EPFO Rules: Many times people lose their jobs or have to leave their jobs due to some reason. In such a situation, how will you be entitled for pension, know in detail
EPFO Rules: Private sector employees are also entitled to get pension every month after retirement from the central government. Employees working in the organized sector if they work for 10 years. In such a situation, pension is available every month after the age of 58 years. This is the reason that every month some money is deducted from the salary of the employees which is deposited in the PF account. To take advantage of this scheme, employees have to fulfill certain conditions.
According to the EPFO rule, 12 percent of the basic salary + DA of the employees working in the private sector is deposited in the PF account every month. Out of which the entire share of the employee goes to EPF. Whereas 8.33 percent of the company goes to the Employees’ Pension Scheme (EPS). At the same time, 3.67 percent goes to EPF every month.
10 Year Completion Calculation
According to the rules of EPFO, after working for 10 consecutive years, the employee starts getting pension. The only condition in this is that the tenure of the job should be 10 years. 9 years 6 months service is also counted as 10 years. But if the tenure of the job is less than 9 and a half years, then it will be counted as 9 years only. In such a situation, the employee can withdraw the amount deposited in the pension account even before the age of retirement. As such, they are not entitled to pension.
What happens after a long gap?
Now the question arises that if the employee has worked in two different institutes for 5-5 years. In such a situation, will the employee get the benefit of pension? Sometimes there is a gap of two years between the two jobs, will that employee be entitled to pension? Sometimes people lose their jobs. Especially women take a break from their jobs due to their responsibilities. After some time start working again. In such a situation, how will his 10-year tenure be completed and how will he get the benefit of the pension scheme?
EPFO rules
After leaving an institution in the job, if there is a gap in the job, then there is no need to worry. In such a situation, whenever you start a job again somewhere, do not change your UAN number. With this, money will be transferred from your new company to the same account after changing the job. With this, the total tenure of your previous job will be added to the new job. In this case, you will not need to complete 10 years of employment again.
