EPFO: PF Amount deducted from your salary may entitle you to pension in future. The amount deducted from your salary as provident fund is deposited in two accounts. The first one is Provident Fund ie EPF and second is Pension Fund ie EPS.
New Delhi. The PF amount deducted from your salary may entitle you to a pension in the future. The amount deducted from your salary as provident fund is deposited in two accounts. The first one is Provident Fund ie EPF and second is Pension Fund ie 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 EPF account of the employer company or organization employee.
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. Only a maximum amount of Rs 1,250 can be deposited in an EPS account every month. These are the conditions for pension
The pension can be given only to those who have joined the Employees Pension Scheme 1995 on or before 16 November 1995. Apart from this, the employee is required to contribute to EPS account for at least 10 years. These contributions can be made on behalf of the employee under one employer or more than one employer.
How much contribution has to be made to the EPS account
According to the rules, a part of the contribution made to the EPF account goes to the EPS account. This contribution is done according to the pay scale of 6500 rupees and 15000 rupees per month. If you have joined this scheme before September 1, 2014, then you will have to contribute according to the salary of Rs 6500 per month, whereas if you are associated with this scheme after that, then you will have to contribute on the salary of Rs 15000 per month.
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