EPF Pension- How Much Pension Will You Get After 12 and 20 Years of Service? Know Here

EPF Pension: There is a big update for EPF pensioners. The EPFO frequently implements various changes to enhance employee convenience. Recently, the EPFO has introduced several modifications that have made PF withdrawals easier for employees. At the same time, the government is contemplating raising the minimum pension under EPS-95 from Rs. 1,000 to Rs. 7,500.

EPF members contribute 12% of their basic salary to the provident fund, with employers matching this contribution. From the employer’s share, 8.33% is allocated to the Employees’ Pension Scheme (EPS), while 3.67% is directed to the EPF scheme.

In anticipation of Budget 2025, a group of retired EPS-95 employees met with Finance Minister Nirmala Sitharaman to advocate for their long-standing request: a minimum pension of Rs 7,500 per month, along with a dearness allowance (DA).

The EPS-95 National Movement Committee reported that the Finance Minister assured them that their request would be taken into consideration. Now, let’s determine how much salary you will receive according to the current EPFO formula. The monthly pension amount you receive is based on your pensionable salary and the duration of your service. This calculation uses the average basic salary and 12 months’ dearness allowance.
However, there is an important rule to keep in mind: If your contribution falls within the current salary cap of Rs 15,000, then even if an employee’s basic pay and dearness allowance exceed this amount, the pension will be calculated based on Rs 15,000 only.

What will your monthly pension amount be?

Pensionable salary x pensionable service/70 = (15,000 x 12)/70 = approximately ₹2571.42. Likewise, the pension for 20 years of service would amount to ₹4285. Using this information, you can estimate your remaining pension.

Meanwhile You will be able to withdraw your Provident Fund (PF) money through ATM and UPI. This facility is expected to go live by the end of May, which will make access to PF money easier and faster. This information has been given by sources to ET Now. According to the EPFO ​​dashboard, there are around 7,98,24,491 members in EPFO. Out of these, Aadhaar verified KYC of more than 7.74 crore members has been done. Out of these, 82,11,182 are pensioners.

What will be the benefit?

This new system will provide EPFO ​​members with easier access to their PF balances, enabling auto-claim settlement and fund transfer to their preferred bank account. The most significant upgrade will be the availability of PF withdrawals through ATMs and UPI. How much can you withdraw? The EPFO ​​will set a maximum withdrawal limit. Accordingly, only up to 50% of the total PF balance can be withdrawn through UPI or ATM.