EPFO employees get so many types of pension, and know its terms and conditions

Employees working in the organized sector in India get benefits from the Employees Provident Fund Organization (EPFO). This government body provides a variety of benefits including provident fund, insurance, and pension. Both employees and employers contribute to this scheme. Every employee in the organized sector has an EPFO ​​​​account, in which 12% of their salary is deposited. The employer also contributes an equal amount, but it is divided into two parts: 8.33% goes to the Employees' Pension Scheme (EPS), known as the Pension Fund, and 3.67% is deposited in the Employees' Provident Fund (EPF).

After retirement, employees get a pension through EPFO. There are six types of pensions available under EPFO, each of which has its terms and conditions. Six types of pension offered by EPFO ​​EPFO ​​launched the Employees’ Pension Scheme (EPS) in 1995 to benefit employees in the organized sector. To be eligible for pension benefits, an employee must either attain the age of 58 years or complete 10 years of service. The six types of pension offered by EPFO ​​include:

Superannuation pension: It is offered to employees who retire at the age of 58 after working for at least 10 years in the organized sector.

Early pension: Employees who have worked for 10 years or more but retire before the age of 58 are eligible for early pension.

Disability pension: If an employee becomes permanently disabled while working, he or she gets financial support through disability pension.

Widow and children pension: In case of the death of the EPFO ​​member, the surviving spouse gets a monthly pension, and two children get a monthly pension till the age of 25 years.

Orphan pension: If both parents pass away, EPFO ​​provides a monthly pension to the children.

Nominee pension: If the EPFO ​​member has no spouse or children, the nominee, such as parents, receives the pension. If both parents are nominated, the pension is divided equally; otherwise, the entire pension goes to the nominated parent.