EPFO- If you do this, you will not get EPFO pension! Know what it is

EPFO Pension- If you are employed, then every month some part of your salary goes to PF i.e. Provident Fund. This money is for the security of your future. This PF account can not only save money but also provide pension after retirement but for this it is very important to follow some rules. If you accidentally withdraw the entire PF money, then your dream of pension can be shattered.

How much money is deposited in PF?

Every month 12% of your basic salary is deposited in your PF account. Not only this, your company also deposits the same amount from its treasury. However, all this money does not go to one place! Out of the company’s 12%, 8.33% goes to EPS i.e. Employee Pension Scheme, and the remaining 3.67% goes to your EPF i.e. Employee Provident Fund. This EPS is the magical thing that gives you pension in retirement.

You worked hard for 10 years and deposited money in PF. Now you are expected to get pension at the age of 50. But if you withdraw all the PF money while leaving the job or in between and it also included the EPS part, then you will not get a single rupee as pension. Withdrawing EPS money means that you have lost the key to your pension. Many people withdraw the entire PF in a hurry while changing jobs or when needed, and this is where the problem arises. So next time think carefully before withdrawing PF.

How to keep your pension safe?

So now the question is how to keep pension safe? The answer is simple- do not touch EPS funds! If you have to withdraw money from PF, then withdraw only the EPF part. Leave the EPS fund as it is. By doing this, you will remain entitled to pension after the age of 50.

According to EPFO rules, if you have contributed to PF for 10 years or more and have not touched the EPS fund, then you can claim pension after the age of 50. This pension will make your retirement easy, so that you can live the golden days of life without any worries.

You will get pension from every bank!

EPFO has started a great facility from January 1, 2025, which has made the process of getting pension easier. Now you can withdraw your pension from any bank. Earlier this facility was limited to only one particular bank, but now through digital verification you can get your pension from anywhere. This is a big relief especially for those people who have settled in their village or any other city after leaving the job.