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EPFO Pension: Lakhs of employees working in the private sector often keep asking the same question – Brother, will our pension come, right? Will you get a good salary like the government employees or will you just get a nominal salary? Don’t worry friends, if you are connected to EPF (Employees’ Provident Fund) then you will definitely get pension every month under the Employees’ Pension Scheme (EPS-95). And that too very good!

Every month, money is deducted from your salary in EPF, the same amount is also deposited by your employer. But the special thing is that out of the 12% share that goes to the employer, 8.33% goes directly to the EPS Pension Fund. Currently this 8.33% calculation is only up to ₹ 15,000 basic + DA, even if your salary is in lakhs.

How many years will one have to work to get pension?

The most important rule is that you will have to complete at least 10 years of service. If service is less than 10 years, monthly pension will not be given, rather the entire deposited amount will be given in lump sum. But if you complete 10 years, your monthly pension is guaranteed for life!

The age to start pension is 58 years. If you want, you can take it from the age of 50, but you will get a little less (reduced pension).

How much pension will be made after 30 years of service? see the complete calculation

EPFO’s pension formula is very simple:

Monthly pension = (pensionable salary × total service years) ÷ 70

Now suppose your pensionable salary (Basic + DA) is ₹ 15,000 and you have worked for 30 years. The calculation will be like this:

(15,000 × 30) ÷ 70 = ₹6,428 per month

That means ₹ 6,428 directly into your account every month after retirement! If your last Basic + DA was more than this (say ₹25,000 or ₹50,000) this amount will still be considered due to the cap of ₹15,000.

Family will get family pension after death

If the employee dies, his wife, children or orphans will continue to receive family pension. For this, Form 10D or Composite Claim Form has to be filled and submitted to the EPFO ​​office through the last company. Family pension is also a very good amount, which is a major part of the pension received by the employee.

So friends, now I understand that the pension of those doing private jobs is also amazing! Just complete 10 years of service and wait till 58 years – after that enjoy your pension comfortably!