The
Employees’ Provident Fund Organisation (EPFO) provides a pension to private sector employees under the
Employees’ Pension Scheme (EPS). This scheme is specifically designed to provide financial security to employees in the private sector after retirement, or to their
surviving family members in the event of the employee’s death.
Pension for the Employee’s Family
1. Widow Pension
· If a private sector employee covered under EPS passes away, his
wife is eligible for a monthly widow pension.· This is provided
irrespective of whether the employee had retired or was actively employed at the time of death.
2. Amount of Pension
· The
pension amount depends on several factors:o
Salary of the employee at the time of retirement or deatho
Number of years of service under EPS· EPFO calculates the pension using a
standard formula:Pension=Pensionable Salary×Pensionable Service70Pension = \frac{Pensionable\ Salary \times Pensionable\ Service}{70}Pension=70Pensionable Salary×Pensionable Service· The
minimum widow pension is fixed at
₹1,000–₹1,250 per month, depending on EPFO rules, while higher service and salary result in higher pensions.
Eligibility Criteria for Widow Pension
1. The employee must have
contributed to EPS for at least
10 years.2. The widow must be legally married to the deceased employee.3. The widow must apply to EPFO using the
nomination form or by submitting the death certificate.Note: If there are minor children,
child pension may also be available until they reach 25 years of age.
How the Pension Is Deposited
· Once the application is approved, the
monthly pension is credited directly into the widow’s bank account linked to EPFO.· EPFO ensures
timely transfers on a monthly basis.· Any changes in bank account or personal details must be updated with EPFO to avoid
payment delays.
Additional Benefits for the Widow
·
Commutation Option: A portion of the pension can be taken as
lump sum in certain cases.·
Survivor Pension Continuation: If the widow remarries, the pension rules may vary depending on EPFO policies.·
Insurance Coverage: Some employees also have
life insurance under EPF-linked schemes, which can provide additional financial support.
Bottom Line
Under the
EPFO Employees’ Pension Scheme (EPS), a private sector employee’s wife
is entitled to a monthly widow pension after his death. The exact amount depends on the employee’s
salary, years of service, and EPS contribution, and the pension is
directly deposited into her bank account for regular financial support.The EPS ensures that the
family of a deceased employee is financially protected, offering peace of mind even after an unexpected loss.
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