EPS Pension Calculator: Current age 28, basic pay Rs 25,000, pensionable service 30 years; what will be monthly pension?
Let’s find out what will be your EPS monthly pension if your current age is 28, your basic pay is Rs 25,000 and your pensionable service is 30 years.
The Employees’ Pension Scheme (EPS), managed by the Employees’ Provident Fund Organisation (EPFO), provides pension benefits to employees upon retirement. The monthly pension under EPS is determined by factors such as the employee’s age, pensionable service, and pensionable salary. Here, we will find out the monthly pension of individuals aged 28 with a basic pay of Rs 25,000, and a service tenure of 30 years.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is Employees’ Pension Scheme (EPS)?
Employees’ Pension Scheme (EPS) provides a pension for eligible employees after retirement. It was launched in 1995 to help employees get pension post retirement.
Employees’ Pension Scheme
All employees eligible for the EPF scheme automatically qualify for EPS. A minimum service period of 10 years by the age of 58 is mandatory for availing pension benefits.
Minimum and maximum EPS pension
The minimum pension one is allowed to get is Rs 1,000, and the maximum is Rs 7,500.
Eligibility criteria for EPS
An individual should be an EPFO member
An individual must have at least 10 years of service
An individual must be at least 50 years old for early pension, or 58 years old for regular pension.
Responsibilities of employers
The monthly contribution of an employer to the EPS is 8.33 per cent of the employee's basic pay and dearness allowance. The employer also contributes 3.67 per cent of the employee's pay to the Employees' Provident Fund (EPF).
Can one get EPS pension before 58?
One can receive a reduced pension from EPS before they turn 58, but they must meet certain requirements. They must be at least 50 years old and have worked for at least 10 years.
What is the formula for calculating the Pension amount?
Monthly pension amount = (Pensionable Salary x Pensionable Service) / 70.
EPS Pension: Conditions
EPS Pension: Conditions
It’s essential to note that the pensionable salary is calculated at a wage ceiling of Rs 15,000 under EPS rules, regardless of higher earnings. The total contribution, including voluntary and mandatory, cannot exceed Rs 15,000 per month.
Monthly pension if your current age is 28, and pensionable service is 30 years
The monthly pension amount you receive depends on your pensionable salary and service. The average salary used in the formula is the average of your basic salary plus your DA for the last 12 months.
EPS Pension: Calculations
Contributing to the (present) wage ceiling of Rs 15,000. Even if someone's basic salary and dearness allowance is Rs 25,000, their EPS pension will be calculated at Rs 15,000 salary. Individuals may get about Rs 6,000 as a pension if the service is 30 years. (Pensionable Salary X Pensionable Service)/70 = (15,000x30)/70 = Rs 6,430.