EPFO: Members of the Employees’ Provident Fund Organization (EPFO) usually keep asking many kinds of questions. At the same time, clarifications are also issued by the EPFO to clear the doubts of the members. Similarly, if the member retires and has not withdrawn money from the EPFO, then the question arises whether he will get interest?
EPFO: The Employees’ Provident Fund Organization (EPFO) provides various facilities to its members. So that people can easily take advantage of it. From checking balance to transferring account, facilities are provided by EPFO. Employees also get a fixed pension after retirement. For this, a part of the person’s salary is deposited in the EPF account during the job. Under the PF law, an EPF account gives interest on pension to the employee till he turns 58 years old. If someone has left the job after attaining the age of 55 or before retirement, then also they can get interest on it for a fixed period.
Every month 12% of the basic salary has to be deposited in EPFO. Out of this, 8.3% is deposited in the PF account and 3.67% in the EPF scheme. The amount deposited in the EPF scheme is given as pension after maturity. After the age of 50, the EPF account holder can claim for pension. If a person claims pension before 58 years, then 4% will be deducted every year. After retirement, 75% of the amount deposited in the EPF fund is received as a lump sum. 25% is received every month as pension.
For how long does one get interest after retirement
According to the rules, if an employee leaves his job after attaining the age of 55 years and before attaining the age of 58 years or before retirement, then interest will continue to accrue on the PF account linked to that job for the next 3 years. Then whether there is any contribution in the account or not. On the other hand, if an employee does not withdraw his money from PF within 3 years i.e. 36 months, then the EPF account becomes inactive. No interest is received on such EPF account.
Entitled to get pension after working for 10 years
If an employee contributes to EPFO, then he becomes entitled to get pension after working for 10 years. However, he will get this pension after completing the age of 58 years. Pension can be taken even after 50 years, but pension will be given with deduction.
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