EPFO: How much pension will I get from EPFO, here is the complete calculation and formula..

EPFO Pension: If you work for a company, especially a private one, you're likely familiar with the EPFO. The central government established this organization to provide financial assistance to employees, and it has become a great option for safe returns these days. Under the EPFO, employees deposit 12% of their income into their PF account, and a portion of this 12% is deposited as EPS, or pension fund, which employees receive upon retirement. Here's some basic information about it. Let us tell you how much pension you will receive after retirement from your company and how much money will be deposited in your account.

The pension provided through the EPFO ​​is called the EPS pension. Employees must serve for 10 years, and after the age of 58, they receive the pension amount. This amount is received monthly. Contributions are deposited into the EPS every month during the employee's employment period, and the pension is disbursed based on these contributions. Of the 12% you contribute to the PF, 8.33% is deposited in the Employees' Pension Scheme, while 3.67% is deposited in the Employees' Provident Fund.

What is the pension formula?
First, to qualify for a pension, an employee must have served for at least 10 years and continue contributing to the PF during their service. The EPFO ​​has developed a calculator to determine the pension amount. The formula is based on the pensionable salary and the service required for the pension, which is at least 10 years.

Now, regarding pensionable salary, pensionable salary is the average of your last 60 months' salary. The remaining period is the year of your contribution.

EPFO Pension Calculator Formula

Monthly Pension = (Pensionable Salary × Pensionable Service) / 70

This is how much you will receive.
Suppose an employee's pensionable salary is ₹15,000 and their pensionable service period is 10 years. According to the formula, they will receive a monthly pension of ₹2,143. Monthly pension (₹15,000 × 10) / 70 = ₹2,143.

This pension is calculated based on 10 years of service and ₹15,000. The remaining amount will be determined based on your salary and the number of years of contribution.

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