EPFO Schemes– Employees Provident Fund Organisation i.e. EPFO ​​is the main social security agency under the Government of India. It is responsible for regulating and managing the Provident Fund in India. It is for employees working in the organized sector. If you are a member of EPFO, then you will get the benefit of 3 schemes. Through which there will be no tension of money from job to retirement.

 

1. EPF (Provident Fund)

EPF is a retirement saving scheme. In this, a part of your salary is deposited every month and your company also gives the same amount. Currently, 8.25% annual interest is being received on this account, which can play an important role in creating a big fund (Retirement Corpus) in the long run.

 

Rules for depositing money in EPF Account

 

Every month, 12% of the basic salary and DA is deposited in the EPF account by the EPFO ​​members. The same amount is deposited by the employer i.e. the company. However, the company’s contribution is divided into two parts. Out of this 12%, 8.33% is deposited in the pension fund EPS and 3.67% in the EPF account.

 

You can take advance before retirement under these conditions

 

Medical treatment, construction of house, purchase of house or plot, renovation of house,

marriage in the family, after completion of 55 years, for Senior Pension Insurance Scheme,

in case of natural calamity, being unemployed for more than 1 month, purchasing equipment for the disabled

 

2. Employee Pension Scheme (EPS)

If you are an EPF (Employee Pension Fund) member, that is, money is deducted from your salary for the Provident Fund, then you should know that your contribution is also made in the Employee Pension Scheme (EPS). The job of managing the Employee Pension Scheme (EPS) is of EPFO. This is a pension scheme for employees working in the organized sector .

You will get the benefit of this scheme only if your job tenure is at least 10 years. However, you will start getting regular pension after completing the age of 58 years. In some conditions, 10 years of job is not mandatory. Out of the contribution made by the company, 8.33 percent goes to the employee’s pension fund (EPS). According to the current rules, the maximum limit of pensionable salary is Rs 15 thousand. In such a situation, 15000 X 8.33 / 100 = Rs 1250 will go to his pension account every month.

 

EPS Calculator for Pension

Let’s assume that you started working at the age of 25 and are retiring at the age of 58. That means the duration of the job was 33 years. Under the old pension scheme, the maximum pensionable salary is Rs 15,000. Monthly pension: 15,000X 33/70 = Rs 7072

 

How many types of pension

In case of death, the employee’s wife gets pension or in case of his/her absence, the children get pension. In case of absence of wife or children, the parents get pension. If there is no one in the family, the nominee will get pension. In case of disability, disability pension will be given.

 

3. EDLI

EDLI (Employee Deposit Linked Insurance Scheme) is a life insurance scheme offered by EPFO ​​which provides life insurance cover to employees working in the organized sector. You do not have to contribute to the scheme, but the employer contributes 0.5 percent every month.

Under the scheme, in case of death of the employee during service, his family gets a lump sum insurance amount. This can be a maximum of Rs 7 lakh, which is decided by the balance of the last 12 months in the account.