PF Account Benefits: EPF Account Holders Are Eligible For Pension Benefit. Check Details

New Delhi: If you are a member of Employees’ Provident fund Organisation (EPFO) then you are eligibile of Provident Fund (PF) benefits including pension.  An employees’ Provident Fund (PF) account remains one of the most preferred investment options to meet retirement goals provided an employee fulfills Rs 15,000 threshold for monthly PF contribution. There are several EPFO benefits that a subscriber can avail, and pension is one such benefit.

How can you reap the pension benefit?

A PF subscriber can avail the pension benefits for which an individual has to contribute 12 per cent of the basic salary in EPF account while employer will deposit 12 per cent of the employee’s basic salary in their respective EPF accounts. Also Read: Sovereign Gold Bond Scheme 2021: First Tranche Of The Issue Opens Today. Key Things To Know Before Buying

Note, that this contribution is mandatory for both employee and the employer.

What makes you eligible for the pension benefit?

In order to avail the EPFO pension benefit, the employees needs to contribute for at least 15 years in one EPF account at a stretch without any break. As per the investment advisor quoted in Mint report, subscriber at the time of opening an EPF account, also gets EPS account where 8.33 per cent contribution of the employer is deposited while the rest 3.67 per cent is deposited in the EPF account. Remmeber that the EPF balance won’t be double of the employer’s contribution, says the expert.

What’s the limitation?

It is to be noted that earlier EPFO pension benefit was available to all employee, but now it has been limited to only those whose monthly salary is Rs15,000 or below. Hence, it is important to note that employees, whose monthly take home salary is Rs15,000 or below are now eligible for EPFO pension benefits.

What’s the pension amount subscriber can expect?

As per the report, EPF pension benefit is given to the account holder when the beneficiary turns 58 years of age. Minimum pension that an EPS beneficiary can expect is Rs1,000.