EPS Pension Calculator: Current age 30, basic pay Rs 25,000, pensionable service 28 years; what will be monthly pension?
If your current age is 30, your basic pay is Rs 25,000, and you have 28 years of pensionable service, let's calculate the estimated monthly EPS pension at age 58.
Employees’ Pension Scheme (EPS) benefits employees post retirement. It is a scheme introduced by the Employees' Provident Fund Organisation (EPFO) on November 19, 1995. Government employees who work for at least 10 years are eligible for pension post retirement. Plus, workers in the organised sector who are part of the Employees' Provident Fund Organisation (EPFO) can receive a pension when they turn 58. If your current age is 30 years, and the basic pay is Rs 25,000, let’s find out what will be your estimated monthly pension after 28 years of pensionable service.
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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 employee pension scheme?
Employees’ Pension Scheme (EPS) provides a pension for eligible employees after retirement. It was launched in 1995 to help employees get pension post retirement. 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.
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
Monthly contribution: The 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).
EPS nomination
Eps nomination is a process in which the account holder can choose a person or people to receive the pension benefits from EPS. Nominees can be family members, such as a spouse, children, or dependent parents. If the member has no family, they can nominate anyone.
Can one get EPS pension before 58?
You can receive a reduced pension from EPS before you turn 58, but you must meet certain requirements. You must be at least 50 years old and have worked for at least 10 years.
Can one get increased pension?
Employees who are members of the EPS-95 and are in service or retired after 2014 can opt for a higher pension by filing a joint option application and submitting it to the regional PF commissioner.
How is EPS money calculated?
The formula for calculating the EPF pension is:
Monthly pension amount = (Pensionable Salary x Pensionable Service) / 70.
Minimum and maximum EPS pension
The minimum pension one is allowed to get is Rs 1,000, and the maximum is Rs 7,500.
Monthly pension if your current age is 30, and pensionable service is 28 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.
Calculation
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 28 years. (Pensionable Salary X Pensionable Service)/70 = (15,000x28)/70 = Rs 6,000.