EPFO Pension Calculator: This is the formula that decides pension! Know how much you can earn

If you are a salaried person and contribute to EPFO ​​every month, then you must know about its Employee Pension Scheme. In common language, it is called EPS. EPS is the scheme through which you get pension after retirement. This pension is calculated under a certain formula. If you are also a salaried person, then you must know how much maximum pension you can get from EPFO.

Not everyone gets pension from EPFO. If you want pension, then you have to contribute to it for at least 10 years. On the basis of your total duration of job and contribution, it is decided how much pension you will be given.

The formula to calculate the pension received from EPFO ​​is- EPS= Average Salary x Pensionable Service/ 70. Here average salary means basic salary + DA. Which is calculated on the basis of the last 12 months. The maximum pensionable service is 35 years. The maximum pensionable salary is Rs 15,000. This makes the maximum pension share 15000x8.33= Rs 1250 per month.

If we understand the EPS pension calculation on the basis of maximum contribution and years of service- EPS= 15000 x35 / 70 = Rs 7,500 per month. In this way, you can get a maximum pension of up to Rs 7,500 from EPS.

The minimum pension can be up to Rs 1,000. You can also calculate your pension amount through this formula.

Experts believe that the minimum pension of Rs 1,000 that is being received from EPFO ​​is insufficient to meet the basic needs in today's time of inflation. Therefore, there has been a demand to increase it for a long time.

Under the rules of EPS, the employee is entitled to pension at the age of 58 years. However, if he wants, he can get 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 pension you will get will be reduced by 4 percent for every year.

Let us tell you that 12 percent 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. But the employer / company's share is divided into two parts. 8.33% goes to the Employees' Pension Scheme (EPS) and 3.67% goes to EPF every month.