EPS Pension Calculation: Rs 84,000, basic salary, 16, 26, and 32 years of service, find out your monthly pension
Those who have attained the age of 50 years are eligible for early pension, and those with 58 years are eligible for regular pension. To calculate the monthly pension under the Employees' Pension Scheme (EPS), you need to have completed at least 10 years of service. Let's determine the monthly pension for someone with a basic salary of Rs 84,000 and 16, 26, or 32 years of service.
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The Employee Pension Scheme (EPS) is a retirement plan that provides a monthly pension to employees after age 58. You can also opt for an early pension at 50. Both employees and employers contribute to the pension fund. Let's calculate the monthly pension for someone with a salary of Rs 84,000 and different years of service (16, 26, and 32 years) to see how much they can expect to receive each month.
How do EPS contributions work?
When it comes to saving for retirement, both you and your employer contribute to it. Here's how it works: You and your employer each put 12 per cent of your basic salary into a fund.
Your employer's 12 per cent is split into two parts: 8.33 per cent goes into the Employee Pension Scheme (EPS) and 3.67 per cent goes into the Employees' Provident Fund (EPF).
Who is Eligible for Employee Pension Scheme (EPS)?
Those who have attained the age of 50 years for early pension and 58 years for regular pension.
You must be a member of the EPFO.
You must have completed 10 years of service.
What are minimum and maximum EPS amounts?
The minimum monthly pension that you will receive is Rs 1,000, and the maximum is Rs 7,500.
EPS calculation conditions
The formula for calculating the EPS pension is:
Monthly pension amount = (Pensionable Salary x Pensionable Service) / 70.
Monthly Pension Calculation: Pensionable service, 16, 26, & 32 years
The monthly pension amount you will receive will depend on your pensionable salary and service. The average salary used in the formula is the average of your basic salary plus your DA for the last 12 months.
Pension Calculation
Contributing to the (present) wage ceiling of Rs 15,000. Even if someone's basic salary and dearness allowance is Rs 84,000, their EPS pension will be calculated at Rs 15,000 salary.
What will be your monthly pension with 16 years of service?
(Pensionable Salary X Pensionable Service)/70 = (15,000x16)/70 = Rs 3,429.
Individuals may get around Rs 3,429 as a pension for their service period of 16 years.
What will be your monthly pension with 26 years of service?
(Pensionable Salary X Pensionable Service)/70 = (15,000x26)/70 = Rs 5,571.
Individuals may get Rs 4,714 as a pension if the service is 26 years.
What will be your monthly pension with 32 years of service?
(Pensionable Salary X Pensionable Service)/70 = (15,000x32)/70 = Rs 6,857.
Individuals may get around Rs 6,429 as a pension for their service of 32 years.
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