EPFO: Do you know that the PF amount deducted from your salary can entitle you to pension in the coming future. Let us know about this rule related to pension …
New Delhi. The PF amount deducted from your salary can entitle you to pension in the coming future. The amount deducted from your salary as Provident Fund gets deposited in two accounts. In this, the first is Provident Fund i.e. EPF and the second is Pension Fund i.e. EPS. Under this deduction, there is a total deduction of 12 percent from the salary of the employee. 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.
These are the conditions for pension,
pension can be available only to those people who are included in the EPS i.e. Employees’ Pension Scheme 1995 on or before November 16, 1995 Have happened. Apart from this, the employee is required 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.
How much contribution has to be made in EPS account
As per the rules, a part of the contribution made in the EPF account goes to 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 at the rate of salary of Rs 6500 per month, whereas if you have joined this scheme after that then you will have to contribute at the salary of Rs 15000 per month.
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