Can you take pension from EPFO even before retirement? What does the rule say

New Delhi. EPFO Rules: Every month, working employees contribute a fixed amount of their salary to EPFO . EPFO provides pension benefits after retirement. When a member reaches the age of 58, he can take a pension as per EPFO rules. To avail of a pension, an EPFO member must continuously contribute for 10 years.

Pension is calculated on the basis of service along with contribution amount. EPAO also gives its members the option of early pension. This means that users can avail of a pension even before 58 years of age.

Early Pension Rules

According to EPFO rules, employees between 50 and 58 years can choose the option of Early Pension. Let us tell you that the pension amount reduces if you take a pension before 58 years. According to the rules, for every year before 58 years of age, the pension amount will be reduced by 4%. Understand it this way: if you claim an early pension at the age of 56, then you will only get 92% of the basic pension amount as a pension. You will get 4% reduction every year, i.e. 8% reduction in 2 years.

Pension will increase at the age of 60

If an employee does not take the benefit of a pension even after 58 years and takes a pension after 60 years, then he gets an increased pension. According to the rules of EPFO, if an employee stops their pension for two years after 58 years, then he is given the benefit of an additional pension at the rate of 4 per cent every year. That is, at the age of 60, he gets a pension at the rate of 8 per cent extra.

You can also withdraw money from the pension fund

If you have contributed to EPFO for a period of less than 10 years, then you will not get the benefit of a pension. In such a situation, the question arises: what will happen to the pension fund? The answer is that if you do not want to do the job, then you can make a full withdrawal from the pension fund. At the same time, if you do a job again in the future, then you can get a pension scheme certificate. On joining the job again, with the help of this certificate, you have to link the previous pension account to the account of the new job. Now this will reduce the duration of the job by 10 years, and you will also be entitled to a pension.