EPFO Pension EPFO users get the facility of pension after retirement. If you also invest in EPFO then this article is for you. In this article, we will tell you about a formula with the help of which you can easily calculate how much pension you will get after retirement. Apart from this, we also know about some rules related to pension.
Private job holders get the facility of EPFO to avail pension after retirement. Employee Pension Scheme (EPS) is a type of retirement scheme. In this, the user has to deposit a fixed amount every month, on which interest is given by the government and in this way a huge fund is collected with the user till retirement.
In EPFO, the employee has to deposit 12 percent of his dearness allowance along with his basic salary. The amount deposited by the employee is deposited by the company. Let us tell you that the contribution amount is divided into two parts by the company. 8.33 percent of the contribution amount goes to the Employee Pension Scheme (EPS) and 3.67 percent goes to EPF.
There is always a question in the mind of EPFO users that how much pension will they get under the EPS scheme after retirement? Today we will tell you about a formula with the help of which you can easily calculate pension.
Before knowing the formula, let us tell you that to get the benefit of pension, the employee has to contribute to EPS for at least 10 years. This means that it is necessary to work for 10 years. The maximum pensionable service is 35 years.
How to calculate pension
EPS= Average salary x Pensionable service/ 70
Average salary= Basic salary and dearness allowance.
Pensionable service= How many years have you been working.
Understand it like this, if your average salary is Rs 15,000 and you have worked for 35 years, then you can easily calculate how much pension you will get with the help of a formula.
According to the formula, average salary x pensionable service / 70 i.e. 15000 x35 / 70 = Rs 7,500 pension per month.
Keep one thing in mind that this formula is for employees working in the organized sector after 15 November 1995. The rules are different for employees before this.
Keep these rules in mind
Only 58-year-old employees get the benefit of pension. But by selecting the option of Early Pension, they can get the benefit of pension even earlier. In Early Pension, one gets the benefit of pension at the age of 50. However, in Early Pension, pension is available with a deduction of 4 percent.
Understand it like this that if you select the option of Early Pension at the age of 56, then you will get only 92 percent of the basic amount as pension. At the same time, after 58 years you will get the normal pension amount.
