EPFO has been working for the betterment of the employees for years. Employees can make some investment under EPFO Pension Scheme to secure their lives after taking retirement. But there are some parameters to be eligible to get pension under the scheme. Who are eligible for receiving pension under EPFO Pension Scheme? Let’s find out.
Nowadays, every employee wants to maintain a stable income even after retirement. To this end, the government implemented the Employee Pension Scheme (EPS) in 1995. This scheme is administered by the Employees’ Provident Fund Organization (EPFO) and benefits millions of private employees.
What are the rules
If you have worked for at least 10 years, you are eligible to receive a monthly pension under the EPFO pension scheme. This scheme is specifically designed for employees whose monthly salary is ₹15,000 or less . Every month, your employer deposits 8.33% of your basic salary and dearness allowance into this pension account.
How much pension will you get
From this amount, after your retirement, a monthly pension is ensured as per a fixed rule, which is given for life. Under this scheme, you receive a pension when you have completed at least 10 years of service and are 58 years old. However, advance pension can be taken at a lower amount at age 50. Previously, the minimum pension under this scheme was ₹1,000, which has been increased to ₹7,500 per month in May 2025 to provide security to the elderly amid inflation and rising needs.
pensionable salary refers to the average salary of the last 60 months, up to a maximum of ₹15,000. Pensionable service is the total number of years of service in which contributions were made to EPS.
For example, if an employee’s average salary is ₹15,000 and he has served continuously for 10 years, the formula would be:
(₹15,000 × 10) / 70 = ₹2,143 per month.