Big news for EPFO members. If you’ve been employed at a company for a decade, you’ll be eligible for a pension from that company upon retirement. We’re here to share information about the EPFO’s EPS pension, which provides a fixed monthly pension. Let’s dive into the details of this scheme, including when you can expect to receive your pension, how much it will be, and the eligibility criteria.
The Employees’ Pension Scheme was introduced by the EPFO on November 16, 1995. The pension amount is based on the total number of days the employee has worked.
When will you receive your pension?
Additionally, benefits from this scheme are available only after reaching the age of 58, and it’s crucial that the employee has a PF account with contributions made during their employment.
EPF members contribute 12% of their basic salary to the PF through the EPFO, with the employer also making a contribution. This employer contribution is split into two parts: 8.33% goes to the EPS, and 3.67% goes to the PF. Under this scheme, you can expect a minimum monthly pension of Rs 1,000. It’s worth noting that there has been a long-standing demand to increase the minimum pension amount to Rs 7,500 per month.
How much pension will you get
Monthly Pension= (Pensionable Salary X Pensionable Service)/ 70
Pensionable salary = Average of your last 60 months’ salary
According to this formula, the pension of the employee is decided. Suppose your salary is 15,000, then let’s know what amount you will get after 10 years.Monthly pension = (15,000 × 10) / 70 = Rs 2,143.