After 10 years of job, you can get how much pension from EPFO ​​Pension Scheme, know here

Employees Pension Scheme (EPS) being run by Employees Provident Fund Organization (EPFO) is an important social security scheme for employed people. The scheme is designed to provide economic security after retirement. But do you know that you can take advantage of this scheme even after doing just 10 years of job?

In this article, we will know how much pension you can get under the EPFO ​​Pension Scheme after 10 years of job and how it is calculated. Also, we will also discuss the eligibility, benefits and other important information of this scheme.

EPFO Pension Scheme: Pension on 10 years service

How is pension calculated?

EPFO pension is calculated using a simple formula:

Pension Formula: (Pensionable Salary × Pensionable Service) / 70

In this formula:

• Pensionable Salary: The average basic salary and dearness allowance (DA) of the last 60 months, which is limited to a maximum of ₹ 15,000.





• Pensionable Services: Total Services Period (Complete in the nearest year).





• Division from 70: Divider prescribed according to EPS rules.

Understand with examples

Suppose an employee retires at the age of 58 after 10 years of service and his pensionable salary is ₹ 15,000:

Pension = (₹ 15,000 × 10) / 70 = ₹ 2,142.86

Thus, he will get a pension of ₹ 2,142.86 every month.

EPFO Pension Scheme Eligibility

To get EPS pension benefits, an employee must meet the following criteria:

• Must be a member of EPFO.





• Have completed at least 10 years of service.





• Retirement age of 58 years has reached.





• If you retire between the ages of 50-57, you can opt for low pension.





• Have not removed your EPS fund before completing 10 years.

EPFO Pension Types

Various types of pension are available under EPS:

1. Supernue Pension: On completion of 58 years of age.





2. Early pension: Between the age of 50–58 years (with cuts).





3. Widow Pension: For the spouse of the deceased member.





4. Child Pension: For the children of the deceased member.





5. Orphan pension: When both parents have died.





6. Disability Pension: In case of permanent disability.

EPFO Pension Benefits

The following are the major benefits of Employees Pension Scheme:

• Source of regular income after retirement.





• Pension option even before the age of 58 (with deduction).





• Financial assistance to the family in case of death.





• Life pension in the event of disability.





• Government operated and controlled, hence safe investment.

How to calculate pension?

Follow these steps to calculate your possible pension:

1. Set pensionable salary:
   
   
   
   • Calculate the average salary (original + DA) of the last 60 months.
   
   
   
   
   
   • The maximum pensionable salary is ₹ 15,000 (even if the actual salary is high).
   
   
   
   





2. Calculate pensionable service:
   
   
   
   • Calculate the total years of contribution to EPS.
   
   
   
   
   
   • The service of more than 6 months is enacted in the next year.
   
   
   
   





3. Apply formula:
   Pension = (Pensionable Salary × Pensionable Service) / 70





4. Check the deduction for quick pension:
   
   
   
   • When retiring between 50–57 years, there is a 4% cut per year.
   
   
   
   

Impact of service over 10 years

How to claim EPS pension?

Follow the following stages to claim your EPS pension:

1. Go to the EPFO ​​portal or UMANG app.





2. Login with your UAN and password.





3. Select the 'Pension' option in 'Online Services'.





4. Fill Form 10D and upload the required documents.





5. Submit the application and note the tracking ID.

Important point

• Pension is taxable. The interest earned on the EPF account is tax -free, but if the amount is more than ₹ 2.5 lakh per year, then tax will be levied as per the implemented rate.





• The EPS benefit is given to the employee and in his absence to the employee's family.





• The employee deposited by the employer every month is an employee's pension contribution in the EPS passbook, which is about ₹ 1,250 per month.

conclusion

EPFO's Employees Pension Scheme is an important social security measure for employees of organized sector. It not only provides financial security after retirement, but also helps the family in the event of employee's death or disability. With a minimum service period of 10 years, the scheme also benefits short -to -moderate employees.

However, it is important to note that the pension amount may vary depending on the years of service and contribution. Therefore, to make a better plan of your financial future, it would be wise to calculate your potential pension and consider additional savings or investment options.

Finally, the EPFO ​​Pension Scheme is a valuable profit, but it cannot meet all your retirement needs. Therefore, it is important to make a comprehensive retirement plan to suit your financial goals and lifestyle.

Disclaimer : This article is aimed at general information. EPFO rules and policies can change from time to time. Please contact the official EPFO ​​website or your employer for accurate and updated information. Always consult a qualified financial advisor before making a financial decision.