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EPFO Pension: Private sector employees receive a pension after retirement under the EPFO's EPS scheme. Every month, a portion of your employer's EPF contribution is also deposited into the EPS. This is the pool from which you receive a monthly pension after retirement. PF money is deducted in two parts: one for EPF and the other for EPS. But the question is, after how many years do private sector employees start receiving a pension under EPS?

Unlike your PF balance, which you can see in your passbook and which earns interest every year, the pension component works under fixed rules. The amount you receive depends on a formula, years of service, and salary limits, not on market returns. In recent years, changes in EPFO ​​notifications, salary limits, and court orders have made it even more complex. This makes it difficult for members to understand how much money they will actually receive.

EPFO Pension: At what age do private sector employees receive a pension?
The main eligibility rule for the EPS pension is simple. To receive a lifelong monthly pension (EPFO Pension), you must complete at least 10 years of pensionable service and reach the age of 58. Here, "pensionable service" means the total number of years for which contributions have been made to the EPS by your employers, provided you have transferred your PF and not withdrawn it.

From the employer's side, 8.33 percent of your salary, as per the notified wage ceiling, goes into the EPS. The rest goes into your EPF. Because the EPS component is limited by the wage ceiling, there is a hard limit on how much pension benefit can accumulate, regardless of how high your actual salary is.

You can choose to start your pension after the age of 50, but this will be considered an early pension, and the amount will be permanently reduced by a fixed factor. You can also defer it beyond 58 years (up to 60 years) for a slightly higher pension. Will I get a pension if I leave my job before 10 years?
If you leave your job before completing ten years under the EPS scheme, you will not be eligible for a monthly pension. Instead, you will receive a one-time withdrawal benefit. This is a small lump-sum amount calculated using a service table issued by the EPFO. This table determines a factor based on your completed years of service and multiplies it by your pensionable salary.

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