EPFO Early Pension Rule: Can you get a pension even before retirement? What does the rule say..

EPFO Rules: Every month, working employees contribute a fixed amount of their salary to EPFO. Pension benefits are given after retirement in EPFO. When the member reaches the age of 58 years, then according to the rules of EPFO, he can take a pension. To avail of the pension, the EPFO ​​member has to make continuous contributions for 10 years.

The pension is calculated based on service along with the contribution amount. EPFO ​​also gives the option of Early Pension to its members. This means that users can avail pension even before 58 years.

Early Pension Rules
According to the rules of EPFO, employees between 50 years and 58 years can select the option of Early Pension. Let us tell you that the pension amount gets reduced in taking a pension before 58 years. According to the rules, every year before 58 years you withdraw the pension money, your pension will be reduced by 4%. Understand it like this, if you have claimed for Early Pension at the age of 56, then you will get only 92% of the basic pension amount as pension. Every year, 4% of the amount i.e. 8% will be reduced in 2 years.

For an Early Pension Claim, you will have to fill out the Composite Claim Form and choose the option of Form 10D.

Pension will be increased 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 pension for two years after 58 years, then he is given the benefit of an additional pension at the rate of 4% every year. That is, at the age of 60, he gets a pension at an additional rate of 8%.

You can also withdraw money from the pension fund
If you have contributed to EPFO ​​for 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 complete withdrawal from the pension fund. At the same time, if you do a job again in the future, then you can take 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.

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