EPFO Update – Most private employees are unaware of the provision of a pension. If an employee working in a private company loses their job mid-term, there’s no need to worry. Did you know that private employees also receive a monthly pension after a certain age?
For this, a portion of the employee’s salary is simply deducted as PF. The Employees’ Provident Fund Organisation has launched the EPS for PF employees. Under the EPS, employees receive a monthly pension after retirement. If a job is lost mid-term, you can understand some important points about the rules for receiving a pension.
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What will be the pension if you lose your job?
Many times, private employees lose their jobs. There’s no guarantee that they will get a job again. If, for some reason, you worked for 10 years and your PF was deducted, you will still be able to receive pension benefits. If I, for some reason, were an employee who worked for less than 10 years, I would not receive pension benefits.
Pension benefits will not be available after 9 years of service. According to EPFO rules, a minimum of ten years of service is mandatory to receive a pension. Currently, the minimum pension limit is ₹1,000.
The maximum pension is ₹7,50Employer organisations have been demanding an increase in the minimum EPF contribution amount for a long time, but the government has yet to provide any positive news.
When was the EPF limit changed?
For your information, the last EPF limit was changed in 2014. The limit was increased from ₹6,500 to ₹15,000 per month. This change by the government was implemented on September 1, 2014.
Now, there are talks of changing this rule again. The EPF limit could be increased to ₹25,000, representing an increase of ₹10,000. According to the EPFO report, there are more than 7 crore PF employees.