EPS Pension Calculation: Rs 59,000, basic salary, 20, 25, and 33 years of service, find out your monthly pension
The benefit of the EPS is paid to the employee and, in his or her absence, to the family of the employee. In case the employee has no family, they can nominate anyone according to their wish. Please note that an employee is entitled to receive a pension only after completion of a minimum of 10 years of eligible service. Let’s go through the article to see what your monthly pension will be with Rs 59,000, basic salary, 20, 25, and 33 years of service.
Here, EPS stands for Employee Pension Scheme, which is managed by the Employees' Provident Fund Organisation (EPFO). The EPFO is a statutory body under the Ministry of Labour and Employment, Government of India, and is responsible for managing the EPS. The EPS provides a monthly pension to eligible employees after they reach the age of 58.
Both employers and employees contribute to the EPF, with a portion of the employer's contribution allocated to the EPS. On that note, let’s find out your monthly pension with Rs 59,000 as basic salary and 18, 25, & 33 years of service. We will also walk you through the calculations and formulas required to calculate the EPS pension amount. You can also consider it to find a monthly pension for your friends or family.
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Who is eligible for EPS benefits?
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.
How much is minimum pension under EPS?
The minimum monthly pension that you will receive from EPS is Rs 1,000.
How many years of service are needed for EPS pension?
An employee is entitled to receive an EPS pension only after completion of a minimum of 10 years of eligible service.
What are rules for EPS contributions?
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 covered under Employee Pension Scheme (EPS)?
The benefit of the EPS is paid to the employee and, in his or her absence, to the family of the employee.
Is it possible to update EPS nominee details?
Yes, a member of the EPS can change his or her nomination according to the rules for such nomination. It simply means that the nominee should be a family member of the employee. Only if the employee has no family, they can nominate anyone else according to their wish.
What happens to EPS when you switch jobs?
When you change jobs, your EPF (Employee Provident Fund) amount can be transferred to your new account. However, your EPS (Employee Pension Scheme) amount stays in the old account and can't be transferred. Your service details are linked, so your total work years can be tracked. This means your EPF accounts can be combined, but your EPS amounts will remain separate in different passbooks.
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, 20, 25, & 33 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. According to the rule, even if someone's basic salary and dearness allowance is Rs 59,000, their EPS pension will be calculated at Rs 15,000 salary.
What will be your monthly pension with 20 years of service?
(Pensionable Salary X Pensionable Service)/70 = (15,000x20)/70 = Rs 4,285.
Individuals may get around Rs 4,285 as a pension for their service period of 20 years.
What will be your monthly pension with 25 years of service?
(Pensionable Salary X Pensionable Service)/70 = (15,000x25)/70 = Rs 5,357.
Individuals may get Rs 5,357 as a pension if the service is 25 years.
What will be your monthly pension with 33 years of service?
(Pensionable Salary X Pensionable Service)/70 = (15,000x33)/70 = Rs 7,071.
Individuals may get around Rs 7,071 as a pension for their service of 33 years