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New Delhi. Private job holders get the facility of EPFO to avail pension after retirement. Employee Pension Scheme ( EPS ) is a type of retirement scheme. In this, the user has to deposit a fixed amount every month, on which interest is given by the government and in this way a large fund is collected with the user till retirement.
In EPFO, the employee has to deposit 12 percent of his dearness allowance along with his basic salary. The amount deposited by the employee is deposited by the company as much. Let us tell you that the contribution amount by the company is divided into two parts. 8.33 percent of the contribution amount goes to the Employee Pension Scheme (EPS) and 3.67 percent goes to EPF.
There is always a question in the mind of EPFO users that how much pension will they get under the EPS scheme after retirement? Today we will tell you about a formula with the help of which you can easily calculate pension.
Before knowing the formula, let us tell you that to get the benefit of pension, the employee has to contribute to EPS for at least 10 years. This means that it is necessary to work for 10 years. The maximum pensionable service is 35 years.
How to calculate pension
EPS= Average Salary x Pensionable Service/ 70
Average salary = basic salary and dearness allowance.
Pensionable Service = How many years you have been working.
Understand it like this, if your average salary is Rs 15,000 and you have worked for 35 years, then with the help of a formula you can easily find out how much pension you will get.
According to the formula, average salary x pensionable service / 70 i.e. 15000 x35 / 70 = Rs 7,500 pension per month.
Keep one thing in mind that this formula is for employees working in the organized sector after 15 November 1995. The rules are different for employees before this.
Keep these rules in mind
Only employees up to 58 years of age get the benefit of pension. But by selecting the option of Early Pension, they can get the benefit of pension even earlier. In Early Pension, one gets the benefit of pension at the age of 50 years. However, in Early Pension, pension is available with a deduction of 4 percent.
Understand it this way that if you select the option of Early Pension at the age of 56, then you will get only 92 percent of the basic amount as pension. Whereas, after 58 years you will get the normal pension amount.
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