EPS Pension Calculation: Estimate your monthly pension with Rs 35,000 salary, 25 years of service & age 33
Calculate your EPS pension with a basic pay of Rs 35,000 and 25 years of service. Understand eligibility, contributions, benefits and the pension formula to estimate your monthly pension under EPS.
The Employees’ Pension Scheme (EPS) provides a secure retirement income for organised sector employees. If your basic pay is Rs 35,000 and you have 25 years of pensionable service, you might wonder how much pension you’ll receive. EPS follows a fixed formula for calculations, considering a wage ceiling of Rs 15,000. This article explains EPS eligibility, contributions, benefits and the pension formula to help you estimate your monthly pension. Know what will be your monthly pension with basic pay of Rs 35,000, 25 years of pensionable service & current age of 33?
What is the Employees’ Pension Scheme (EPS)?
- EPS is a government-backed retirement plan for employees in the organised sector.
- All EPF members are automatically enrolled.
- Returns are guaranteed with no investment risk.
EPS eligibility criteria
- Minimum 10 years of service required.
- Early pension at 50 years; full pension at 58 years.
- Must be an EPFO member.
EPS Contributions: How much is deducted?
- Employee & employer contribute 12% each to EPF.
- Employer’s 8.33% share (of basic + DA) goes to EPS.
- Employer contributes 3.67% to EPF.
Benefits of EPS
- Provides a fixed income after retirement.
- Full pension withdrawal possible after 58 years if service ended 10 years before.
EPS Nomination: Who can receive the pension?
- Account holder nominates family (spouse, children, parents).
- If no family, any nominee can be chosen.
Who benefits from EPS?
- Pension is for the employee.
- If the employee passes away, the family receives benefits.
Minimum and maximum pension under EPS
- Minimum monthly pension: Rs 1,000
- Maximum monthly pension: Rs 7,500
EPS pension calculation formula
- Formula: (Pensionable Salary × Pensionable Service) ÷ 70
- Average of the last 12 months’ basic pay + DA is considered.
What will be your monthly pension with basic pay of Rs 35,000, 25 years of pensionable service & current age of 33?
- Basic Pay: Rs 35,000
- Pensionable Salary (Wage Ceiling): Rs 15,000
- Pensionable Service: 25 years
- Calculation: (15,000 × 25) ÷ 70 = Rs 5,357 per month
So, the estimated monthly pension would be Rs 5,357.
Understanding the Concept: How is your EPS pension decided?
- The government sets a wage ceiling for EPS, currently Rs 15,000.
- Your pension is calculated based on this ceiling, not your actual basic pay.
- The longer your service period, the higher your pension amount.