EPFO: Worried about expenses after retirement? If you are also set to retire in 2026, find out how much monthly pension you will receive under the EPFO's EPS scheme and understand the underlying calculation behind it.

EPFO: For those working in the private sector, the biggest concern often revolves around their 'pension'—the financial support that serves as a lifeline during old age. However, if PF (Provident Fund) deductions are made from your salary, the EPFO's Employee Pension Scheme (EPS) effectively alleviates this concern to a significant extent.

If you are planning to retire in the year 2026, let's understand exactly how much money you can expect to receive in hand each month.

How is Your Pension Determined?

When PF deductions are made from your salary, the amount is split into two components:

EPF (Employees' Provident Fund): The portion of your salary contribution that is received as a lump sum payment upon retirement.

EPS (Employee Pension Scheme): A substantial portion of your employer's contribution is directed into this scheme, which you receive as a monthly pension.

Condition: To avail the benefits of this pension, you must have completed a minimum of 10 years of service.

An Easy Formula to Calculate Your Pension

You do not need an expert; you can calculate your pension yourself using this simple formula:

According to government regulations, the maximum salary ceiling for pension calculation purposes has been fixed at ₹15,000. This means that regardless of how high your actual basic salary may be, only the figure of ₹15,000 will be taken into account for the calculation formula.