PF Account: After how many years of service will PF account holders get a pension, know the rules of EPFO...

PF: Almost every person working in the private sector saves some part of his earnings and invests it in financial instruments that provide high returns. From this point of view, a PF (Provident Fund) account is an excellent option.

It helps in solving the financial problems of the person in the future and reduces the worry of pension at the time of retirement. PF account holders get the benefit of pension under EPS-95, although there are certain conditions for this, which the account holder is required to follow.

What is EPS?

PF account holders need to know what is EPS. Often people get confused about EPS. Let us tell you that this is a pension scheme, which is managed by EPFO. Existing and new EPF members are included under this scheme. There is only one condition to avail the benefits of this scheme, which the employee has to fulfill. According to the rules of EPFO, any employee is entitled to get a pension after working for 10 years.

EPFO manages it-
Employees Pension Scheme 1995 (EPS-95) was started by EPFO on 19 November 1995, which is a social security initiative aimed at meeting the retirement needs of employees in the organized sector. It is managed by EPFO and this scheme guarantees pension benefits to eligible employees who reach the age of 58 years. If we look at the rules, 9 years and 6 months of service is also counted as 10 years. If the time of work is less than 9 and a half years, then it will be counted as 9 years only, in such a situation, employees can withdraw the amount deposited in the Pension Account even before the age of retirement but they are not entitled to pension.

Calculation of PF-
A large part of the salary of people working in the private sector is deducted as PF, which is deposited in the employee's PF account every month. If you work in a private job for 10 years, you become eligible to get a pension. According to the rules, 12 percent of the employee's basic salary + DA is deposited in the PF account every month. Out of which the employee's entire share goes to EPF, while the employer's 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF every month.

Question on tenure less than 10 years-
I was told that pension is confirmed only after working for 10 years, so now the question arises if the employee has worked in two different institutions for 5-5 years, then what will happen? Or if there was a gap of two years between the two jobs, would that employee be entitled to a pension or not? If we look at the rules, despite the gap in the job, one gets the benefit of a pension even after completing a tenure of 10 years by combining the entire job. Here the employee mustn't change his UAN number in every job, the old UAN number will have to be continued. That is, a total tenure of 10 years should be completed on a single UAN. Because even after changing the job, the UAN remains the same and the entire money deposited in the PF account will be visible in the same UAN.

What is the UAN number?

Universal Account Number (UAN) is a 12-digit permanent identification number, which is provided to each member by the Employees Provident Fund Organization (EPFO). This number remains unchanged throughout the entire Berufsleben of the employee, no matter how many jobs he changes. There can be multiple member IDs under UAN, but all IDs are linked to the same UAN, making it easier for employees to manage their PF accounts.

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