EPFO Pension: How much pension will you get after 10 years of service? Know how to know – StudyToper

The Employees’ Pension Scheme (EPS) run by the Employees’ Provident Fund Organization (EPFO) is one of the largest social security schemes in India. This scheme is designed to provide financial security to employees after retirement. Under EPS, employees receive monthly pension based on their service period and salary.

In this article, we will tell you how much pension EPFO ​​will give you every month and how you can know your pension amount after completing 10 years of service. We will also discuss the pension calculation formula, eligibility criteria, and other important information under EPS.

What is Employee Pension Scheme (EPS)?

Employee Pension Scheme (EPS) is a social security program managed by EPFO. This scheme was launched on 16 November 1995. The main objective of EPS is to provide regular income to organized sector employees after retirement.

Key Features of EPS

Eligibility Criteria for EPS

To receive pension under EPS, an employee must satisfy the following criteria:

• Must have completed at least 10 years of service
• Must have attained the age of 58 years
• Must be a member of EPFO
• Must contribute to EPS regularly

EPS pension calculation formula

The following formula is used to calculate pension under EPS:

Monthly Pension = (Pensionable Salary × Pensionable Service) / 70

Where:

• Pensionable salary: Average monthly salary during the last 60 months (maximum ₹15,000)
• Pensionable Service: Total period contributed to EPS (in years)

How to calculate your EPS pension

To calculate your EPS pension, you can follow the following steps:

1. Calculate your pensionable salary (maximum ₹15,000)
2. Calculate your pensionable service period
3. Substitute values ​​into the above formula
4. divide the result by 70

Example

Suppose:

• Your pensionable salary: ₹15,000
• Your pensionable service: 30 years

Monthly pension = (15,000 × 30) / 70 = ₹6,428.57

Types of EPS Pension

There are different types of pensions available under EPS:

1. Superannuation Pension: On attaining the age of 58 years
2. Early Pension: Between 50-58 years of age (with deduction)
3. Widow Pension: To the spouse of the member on his/her death.
4. Child Pension: To the children of the deceased member
5. Orphan Pension: To children on death of both parents
6. Disability Pension: In case of permanent disability

early pension option

If you want to take pension before the age of 58 years, you can opt for early pension. However, there are some conditions:

• Minimum age should be 50 years
• Must have completed at least 10 years of service
• Pension will be cut at the rate of 4% per year

early pension calculation example

Suppose you want to take pension at the age of 55:

• Basic Pension: ₹6,428.57
• Deduction: 3 years × 4% = 12%
• Early pension = ₹6,428.57 – (12% of ₹6,428.57) = ₹5,657.14

Ways to increase EPS pension

To maximize your EPS pension, you can take the following measures:

1. Longer service period: The longer the service period, the higher the pension you will get.
2. Higher salary: Higher salary will lead to higher contributions and higher pension
3. Regular Contribution: Ensure regular contribution to EPS
4. Higher Pension Scheme: If eligible, avail the Higher Pension Scheme

How to check EPS pension

To check your EPS pension, you can adopt the following methods:

1. EPFO Portal: Login to the official website of EPFO
2. UAN: Use your Universal Account Number (UAN)
3. SMS: Send SMS EPFOHO UAN ENG to 7738299899
4. Missed Call: Give a missed call to 011-22901406
5. EPFO Office: Visit your nearest EPFO ​​office

Important points related to EPS

1. Minimum Pension: The minimum monthly pension under EPS is ₹1,000
2. Maximum Pension: Currently the maximum monthly pension is ₹7,500
3. Pension commencement date: Pension starts from the age of 58 years or from the date of retirement, whichever is later
4. Pension Payment: Pension is credited on the 1st of every month
5. Life Certificate: Pensioners have to submit life certificate every year

Benefits of EPS Pension

1. Lifetime Income: Regular monthly income after retirement
2. Family Security: Pension to the family on the death of a member
3. Disability Cover: Pension in case of permanent disability
4. Tax Benefits: No income tax on EPS pension
5. Government contribution: Government contributes an additional 1.16%

Frequently Asked Questions (FAQs) related to EPS

1. Can I withdraw my EPS pension in lump sum?
   No, EPS pension is available only in monthly payment form.
2. Can I have more than one EPS account?
   No, only one EPS account is allowed per individual.
3. Can I defer my EPS pension?
   Yes, you can defer your pension till the age of 60 years.
4. Does EPS pension increase with Dearness Allowance (DA)?
   No, at present there is no provision for increase in EPS pension along with DA.
5. Can I transfer my EPS account to my new employer?
   Yes, you can transfer your EPS account to a new employer.

conclusion

The Employees’ Pension Scheme (EPS) is an important social security program for the working class in India. This scheme provides financial security after retirement and helps employees save for their future. By calculating your EPS pension correctly and contributing regularly, you can create a strong financial foundation for your retired life.

Remember, the longer the service period and the higher the contribution, the higher the pension you will get. Therefore, make sure to make regular contributions to EPS right from the beginning of your career and prepare better for your retired life.

Disclaimer: This article is for informational purposes only and should not be taken as legal or financial advice. EPFO rules and regulations may change from time to time. For accurate and updated information, please visit the official website of EPFO ​​or contact your nearest EPFO ​​office. For individual matters, be sure to consult a qualified financial advisor or EPFO ​​official.