PF Pension Calculator: There is good news for pensioners. Every employee plans in advance to ensure that their life goes smoothly without any financial difficulties after retirement. Employees working in the private sector receive pension from EPS.

Every month, a certain amount is deposited from the employees’ accounts and the same amount from the company is deposited in the EPF account. Let’s see through an example how much pension EPF members receive after retirement. If you are 25 years old and your basic salary is Rs. 20 thousand.. 20,000×12% = Rs. 2,400 will be deposited in the EPF account every month. The company’s contribution to this is: Rs. 20,000×12% = Rs. 2,400. Of this, EPS is: 15,000 × 8.33% = Rs. 1,250, (EPS is calculated on the maximum salary of Rs. 15 thousand). 2,400–1,250 = Rs. 1,150 will be deposited in the EPF.

Total in EPF: Rs.2,400 (employee) + Rs.1,150 (company) = Rs.3,550 is deposited per month. In EPS, Rs. 1,250 is deposited per month. After 35 years, i.e. after the employee’s retirement, if Rs.3,550 is calculated every month, it will be Rs.42,600 per year.

If you calculate Rs 42,600 at 8.25 percent interest every year for 35 years, it will be Rs 68.9 lakhs. Your money will grow every year. In the first year, you will get 8.25% interest on Rs 42,600, and next year you will get the previous money along with the interest. If you calculate like this, in 35 years of service, that amount will reach Rs 68.9 lakhs. Rs.1,250 is deposited in EPS every month. After retirement, it becomes pension. Pension = (years of service × average salary) ÷ 70. If calculated at Rs.15 thousand.. Pension = (35×15,000) ÷ 70 = 5,25,000 ÷ 70 i.e. Rs.7,500 per month.

Rs.68.9 lakhs from EPF and Rs.7,500 per month from EPS. The entire pension cannot be taken at once. If you live for 20 years (between 60 and 80 years) after retirement.. 7,500×12×20=Rs.18 lakhs will be received as pension. Then the total benefit will be: Rs.68.9 lakhs + Rs.18 lakhs = Rs.86.9 lakhs. But this is just an estimate. If you live longer.. you will receive more pension.

With the increase in salary, the amount deposited in the EPF and EPS account also increases. Then, the amount the employee receives after retirement will also increase.