Utility News Desk!!! Anyone who works in the private sector in India. He has a PF account. PF accounts are operated by the Employees Provident Fund Organization i.e. EPFO in India. 12% of the salary of the PF account holder is deposited in the PF account. The same contribution is also made by the employer i.e. the company.
In which 8.33 percent goes to the pension fund and 3.67 percent goes to the PF account. This question often comes to the mind of many people. If a PF account holder works for 60 years. So how much pension will he get after 60 years? What are the rules of EPFO regarding this? So let us tell you its complete calculation.
According to EPFO rules, if someone invests in PF account for 10 years. So he becomes a claimant to get pension. After 50 years, PF account holder can claim pension. But if he claims pension before 58 years, there will be a deduction of 4% every year. That means, if someone claims pension at the age of 54, there will be a deduction of 16%.
But even after 58 years no one claims pension. So at the age of 60, he will get 8% more pension as per the increase of 4% every year. Let us tell you that under the current rules of EPFO, the maximum limit of pension plus salary is Rs 15000. That means every month only Rs 15000 X 8.33/100 = Rs 1250 can be deposited in your PF pension fund.
If you have started a job at the age of 23. And you are retiring at the age of 58. So you have worked for a total of 35 years. The maximum pensionable salary under the old pension scheme of EPFO is Rs 15000. When any employee leaves UPS, his pensionable salary for the last 60 months is his average monthly salary.
It will be calculated like this:
Pensionable Salary
15000
Whereas if you do not claim pension till the age of 8 years, then you get pension at an extra rate of 8 percent.