The Employees Provident Fund Organization (EPFO) beneath the Ministry of Labor runs PF and pension schemes for corporations and staff working within the organized sector. Employees deposit part of their wage each month for the PF and so does the corporate. Some a part of the corporate deposited within the PF additionally goes to the Employee Pension Scheme (EPS). It is thru this that staff get pension after retirement. EPS advantages not solely the worker but in addition his household. If the EPF member dies attributable to some motive within the coronary interval, then his household i.e. spouse or husband and kids additionally get the good thing about pension. It can also be referred to as household pension.
When do you get pension
To avail the pension, the worker has to work repeatedly for 10 years. Only the corporate contributes to this pension scheme. This constitutes 8.33 per cent of the corporate’s 12 per cent contribution to the PF. The authorities additionally contributes pension, which isn’t greater than 1.16% of primary wage. EPF member is entitled to pension even when he’s totally disabled apart from retirement. EPF is required to have served 10 years for household pension. An worker is entitled to pension provided that he / she has been employed for 10 years. It is handled like a household pension.
Who will get a household pension ..
After the dying of a member of the first EPS scheme, his spouse or husband will get a pension.
2 If the worker has youngsters, then his 2 youngsters additionally get pension until the age of 25 years.
3 If the worker shouldn’t be married then his / her nominee will get pension.
4 if there isn’t a nominee. After the dying of the worker, his dad and mom are entitled to pension.