Retirement pension in India: How much pension will you get after 60 years through PF account? Know the rules and calculations of EPFO..

If you work and have a PF account, then this question must have come to your mind how much pension will you get after retirement? Especially if you work till the age of 60, then it is important to know what the rules of the Employee Provident Fund Organization (EPFO) say and how the pension is calculated. Let's understand it in simple language.

How is money deposited in the PF account?

If you work in the private sector, then 12% of your salary goes to your PF account. Your company also contributes the same amount, but 8.33% of it is deposited in the pension fund and the remaining 3.67% in PF.

What do the pension rules of EPFO ​​say?

According to EPFO, if you have contributed to the PF account for 10 years, then you become entitled to a pension. You can claim a pension at the age of 50, but 4% will be deducted every year.

If you wait till the age of 58, you will get the full pension.

If you do not claim a pension after 58 years and postpone it till 60 years, then there will be an increase of 4% every year i.e. at the age of 60 you will get 8% more pension.

Know the formula for pension calculation.

According to the current rules of EPFO, the maximum limit of pensionable salary is Rs 15,000. This means that every month 15,000 x 8.33/100 = Rs 1,250 can be deposited in your pension fund.

When the pension is calculated, it is calculated by this formula:

Pensionable salary x pensionable service / 70 = Monthly pension

How much pension will you get at the age of 60?

If you started working at the age of 23 and retired at the age of 58, then you worked for a total of 35 years. In this case:

Pensionable salary = Rs 15,000

Service period = 35 years

Pension will be:

15,000 x 35 / 70 = Rs 7,500 per month

If you claim a pension at the age of 60, then there will be an additional increase of 8% on it.

Know important things related to pensions.

The calculation of PF pension is based on your average salary for the last 60 months.

The longer the job period, the higher your pension will be.

So if you work for a long time and do not claim a pension till the age of 60, then it can prove to be a profitable deal for you. To get answers to questions related to pension, definitely understand the rules of EPFO ​​and keep reviewing your account from time to time.