Employee Pension Scheme: There is the facility of EPS (Employee Pension Scheme) for employees working in the organized sector. EPFO operates this pension scheme.
The maximum average salary (Basic Salary + DA) for EPS is Rs 15,000. In this, the maximum service for pension is 35 years. After the employee turns 58 years of age, he is entitled to pension.
To get pension, it is necessary to remain in regular job for at least 10 years. There is an option to take pension after 50 years and even before the age of 58.
On the death of the employee, the family gets pension. If the service history is less than 10 years, then they will get the option to withdraw the pension amount at the age of 58 years.
There is an easy formula for calculating pension in EPS. EPS = Average Salary x Pensionable Service/ 70. Here average salary means basic salary + DA. Which is calculated on the basis of last 12 months.
Remember that this EPS formula will be applicable to employees working in the organized sector after 15 November 1995. There are different rules for earlier employees.
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