EPFO Pension: 7 types of monthly pensions that every employee can get under Employees' Provident Scheme

EPFO Pension: If a member contributes to the EPFO for 10 years, they become eligible for a pension, that is what EPFO rules say. Typically, the pension starts at the age of 58. However, there are various conditions under which an EPFO member or their family can receive a pension. EPFO offers seven different types of pensions. So, if you also work in the private sector and are an EPFO member, it’s important for you to be aware of these options.

1. Early Pension

While EPFO generally provides pensions starting at the age of 58, members who qualify for a pension can choose to begin receiving it as early as 50. However, opting for an early pension results in a reduction of 4 per cent per year. For example, if you are eligible for a pension of Rs 10,000 at 58, claiming it at 57 would reduce it to Rs 9,600, and at 56, to Rs 9,200.

2. Retirement Pension

Retirement pension is provided by the EPFO once a member turns 58. The pension amount depends on the total contributions made to the pension fund. Members can also choose to claim their pension between the ages of 58 and 60, in which case the pension amount increases by 4 per cent each year.

3. Disability Pension

This pension is granted if a member becomes temporarily or permanently disabled during their service. The 10-year contribution rule does not apply in this case. A subscriber who has contributed to EPS for at least two years is eligible for this pension.

4. Widow or Child Pension

If an EPFO subscriber passes away, their spouse and two children under 25 are entitled to a pension. A third child can also receive a pension, but only after the first child’s pension ends at age 25. The 10-year contribution rule does not apply here; if a subscriber has contributed for at least one year, their widow and children are eligible for a pension upon their death.

5. Orphan Pension

If both the EPFO subscriber and their spouse pass away, two children under the age of 25 are entitled to an orphan pension. This pension is provided only until the children reach 25 years of age.

6. Nominee Pension

If the EPFO member has no spouse or children, the nominee appointed by the member will receive the pension upon the member's death. If both parents are named as nominees, the pension is divided according to the specified shares. If only one person is nominated, they receive the entire pension amount.

7. Dependent Parent Pension 

In the event of a single EPFO subscriber's death, the dependent father is eligible for a pension. If the father is deceased, the mother will receive the pension for the rest of her life. To claim this pension, Form 10D must be submitted.