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EPFO Pension: If you are a private employee and have served for 10 years, you are eligible for a pension. Subscribers to the Employee Provident Fund receive pension benefits under the Employee Pension Scheme (EPS). Private employees are covered under the EPF. A portion of an employee's salary is deposited into their EPF account every month. The employer also contributes an equal amount to the employee's EPF account every month. The employer contributes 8.33% of the employee's basic salary plus DA to the EPS. The maximum limit is ₹15,000.

After retirement, the employee receives a monthly pension from the funds deposited in their EPS account. EPS is under the EPFO. An employee receives a pension only when they retire at the age of 58, subject to a minimum of 10 years of service. An employee is still entitled to a pension at age 50, but the amount will be less than the actual pension. If an employee leaves the job before completing 10 years, they will not receive a monthly pension. The money deposited in their EPS account will be given to them after retirement.

Pension Amount Determined by a Formula
An employee's pension amount is determined using a formula. Pensionable salary is multiplied by pensionable service. The result is then divided by 70. Pensionable salary is the last 60 months of basic salary. Pensionable service is the total number of years an employee has worked. This means that the more years an employee works, the higher their pension will be.

How much pension will you receive after serving for 10 years?
EPFO Pension Formula: (Pensionable Salary × Pensionable Service) / 70. Pensionable salary is the average of your basic salary and dearness allowance (DA) for the last 60 months, and pensionable service is the number of years you have served. The minimum monthly pension is ₹1,000.

Pensionable Salary = ₹15,000
Pensionable Service = 10 Years
Monthly Pension = (₹15,000 × 10) / 70
Monthly Pension = ₹150,000 / 70
Monthly Pension = ₹2,141 per month

Family Pension Upon Pensioner's Death
If a private employee who is a member of the Employees' Pension Scheme (EPS) dies, their family is entitled to receive a monthly family pension (widow/widower, child, or orphan pension).

According to information on the EPFO ​​website, to claim a family pension, family members or nominees must apply to the Employees' Provident Fund Organization (EPFO) by submitting a composite claim form or Form 10D along with the required documents through their last employer.

Family pension is a pension that is paid to an employee's wife after their death. Its purpose is to provide financial security to the employee's family. Experts recommend that employees try to maintain their service period. This means that if an employee changes jobs, they should transfer their EPF funds to the new employer instead of withdrawing them. This adds to the years of service with the previous employer, increasing the total service period.

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