Along with this, there is a total deduction of 12 percent from the salary of the employee under this deduction. The same amount is deposited in the employee’s EPF account by the employer company or organization. 3.67 percent of this deduction is deposited in your EPF account, while 8.33 percent of the deduction is deposited in the Employees’ Pension Scheme. The maximum amount that can be deposited in the EPS account every month is Rs 1,250.
when will you get 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 will be given to the family members. You must be 58 years old for pension. Although you can start withdrawing money from EPS at the age of 50, but that pension will be less. For this you have to fill Form 10D. Apart from this, you can also defer your pension for two years till the age of 60 years, after which you will continue to get pension at an additional rate of 4 percent every year.
Conditions for Pension
The benefit of pension can be available only to those people who have joined EPS i.e. Employees Pension Scheme 1995 on or before 16 November 1995. Apart from this, it is very important for the employee to contribute in the EPS account for at least 10 years. This contribution can be made on behalf of the employee under one employer or more than one employer. In which there is no two opinions.
How much contribution is deposited in EPS account
As per the rules, a part of the contribution made in the EPF account is deposited in the EPS account. This contribution is made according to the pay scale of Rs 6500 and Rs 15000 per month. If you have joined this scheme before 1st September 2014 then you will have to contribute according to the salary of Rs.6500 per month, whereas if you have joined this scheme after that then you will have to contribute on the salary of Rs.15000 per month.