EPFO Pension: 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 what is the maximum and minimum pension that 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 the last 12 months. Pensionable service means how many years you have worked.
35 years of contribution is necessary for maximum pension
The maximum pensionable service in EPFO is 35 years. The maximum pensionable salary is Rs 15,000. The contribution from this is Rs 15000×8.33= Rs 1250 per month. To understand EPS pension calculation based on maximum contribution- Suppose your average salary is Rs 15,000 and you have worked for 35 years. In this case EPS= 15000 x35 / 70 = Rs 7,500 per month. In this way the maximum pension will be Rs 7,500.
How much pension is there after contributing for 30 years?
If you contribute to EPS for 30 years, then the pension will be EPS= 15000 x30 / 70 = Rs 6,429.
How much pension after 25 years of contribution
If you contribute to EPS for 25 years, then your pension will be EPS = 15000 x25 / 70 = Rs 5,357.
How much pension is there after contributing for 20 years?
If you contribute to EPS for 20 years, then the pension will be EPS= 15000 x20 / 70 = Rs 4,286.
Minimum pension is Rs 1,000
Let us tell you that the minimum pension received from EPFO is Rs 1,000. In the year 2014, the central government had increased the minimum pension given to EPFO subscribers from Rs 250 to Rs 1,000 per month. However, in view of the rising inflation, trade unions and pensioners’ associations have been demanding for a long time that the minimum pension should be increased. But till now there has been no increase in it.
