If you are a employee and your PF eats, then the question will definitely come to your mind that after retirement you will get how much pension you will get. Especially when the retirement age is up to 60 years, then you need to know what the rules of the Employees Provident Fund Organization (EPFO) are called and how it is calculated at the time of retirement.
How does PF deposit money in account?
If you work in the private sector, then 12 percent of your salary goes to your PF account. Your company also contributes equally. But its 8.33 percent is deposited in pension funds and the remaining 3.67 percent in PF.
What do pension rules say?
According to EPFO, if you have contributed to PF account for 10 years, then you are entitled to pension. You can claim pension at the age of 50, but will be cut by 4 percent every year. Whereas, if you wait till the age of 58, you get full pension. If you do not claim pension after 58 years. And if you postpone it for 60 years, you will get a 4 percent increase every year, that is, at the age of 60 you will get more than 8 percent of your pension.
What is pension calculation formula? Understand
According to the current rules of EPFO, the maximum limit of pensionable salary is Rs 15,000. This means that if 15,000 x 8.33/100 = Rs. You can deposit Rs 1,250 in your pension fund every month. When pension is calculated, this formula is calculated. Pensionable Salary X Pensionable Service / 70 = Monthly Pension. Now the question is how much pension you will get at the age of 60.
Know how much pension you will get in 60 years?
If you start working at the age of 23 and retire at the age of 58, then you have worked for a total of 35 years. In this case, pensionable salary = Rs. 15,000, service period = 35 years after pension 15,000 x 35/70 = Rs. This will be 7,500 per month. At the same time, if you claim pension at the age of 60, then there will be an additional increase of up to 8 percent. But PF pension calculation is based on your average salary of your last 60 months.
