EPFO members have to contribute at least 15 years to their EPF account without any interruption to be entitled to pension.
New Delhi. Everyone knows about the benefits of Employee Provident Fund i.e. EPF investment. But many people do not know that they are entitled to pension on their EPF account. EPF is the safest and beneficial investment plan for future and retirement benefits of salaried class. EPFO members are required to contribute to their PF account from their salary every month. Every month 12% of the basic salary of the employees is deposited in the EPF account and the same amount is deposited in the EPF account of the employer company or the employee.
EPFO members get many benefits, of which pension is also one. But many people do not know that they are entitled to pension on their EPF account. Jitendra Solanki, a tax and investment expert registered with market regulator SEBI (SEBI), said that EPFO members have to contribute at least 15 years to their EPF account without any interruption in order to be entitled to pension. 12% of basic salary has to be deposited
He said that when the EPF account of the employees opens, then along with this, their EPS account is also opened, in which the employer company or institution has to deposit 12% of the basic salary of the employee. Out of this 12%, 8.33% is deposited in the employee’s EPS account, while 3.67% is deposited in the EPF account.
Those whose salary is less than Rs 15,000 per month are not entitled to EPF account
So when you check the balance of your EPF, then the amount deposited in it does not show double of your contribution. On the change in the rules of EPFO, Amit Gupta, MD of CAG Infotech, a registered tax and investment solution company with SEBI, said that earlier all employees were benefited by EPFO. But now those whose salary is less than Rs 15,000 per month are not entitled to EPF account. Jitendra Solanki said that according to the rules of EPFO, employees get pension when they are 58 years or more. EPFO members get a pension of at least 1000 rupees every month.