EPS Pension- If you are a pensioner, then this article is for you. Be it public sector or private sector, another thing that worries every employed person along with salary is pension after retirement. Everyone has the same question in their mind that how much pension will be received every month after retirement? Today we will tell you that if your basic salary is Rs 50,000 monthly, then how much pension can you get after 20, 25 and 30 years of service under EPS.

Understand the EPS

EPS i.e. Employee Pension Scheme is a government scheme, which has been created to provide regular income to the employees of the organized sector after retirement. For this, it is necessary to have an EPFO ​​account. In this account, you and your company deposit 12% of your basic salary. Some of this money goes to your EPS account. Pension is given after retirement from this fund.

After completing 10 years of service, any employee becomes eligible for pension under EPS. Apart from this, pension can also be taken by taking early retirement at the age of 50, but with a lower amount. At the same time, 58 years of age is required for regular pension.

When both you and your employer contribute 12% each to the EPFO ​​fund, the 12% contributed by the employer is divided into two parts. 8.33% goes to the Employee Pension Scheme (EPS) while 3.67% goes to the Employee Provident Fund (EPF). Pension is paid after retirement from this EPS fund.

However, the pension calculation in EPS is done by a special formula and there is a limit in it. Under this, even if your basic salary is Rs 50,000, the calculation in EPS is done on a maximum salary of Rs 15,000. That is, even if your basic salary is Rs 60,000, the pension calculation will still be done on Rs 15,000.

EPS pension calculated?

EPS pension is calculated using the formula (pensionable salary × service period) ÷ 70. Here pensionable salary means the average basic salary of the last 12 months + DA (maximum ₹ 15,000 is considered) and service period means the number of years you have worked.

How much EPS pension will be received after working for 20, 25 and 30 years on a basic salary of Rs 50,000?

– Even though your basic salary is Rs 50,000, but due to the limit, your pension calculation will be at Rs 15,000. Therefore

Pension on 20 years of service:(15,000 x 20)/70 = Rs 4,285 per month

Pension on 25 years of service:(15,000 x 25)/70 = Rs 5,357 per month

Pension on 30 years of service:(15,000 x 30)/70 = Rs 6,428 per month

Apart from this, the maximum pension under EPS is Rs 7,500 and the minimum is Rs 1,000 per month. However, if the employee dies, the EPS nominee gets the pension. Employees can make their wife, children or parents as nominees. If there is no family, any trusted person can also be made a nominee.