EPFO Pension Calculation: Most people working in the private sector worry about how to arrange for regular income in their old age. But if you are an EPFO member, you can get pension from EPFO from the age of 58. But for this, your contribution in EPS should be at least 10 years. However, the higher the contribution, the better the pension will be. Let us tell you how much maximum and minimum pension can be taken from EPFO, how much pension will be received on 20, 25 and 30 years of contribution and how this pension is calculated.
Pension is calculated by this formula
The formula used to calculate how much pension you will get from EPFO after retirement is- EPS= Average Salary x Pensionable Service/ 70. In this formula, average salary means basic salary + DA. Which is calculated on the basis of last 12 months. Pensionable service means how many years you have worked.
35 years of contribution is necessary for maximum pension
Maximum pensionable service in EPFO is 35 years. Pensionable salary is maximum 15 thousand rupees. From this, the contribution is 15000×8.33= 1250 rupees per month. If we understand EPS pension calculation on the basis of maximum contribution- Suppose your average salary is 15,000 rupees and you have worked for 35 years. In such a case EPS= 15000 x35 / 70 = 7,500 rupees per month. In this way the maximum pension will be 7,500 rupees.
How much pension on contribution for 30 years
If you contribute to EPS for 30 years, then EPS= 15000 x30 / 70 = 6,429 rupees pension will be generated.
How much pension on contribution for 25 years
If you contribute to EPS for 25 years, then EPS= 15000 x25 / 70 = 5,357 rupees pension will be generated.
How much pension on contribution for 20 years
If you contribute to EPS for 20 years, then EPS= 15000 x20 / 70 = 4,286 rupees pension will be generated.
Minimum pension is 1,000
Let us tell you that the minimum pension received from EPFO is 1,000 rupees. In 2014, the central government had increased the minimum pension for EPFO subscribers from Rs 250 to Rs 1,000 per month. However, in view of rising inflation, trade unions and pensioners’ associations have been demanding for a long time that the minimum pension be increased. But there has been no increase in it so far.
