EPFO Pension: The Employees’ Pension Scheme (EPS) administered by the Employees’ Provident Fund Organization (EPFO) provides meaningful financial security for your retirement years. Recently, the salary threshold for EPF participation has been increased from Rs 15,000 to Rs 25,000. For example, if you’ve worked for 20 years with a salary of Rs 22,000, you can calculate your expected pension amount.

To receive a steady monthly pension through the Employees Provident Fund (EPF), employees must have completed a minimum of 10 years of eligible service.

Understanding the calculation
The EPFO uses this formula to determine your EPS pension:

Monthly pension = (Pensionable salary × Pensionable service) ÷ 70

* Pensionable Salary: Calculated from your average earnings over the preceding 60 months.
* Pensionable Service: The total years you’ve contributed to the EPS program.

What’s your pension after 20 years?

Let’s walk through an example: if your pensionable salary is Rs 22,000 and contributions are based on your actual salary within the ceiling, here’s how it breaks down:

After 20 years of service: (22,000 × 22) / 70 = Rs 6,915

Following 20 years of service, you’ll receive a fixed monthly pension of approximately Rs 6,915. Keep in mind that if your service extends beyond 20 years, you may receive bonus service credits that enhance your pension calculation.

Your employer’s contribution

Your employer contributes 12% of your basic salary to PF, matching your own 12% contribution. The employer’s 12% allocation breaks down as:

“>October 5, 2026


1. 8.33% funds the EPS account: Previously, employers deposited a maximum of Rs 1,250 monthly into your pension fund under the Rs 15,000 salary cap. With the new Rs 25,000 cap in place, employers now deposit Rs 2,088 into your pension fund.
2. 3.67% goes into your EPF account.