EPFO Pension: Have you ever wondered that if you leave the service after working for 10 years, how much money will you get as pension? Today we will know about this in detail.
EPFO Pension: If you are a working person, then you must know about EPFO. In the company where you work, a fixed amount is deposited in the Provident Fund on the basis of your salary, a part of which is also for pension. Which is decided by calculating the total amount deposited for 10 years or till the time of retirement. On that basis, the person gets monthly pension. Have you ever wondered that if you leave the service after working for 10 years, how much money will you get as pension? Today we will know about this in detail.
What does the rule say?
First let us understand the rule of EPFO. The minimum service period for pension eligibility is 10 years. If you leave the job in less time than this, then you will not be able to avail its benefits. Keep in mind that if you work for 10 years or more, then after 58 years you can apply for pension, which ranges from Rs 1,000 to Rs 7,500.
What is the scale of EPS?
If someone wants to avail EPS pension, then he has to follow some rules. He should contribute continuously to the EPS scheme during his entire tenure. EPF members contribute 12% of their basic salary to the Provident Fund regulated by EPFO, which is divided into two parts – 8.33% is allocated to EPS, while 3.67% goes to the EPF scheme.
Since 2014, the Center has fixed the minimum pension under EPS-1995 at Rs 1,000 per month. However, there has been a long-standing demand to increase this pension to at least Rs 7,500 per month.
How is the calculation done?
Monthly pension:
(Pensionable salary x pensionable service) / 70
Pensionable salary:
Average of salary of last 60 months (maximum Rs 15,000)
Pensionable service:
Total years of service contributed to EPS
For example, if the pensionable salary of an employee is Rs 15,000 and pensionable service is only 10 years, then the monthly pension will be:
Monthly pension = (Rs 15,000 x 10) / 70 = Rs 2,143
That is, if a person completes 10 years of service and his salary is Rs 15,000, then he will get a monthly pension of Rs 2,143 at the age of 58.
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