EPFO pension calculator: If someone has worked for only 10 years and contributed to the Provident Fund every year, then he is entitled to get pension after retirement. Obviously, the pension amount can be increased by working for more years.
EPFO Pension Calculator: : Employee Provident Fund Organization (EPFO) also runs the Employee Pension Scheme for the betterment of employees, which is one of the largest social security programs in India. Under this scheme, employees get monthly pension based on their service period and salary. EPS was launched on 16 November 1995. The purpose of this scheme is to provide regular income to the employees of the organized sector after retirement.
Key features of EPS
The minimum service period to get pension is 10 years. That is, if you are an EPF member and have worked for 10 years, then you are entitled to get pension under this scheme.
Minimum monthly pension: Rs 1000
Maximum monthly pension: Rs 7500
Eligibility criteria for EPS
It is necessary to fulfill some eligibility conditions to get EPS pension. For example, to get EPS pension, the employee has to work for at least 10 years. Apart from this, the employee will get the benefit of this scheme only after the age of 58 years. The employee should be a registered member of EPFO ​​​​and it is also necessary that he has contributed continuously to the EPS scheme during his job.
EPF members contribute 12% of their basic salary to the Provident Fund every month and the company also contributes the same amount to their PF account. The company’s contribution is divided into two parts, out of which 8.33% goes to the employee’s pension scheme, and 3.67% goes to the employee’s Provident Fund.
Since 2014, the central government has fixed the minimum pension at Rs 1000 per month under EPS-1995. However, for a long time there has been a demand to increase the minimum pension to Rs 7500 per month.
If an employee works for 10 years, let’s know how much pension he can expect to get.
EPS Pension Calculation Formula
This formula is used to calculate monthly pension:
Monthly pension = (Pensionable salary × pensionable service) / 70
Pensionable salary = average of your last 60 months’ salary
Pensionable service: The number of years contributed to EPS during service.
For example, suppose an employee’s pensionable salary is Rs 15,000 and pensionable service is only 10 years, then his monthly pension will be:
Monthly pension (Rs 15,000 × 10) / 70 = Rs 2,143
That is, if someone has worked for only 10 years and contributed to the Provident Fund every year, then he is entitled to get pension after retirement. Obviously, the pension amount can be increased by working for more years.
Types of EPS pension
Superannuation Pension: The benefit of this pension is available on completion of 58 years of age.
Early Pension: Usually EPFO ​​​​gives pension from the age of 58, but if a member fulfills the conditions for getting pension and he retires before the age of 58, then he can claim early pension even after the age of 50. But in early pension, the pension is given to EPFO ​​​​members by reducing it.
Widow Pension: If an EPFO ​​​​member dies untimely, then EPFO ​​​​gives widow pension every month to the partner of the deceased member.
Child Pension: This is a pension for the children of the deceased member. Under EPS 95, two children of the deceased member are also entitled to get monthly pension till the age of 25 years.
Orphan Pension: If both an EPFO ​​member and his/her spouse die, then in such a case, their two children below the age of 25 years are entitled to get orphan pension.
Disability Pension: Under the rules of EPS, disability pension is given to those members who become permanently or completely disabled during their service. In such cases, the condition of age and contribution to the pension fund for 10 years does not apply. That is, if a member has contributed to EPS even for two years, then he is entitled to get this pension.
Early Pension Option
Employees who want to take pension before the age of 58 can choose the option of Early Pension under the EPS scheme. But for early pension, they have to fulfill some conditions. Their age should be at least 50 years and they should have completed at least 10 years of service. But keep in mind that in early pension, the pension given to EPFO ​​members is reduced by 4 percent every year.
Ways to increase EPS pension
To increase your EPS pension, you have to focus on the methods with the help of which it is possible to do so.
- You can also increase your pension by doing long service. So the more years you work, the higher will be your pensionable service and pension amount.
- Higher salary means more pensionable salary, which increases the pension.
- Continue making regular contribution to the EPS scheme, because only regular contribution will increase your pension over time.
One more thing, if you are eligible, you can choose the option of Higher Pension Scheme, which will help you increase your monthly pension amount. By adopting these methods, you can increase your pension and make life easier after retirement.
