What is Pension Contribution in EPF Passbook Statement?
What is Pension Contribution in PF Account? I have noticed that monthly contributions in PF passbook show the break-up of employer's contribution as EPF and EPS. What does Pension Contribution in EPF means?
As a employee of corporate organization, there are a few things one might want to think about the Employees Provident Fund (EPF). EPF is the principle conspire under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The plan is overseen under the aegis of Employees' Provident Fund Organization (EPFO).
Employee Provident Fund is commonly known as EPF or PF. It is available to all the employees as a retirement benefit scheme. It is a critical for retirement planning. Regularly on monthly basis, both the employee and employer contribute 12% each of the basic salary of employee contribution which is added in EPF account. The whole 12% of employee contribution goes towards EPF, however the 12% employer contribution is divided as a 8.33% in EPS (subject to the maximum of Rs.1250/-) and the rest 3.67% is of employer contribution goes into EPF.
Here EPS represent to Employee's Pension Scheme account. This is a Pension Contribution in EPF passbook statement. Employee's Pension Scheme offers benefits on widow pension, pension for nominees and disablement.