For the salaried professionals who are contributing to the Employees’ Provident Fund Organization (EPFO), there is now an important change pertaining to pension eligibility. As per the latest EPFO guidelines, you can now receive a pension after serving the organization for 10 years. The facility is, of course, advantageous for those who are willing to serve the organization on a long-term basis since it allows them some form of income assurance during the post-retirement phase.
The EPFO is the biggest social security organization of India which administers provident funds and pension schemes for the employees in the organized sector. While the PF component allows employees to build their corpus, the Employees’ Pension Scheme (EPS) ensures a regular monthly income post-retirement.
Key Criteria and Advantages:
10 Years Of Service: The main requirement to qualify for pension under EPS is a minimum of eligible service with contributions to be regular capped at 10 years. For employees with less than 10 years of service, there is no eligibility for pension, but a withdrawal of accumulated EPS corpus is available.
Retirement Age: Generally, the pensionable age is set at 58 years, which is when most people start receiving their pensions. Early (reduced) pension around 50 years and deferred (increased) pensions up to 60 years can also sometimes be catered for subject to certain conditions.
Monthly Pension: With eligibility, employees get a regular monthly pension for life. The pension amount is derived from the last drawn salary (specifically, the average of the last 60 months’ pensionable salary) and the total length of pensionable service.
Disability Pension: A monthly pension is payable to employees who have permanently and totally become disabled after starting to work, irrespective of the period of service.
Family Pension: In unfortunate circumstances if an EPS member dies, the spouse and children can continue to draw a family pension, providing sustenance for the bereaved family.
Nominee Benefits: Members can appoint beneficiaries to receive the benefits in the event of their death.
Other Benefits from EPFO:
In addition to the primary pension and provident fund benefits, members of EPFO also enjoy:
Withdrawal of Provident Fund (PF): Employees eligible can withdraw their PF accumulations either partially for specific purposes like home purchase, education, and marriage or fully upon retirement/resignation.
EDLI (Employees’ Deposit Linked Insurance) Scheme: EDLI is a scheme meant for offering life insurance to EPF members as long as they are employed. Financial aid is given to the nominee/legal heirs in case of death. The benefit amount is determined by the member’s average balance and salary.
Online Services: Withdrawals, KYC updates, balance inquiries, and pension- services can all be done online. The EPFO has put in place comprehensive online services which enhances accessibility and increases transparency.
Every employee needs to actively manage their EPF account, and understanding these rules helps in the process. The pension component especially after a decade of serving acts as a safety net and aids in having a respectable life after retirement.
Read More: Big News for Employees! EPFO Pension Scheme Now Available After Just 10 Years of Service
-
Hulk Hogan Bombshell: Hulk Hogan's cause of death might potentially be attributed to medical malpractice- here’s what really happened
-
Roblox Shutdown Rumors Explained: Is company closing down on September 1, 2025? Here’s complete truth and Roblox Corporation official statement
-
Lil Nas X hospitalized and arrested in Los Angeles; Here’s more on his family, career, relationships, and net worth
-
Are OpenAI, Google, Meta plotting to take down state AI regulations?
-
Robolox is banned in these countries? Here’s all about global bans, US lawsuits, shutdown rumors and safety issues explained
