EPFO Pension: If you are employed and contribute to EPFO ​​every month, then you can not only deposit a good lump sum amount for retirement but can also arrange for a pension for yourself. EPFO ​​provides regular pension facilities to employees after retirement under the Employee Pension Scheme (EPS). However, there are some rules regarding pensions. Know which conditions are necessary to be fulfilled to get a pension from EPFO ​​and how much maximum pension you can get.

First, understand how much contribution is made in EPF and EPS.

12 percent amount of Basic + DA of employees working in the organized sector is deposited in EPF every month. The same amount is also deposited by the employer/company. However, the employer/company's share is divided into two parts. 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF every month.

To get a pension, these conditions have to be fulfilled.

According to the rules of EPFO, to get a pension facility, a contribution to EPS for a minimum of 10 years is necessary, that is, the employee must have worked for 10 years. At the same time, the maximum pensionable service is 35 years. In the slides below, know how much maximum pension you can get if you work for 35 years and contribute to EPS and by which formula this pension is calculated.

Understand how pension is calculated?

How much pension you will get in EPS, calculation is done on the basis of a formula. This formula is- EPS= Average salary x Pensionable service/ 70. Here average salary means basic salary + DA. Which is calculated based on the last 12 months. Maximum pensionable service is 35 years. The pensionable salary is a maximum 15 thousand rupees. Due to this, the maximum pension share is 15000x8.33= 1250 rupees per month.

What will be the maximum pension based on the formula?

If we understand the EPS pension calculation based on maximum contribution and years of service- EPS= 15000 x35 / 70 = 7,500 rupees per month. In this way, the maximum pension from EPS can be Rs 7,500 and the minimum pension can be up to Rs 1,000. You can also calculate your pension amount through this formula.

Keep this thing in mind in the case of pension.

This formula of EPS will be applicable to employees working in the organized sector after 15 November 1995. There are different rules for employees before this. .

Also, know this rule related to pension.

Under the rules of EPS, the employee is entitled to a pension at the age of 58 years. However, if he wants, he can get a pension even before 58. For this, there is also an option of Early Pension, under which pension can be received after 50 years. But in this case, the earlier you withdraw money from the age of 58, the lesser will be your pension at the rate of 4 percent for every year.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.