EPFO Pension: How much pension will you get after retirement? Understand the complete calculation with an easy formula..

Private job holders get the facility of EPFO ​​to avail of pension after retirement. Employee Pension Scheme (EPS) is a kind of retirement scheme. In this, the user has to deposit a fixed amount every month, on which interest is given by the government, and in this way, a huge fund is collected with the user till retirement.

In EPFO, the employee has to deposit 12 percent of his dearness allowance along with his basic salary. The amount deposited by the employee is deposited by the company as much as the amount deposited by the employee. Let us tell you that the contribution amount is divided into two parts by the company. 8.33 percent of the contribution amount goes to the Employee Pension Scheme (EPS) and 3.67 percent goes to EPF.

There is always a question in the mind of EPFO ​​​​users how much pension will they get under the EPS scheme after retirement? Today we will tell you about a formula with the help of which you can easily calculate the pension.

Before knowing the formula, let us tell you that to get the benefit of a pension, the employee has to contribute to EPS for at least 10 years. This means that it is necessary to work for 10 years. The maximum pensionable service is 35 years.

How to calculate pension
EPS= Average salary x pensionable service / 70

Average salary = Basic salary and dearness allowance.

Pensionable service = How many years have you been working?

Understand it like this if your average salary is Rs 15,000 and you have worked for 35 years, then you can easily find out with the help of the formula how much pension you will get.

According to the formula, average salary x pensionable service / 70 i.e. 15000 x35 / 70 = Rs 7,500 pension per month will be given.

Keep one thing in mind this formula is for employees working in the organized sector after 15 November 1995. The rules for employees before this are different.

Only employees up to 58 years of age get the benefit of a pension. But by selecting the option of Early Pension, they can get the benefit of pension even earlier. In Early Pension, one gets the benefit of a pension at the age of 50 years. However, in Early Pension, pension is available with a deduction of 4 percent.

Understand it like this if you select the option of Early Pension at the age of 56, then you will get only 92 percent of the basic amount as pension. Whereas, after 58 years you will get the normal pension amount.