Do you know one can get pension under the Employees Provident Fund (EPF)? The EPF pension or EPS is a pension scheme for the employees of the organized sector who otherwise don't have any pension scheme.
EPS gives a guaranteed monthly pension after retirement. The government department Employee provident fund organization manages the pension account of all the employee.
What is EPS?
EPS (Employee Pension Scheme) in the provident fund is unknown for most of the people.The Employee Pension Scheme or EPS is clubbed with the EPF. The EPF part is actually for your provided fund and EPS is for your pension.
Minimum pension amount
The Government has now raised the minimum pension amount in the EPS. A minimum of Rs 1,000 per month will now be granted as pension to employees of the organized sector.
The 12% contribution made by the individual from your salary goes into your EPF. In the 12% contribution by the employer, out of that 8.33% goes in EPS (subject to the maximum of Rs 1250), and the rest goes into EPF. That is the part of your employer contribution makes up your pension.
When will you get the pension?
- There are certain conditions for getting pension under EPS.
- One is liable for pension only if one has completed the age of 58.
- One is liable for pension only if he has completed ten yrs of service
- An employee cannot have more than one EPF account.
- The minimum Pension per month under EPS is Rs 1,000.
- The lifelong pension is available to the member, and his death members of the family are entitled to the pension.