If you are worried about the cost of pension after retirement, and wondering how you will live at the age of 60, then this news is for you. Do you know that even if you have worked in a company for 10 years, you will still get pension after retirement.
Talking about EPS pension run by EPFO, under this you will get a fixed pension every month. Let us know the complete information about this scheme. Let us tell you when you will get pension through this scheme, how much you will get and what is its eligibility.
Employees Pension Scheme (EPS)
The Employees’ Pension Scheme was launched by EPFO on 16 November 1995, under which a monthly pension scheme was created for employees working in the organized sector. Under this scheme, pension is determined on the basis of the number of days worked by the employee. Let us tell you that if you have worked in a company for 10 years and your PF is deposited there, then how much pension will you get monthly.
Eligibility for EPS
You will get the benefit of EPS i.e. Employee Pension Scheme only if you have worked in at least some organized sector and under this scheme you will get a monthly pension of at least Rs 1000. The demand to increase the minimum pension amount to Rs 7,500 per month has been going on for a long time. Apart from this, the benefit of this scheme will be available only after the age of 58 years and the most important thing is that the employee should have a PF account in which he has deposited money during employment.
EPF members contribute 12% of their basic salary to PF through EPFO, the company also contributes the same amount. The amount deposited by the company is divided into two parts, in which 8.33 percent goes to EPS and 3.67 percent goes to PF.
This much will be the pension!
Under EPS, the pension of employees is determined on the basis of the time they have worked and their salary. Here we will tell you the calculation of pension of an employee who has worked for 10 years and whose monthly salary is Rs 15 thousand.
Monthly Pension = (Pensionable Salary X Pensionable Service)/ 70
Pensionable salary = Average of your last 60 months salary
The employee’s pension is decided by this formula. Let us understand this through an example.
If you have worked in a company for 10 years and your pensionable salary is Rs 15,000, then you will get a monthly salary of Rs 2,143 from the age of 58.
