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EPFO Employee Pension Scheme: EPS 1995 Benefits, Payout Formula Explained

EPFO Employee Pension Scheme: EPS 1995 Benefits, Payout Formula Explained
EPFO: Employee Pension Scheme benefits, EPS payout calculation, rules, features and key FAQs, explained · livemint.com

A pension is money you get every month after you stop working.

In India, a government agency called the EPFO runs a pension plan called EPS 1995 for workers.

A worker usually needs to be part of the plan for about 10 years to get a pension.

While you work, your employer puts some money into the pension fund, and the government adds a little too.

When you turn 58, you can start receiving your monthly pension.

How much you get depends on your salary and how many years you worked.

For example, someone who worked 35 years could get around ₹7,500 every month.

You can also start getting a smaller pension as early as age 50.

Each year you must show you are still alive, which you can now do digitally with your Aadhaar card.

Key facts

Scheme
Employees' Pension Scheme 1995 (EPS 1995)
Administering body
Employees' Provident Fund Organisation (EPFO)
Employer contribution
8.33% of wages
Centre contribution
1.16% of wages
Pension formula
(Pensionable Salary x Pensionable Service) / 70
Wage ceiling
₹15,000 per month
Pension age
58 years; reduced pension from age 50
Minimum service
10 years (disability pension exempt)

Sources

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