7500
On the other hand, if you do not claim pension till the age of 8 years, then you get a pension at an extra rate of 8 percent.
