EPFO Account: The government provides annual interest benefits to PF employees, making an effort to improve the financial condition of everyone. If your PF gets cut while working in a company, then do you know the important things? Apart from interest, the government also runs a scheme which can help you a lot.
You must be wondering which is the scheme that will give you fun. The EPS scheme run by EPFO, the PF deposit organization, is working to win the hearts of people. The EPS scheme run by the government is working to win the hearts of the people, through which PF employees will be given pension benefits every month. If you want to avail the benefit of pension every month, then you will have to understand important things.
PF employees will get the benefit of pension every month after retirement. There is a provision to get pension after retirement. The work of running the provident fund scheme is being done by EPF. Investors associated with the scheme deposit a fixed amount from their salary in the PF account every month.
The company also contributes the same amount as the employee contributes to the account. Apart from this, 3.67% of the contribution is transferred to Employees Provident Fund and 8.33% to Employees Pension Scheme. Investors in PPF easily get the benefit of EDLI insurance.
If the employee dies due to any reason, the nominee gets an insurance cover of up to Rs 7 lakh. You can know with the help of the calculator by visiting the official website how much pension benefit you will get.
How to Calculate Your Pension Benefit:
EPFO provides a pension calculator on its official website to estimate your potential monthly pension. Here’s a step-by-step guide on how to use it:
- Visit the EPFO website and locate the pension calculator page.
- Enter your date of birth.
- Fill in other relevant information like your joining date and date of leaving previous jobs (if applicable).
- Click on “Show/Update Details.”
- The calculator will display your projected completion date of 58 years (the standard retirement age), early pension eligibility age (50 years), and pension commencement date.
- You can choose to avail an early pension after 50 years, but this will result in a slightly reduced pension amount initially. The full pension amount will be reinstated upon reaching 58 years.
- Enter your desired pension start date and estimated pensionable salary in the calculator and click on “Show/Update Details” again.
- The calculator will then display your estimated monthly pension amount.
Additional Points to Remember:
- It’s crucial to maintain an active EPFO account by regularly updating your KYC details.
- You can access your EPFO account online through the UMANG app or the EPFO website to check your PF balance, track contributions, and submit claims.
- If you change jobs, ensure your PF account is transferred to your new employer to avoid any disruptions in your contributions and benefits.
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