epfo pension
EPFO Pension: If you work in a company. Especially if you work in a private company, you will definitely be familiar with EPFO. The Central Government has created this organization to provide financial help to the employees and in recent times it has become an excellent option as a safe return. Under EPFO itself, employees deposit 12 percent of their income in the PF account and out of that 12 percent, some part is deposited in the form of EPS i.e. pension fund. Which the employees get after retirement. Here is some basic information about it. Let us tell you how much pension you will get from your company after retirement. How much money will come into the account?
The pension we get like EPFO is called EPS pension. For this, it is necessary for the employees to work for 10 years and after 58 years the employees get the pension amount. This amount is received every month. Contribution to EPS is deposited every month during the period of employment. Pension is given on that basis. The 12 percent you put in PF. Of that, 8.33 percent is deposited in the Employees’ Pension Scheme, while 3.67 percent is deposited in the Employees’ Provident Fund.
What is the pension formula?
First of all, to get pension, the employee has to serve for at least 10 years and he has to keep depositing money in PF during his service. EPFO itself has made a calculator to calculate how much pension will be received. The formula of which is determined by pensionable salary and service for pension which is at least 10 years.
Now what is pensionable salary? Pensionable salary is the average of your last 60 months’ salary. The remaining period is the year of your contribution.
Also read- EPFO Pension: Will private employees get ₹7,500 pension? The government replied in the Parliament
epfo pension calculator formula
Monthly Pension = (Pensionable Salary × Pensionable Service) / 70
you will get this much
Suppose the pensionable salary of an employee is Rs 15,000 and his pensionable service period is 10 years, according to the formula he will get a monthly pension of Rs 2,143. Monthly pension (Rs 15,000 × 10) / 70 = Rs 2,143.
This pension was based on 10 years of service and Rs 15,000. The rest will be your salary and the year of contribution. This amount will be decided on that basis.