Employee Pension Scheme: How long the contribution will have to be made in the PF account to get the pension? Learn about the benefits
It depends on how many years you have done the job and how much money you have deposited in the PF account during the job. If your money also goes to the PF account every month, then know here for your benefit that after how many years of service you become entitled to pension and what are the conditions for it?
How is pension calculated?
Every month 12 percent of the basic salary + DA of every employee goes to the PF account. Out of which 8.33 percent goes to his pension account and 3.67 percent goes to EPF every month. After accumulating this money deposited year after year in the pension account, he gets it as a pension after retirement. Calculation of PF pension depends on the pension amount in PF, the pensionable salary of the member and the number of years of service. You can use this formula to calculate your pension – Pensionable Salary X Total Years of Service /70
How to check eligibility for pension
- The first condition for getting pension is that you should be a member of EPFO.
- For this, it is mandatory for you to work for at least 10 years. After the death of the employee, the pension is given to the family members.
- You must be 58 years old to get pension. Although you can start withdrawing money from EPS at the age of 50, but that pension will be less. For this, Form 10D has to be filled.
- Apart from this, you can also postpone your pension for two years till the age of 60 years, after which you will get pension at an additional rate of 4 percent every year.