EPFO Pension Calculator

What is EPS?

EPS (Employees’ Pension Scheme) is a retirement benefit provided by the Employees’ Provident Fund Organisation (EPFO) for employees in the organized sector. It ensures a monthly pension after retirement, based on your salary and years of service.

🧮 EPS Pension Formula

The pension amount is calculated using the following formula:

EPS Pension = (Average Salary × Pensionable Service) / 70

• Average Salary: This is the average of your last 12 months’ Basic + Dearness Allowance (DA). It is capped at ₹15,000.
• Pensionable Service: The total number of years you contributed to EPS. Maximum allowed is 35 years.

Example:

If your average salary is ₹15,000 and you have 35 years of service:

EPS = (15,000 × 35) / 70 = ₹7,500/month

💸 Contribution Breakdown

Every month:

• Employee contributes 12% of Basic + DA to EPF.
• Employer contributes 12% as well, but it is split:
  • 8.33% goes to EPS
  • 3.67% goes to EPF

⏳ Early Pension Option

You can opt for pension from age 50, but it comes with a reduction:

• 4% reduction per year before the age of 58.
• For example, if you retire at 54, your pension will be reduced by 16%.

🧰 How to Use the EPFO Pension Calculator

This calculator helps you estimate your monthly pension based on your salary and service years.

Steps:

1. Enter your average monthly salary (Basic + DA). Maximum allowed is ₹15,000.
2. Enter your total years of pensionable service. Maximum allowed is 35 years.
3. Click “Calculate Pension”.
4. The calculator will display your estimated monthly pension.

📊 Minimum & Maximum Pension

• Minimum Pension: ₹1,000/month
• Maximum Pension: ₹7,500/month

📝 Final Thoughts

The EPFO pension is a crucial part of retirement planning for salaried employees. While the current pension amounts may seem modest, understanding your eligibility and contributions can help you plan better. Use the calculator to get a quick estimate and make informed decisions about your retirement.