EPFO Pension Rules: You can get 8% extra EPS pension by using this trick; see calculations with examples

EPFO pension age

Usually, this pension is received after retirement at the age of 58 years. However, a contributor can also apply for an early pension under some conditions.

EPFO pension rule

The EPFO member needs to contribute ​​for at least 10 years.

How to get a maximum pension from EPFO

To get the maximum pension, you will need to hold your pension till the age of 60 instead of 58. In such a situation, the employee gets pension at an additional rate of 4 per cent every year. 

Pension at 59 years of age

If an employee takes a pension at the age of 59 years, he is given a pension at an additional rate of 4 per cent, whereas, at the age of 60 years, he is given a pension at an additional rate of 8 per cent. To calculate their pension, pensionable service, and salary for the years after 58 years is also taken into consideration.

Early pension between 50-58 years

You can claim for early pension only if your age is between 50 years to 58 years. But in this you get less pension. The earlier you withdraw your money before the age of 58, your pension will be reduced by 4 per cent for every year.

Understand with an example

Suppose an EPFO ​​member decides to withdraw the reduced monthly pension at the age of 56 years he will get 92 per cent of the basic pension amount (100% – 2×4) i.e. he will get a reduced pension of 8 per cent. To avail an early pension, you will have to fill the composite claim form and select the options of early pension and 10D form.

What if you withdraw pension before age 50

If you have completed 10 years of service and your age is less than 50 years, then you cannot claim pension. In such a situation, after leaving the job, you will get only the funds deposited in EPF. The pension will be available from the age of 58 years.

Options if your service period is less than 10 years

There are two options if your service period is less than 10 years. First- If you do not want to do a job, then you can withdraw the pension amount along with the PF amount.

Second option

The second option is that if you think that you will join the job again in the future, then you can take a pension scheme certificate. In such a situation, whenever you join a new job, you can link your previous pension account to the new job through this certificate. With this, the shortfall in the 10 years of employment can be compensated in the next job and become eligible for pension at the age of 58.