In today’s time to secure their future EPFO (Employees Provident Fund Organization) of Pension scheme Wants to join EPFO’s pension scheme i.e. EPS (Employees’ Pension Scheme 1995 gives regular income after retirement, which keeps economic security in an elderly state. But many people have a question in the mind that if a gap comes in their job, then what 10 year pension Will the service be considered complete?
Or will their pension affect due to changing jobs and brakes? Let us know in this article how the EPFO pension is calculated in such a situation and what changes have been made in 2025. The EPFO pension has recently changed a big change.
Government on minimum monthly pension Increased Rs 7,000 Has done, which will provide relief to millions of pensioners. Also, dearness allowance (DA) will also be available, so that the pension amount will continue to increase from time to time. Now know how 10 years of service is counted when there is a gap in the job, what is the formula of pension calculation, and which people can avail this new system.
EPFO Pension 2025 new update:
According to EPFO rules, the employee has to complete at least 10 years of service to get pension under EPS. But it is not necessarily 10 years continuously. Even if your job breaks, your previous service will be counted, provided you have also used your UAN (Universal Account Number) in a new job. This adds your old and new service and the gap is not counted in the total service period 5.
Example:
If you worked for 5 years in a company, then took a break of 1 year and after that you worked for 5 years in another company, then your total service will be considered 10 years. During this time a 1 -year gap will not be added to your service count, but your previous service will be added, provided you have transferred to UAN 5.
EPFO Pension 2025
| point | Description |
|---|---|
| Name of the scheme | Employees Pension Scheme (EPS-1995) |
| Minimum pension | ₹ 7,000 per month + da |
| Eligibility | 10 years of service, 58 years old |
| Gap in job | Service connects (UAN transfer necessary) |
| Pension calculations | (Pensionable Salary X Service)/70 |
| Pensionable pay | Average salary of final 60 months |
| Applied date | From April 2025 |
| Method of payment | Online bank transfer |
EPFO Pension Eligibility 2025: Who can take advantage?
- The age of the employee should be at least 58 years.
- The EPS should complete at least 10 years of service (whether it is a break, but UAN transfer is necessary).
- Employees should be a registered member of EPFO.
- Have made regular contribution to EPS.
- If the service is more than 20 years, then you will get the benefit of 2 years extra service.
How will pension service be connected if there is a gap in the job?
- Whenever you join a new job, only give the old UAN number.
- The new company will deposit your EPF/EPS amount in the same account.
- Both old and new service will be added.
- Gap years will not be counted, only years of work will be added.
- If you worked for 5 years in a company, 2 years break, then 5 years in another company, then your service will be considered 10 years 5.
EPFO Pension Calculation Sources 2025
This formula is used to calculate EPFO pension:
Monthly Pension = (Pensionable Salary X Total Service)/70
- Pensionable Salary: The last 60 months average basic salary + da.
- Total Service: Total years of work in all companies (except gaps).
Example
If the last 5 -year average salary of an employee is ₹ 15,000 and has served a total of 12 years, then: Masmstation = 15,000 × 1270 = ₹ 2,571 Monthly Pension = \ FRAC {15,000 \ Times 12}
What are the changes?
- The minimum monthly pension has been increased to ₹ 7,000.
- Dearness Allowance (DA) will also be available, which will increase every 6 months according to CPI.
- More than 6.5 million pensioners will benefit.
- For the first time pension increase will be applicable from April 2025.
Comparison of pension hike
| Category | Earlier pension (approx) | New Pension (2025) | DA involved? | Total monthly benefits |
|---|---|---|---|---|
| Minimum pensioner | ₹ 1,000 – ₹ 3,000 | ₹ 7,000 | Yes | ₹ 7,000 + and |
| Widow pension | ₹ 1,500 – ₹ 2,500 | ₹ 7,000 | Yes | ₹ 7,000 + and |
| Disabled pension | ₹ 1,800 – ₹ 2,700 | ₹ 7,000 | Yes | ₹ 7,000 + and |
| Family beneficiary | ₹ 1,000 – ₹ 2,000 | ₹ 7,000 | Yes | ₹ 7,000 + and |
| High contributor | ₹ 3,500 – ₹ 4,500 | ₹ 7,000 – ₹ 8,500 | Yes | ₹ 7,000 + and |
EPFO Pension 2025: Application Process
- Login on the EPFO portal.
- Go to the ‘Pensioners’ section.
- Update KYC and bank details.
- Check EPS account balance and pension records.
- See the notification of the announcement of new pension.
- SMS/email will get information on eligibility.
Higher Pension Option: Opportunity to get more pension
- Following the Supreme Court order, now employees can also contribute 8.33% for more pension to their real salary (above ₹ 15,000).
- For this, a joint option form has to be filled.
- This may increase the monthly pension, but the EPF lump sum amount will be reduced.
Benefits of EPFO Pension 2025
- Economic Security: Regular income in elderly state.
- Health facilities: Pension increases easy to spend private treatment and medicines.
- Mental relief: Economic concern will be less.
- Better standard of living: Rent, electricity, ration etc. expenses will be easily fulfilled.
- Family security: The family gets pension on the death of the member.
Frequently asked questions (FAQs)
- Does the pension service break when there is a break in the job?
No, if the UAN has been transferred then the service is added, there is no worry about the gap 5. - Will you get pension if 10 years of service is not completed?
No, there is an alternative to withdrawal, not pension on service less than 10 years. - Will pension be taxed?
The monthly pension is taxable, but EPF Lumpmas is tax free. - Can retired employees also apply for more pension?
Yes, if they complete the eligibility and were EPFO members before 1 September 2014.
EPFO Pension 2025: Important things
- Service is added even when there is a break in the job, provided UAN transfer.
- The minimum pension is now ₹ 7,000 + DA.
- The last 60 months average salary and total service (except gap) are counted in pension calculations.
- A high contribution of 8.33% for higher pension is available.
- It is necessary to check the KYC update and pension records on the EPFO portal.
- Pension will be available from April 2025 at new rates.
Disclaimer: This information is based on government notifications, media reports and recent updates of EPFO. EPFO Pension 2025 arrangements to add 10 years service despite pension increase and job gap Real and applicableThe formula of pension calculation and the new minimum amount is according to government announcements. However, changes in the final rule and process are possible, so be sure to confirm EPFO’s official website or EPFO office of your area. This article is only for information, consult a specialist before any financial decision.
