Both the employer and employee contribute 12% each of the employee’s pay towards EPF. However, the employee’s entire share is contributed towards EPF, 8.33% of the employer’s share goes towards the Employees’ Pension Scheme (EPS) and 3.67% goes towards EPF contribution every month.
In order to be eligible for availing benefits under the Employees’ Pension Scheme (EPS), an individual has to fulfil the following criteria:
- He should be a member of EPFO
- He should have completed 10 years of service
- He has reached the age of 58
- He can also withdraw his EPS at a reduced rate from the age of 50 years
- He can also defer his pension for two years (up to 60 years of age) after which he will get a pension at an additional rate of 4% for each year