EPFO Pension: How to get a pension of Rs 7,200 every month after retirement, calculate like this

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By using EPF calculator, salaried employees can calculate their savings with accuracy and know how much pension they will get after retirement. If you are a salaried employee and are about to retire, you can get Rs 7,200 as pension every month after retirement. Now you must be thinking that after retirement, how will you get a pension of Rs 7,200 every month and how to calculate it, then let us tell you that both public and private sector employees are considered eligible for post-retirement pension. That’s why employees get pension after retirement .
Employees’ Provident Fund (EPF) was created……(read more)

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EPFO Pension: How to get a pension of Rs 7,200 every month after retirement, calculate like this…

Retirement is a crucial phase in everyone’s life, and having a pension plan in place is essential. The Employees’ Provident Fund Organization (EPFO) is a government organization that provides pension benefits to employees who have contributed regularly during their work-life. The EPFO pension is one of the most reliable and long-term pension schemes in India.

To calculate the monthly pension benefits under the EPFO scheme, the following factors need to be considered:

1. Basic salary: The last basic salary you received before retirement determines your pension benefits. The higher the basic salary, the higher the pension benefits.

2. Pensionable service: The number of years worked in a job prior to retirement is called pensionable service. The longer the pensionable service, the higher the pension benefits.

3. Pensionable salary: The average of the last 60 months of salary is defined as the pensionable salary. This is also a crucial factor in determining your pension benefits.

The formula for calculating the monthly pension under the EPFO scheme is as follows:

Pension = (Pensionable salary x Pensionable service) / 70

For example, if your pensionable salary is Rs 30,000 and pensionable service is 30 years, your monthly pension will be:

Pension = (30,000 x 30) / 70 = Rs 12,857

However, the maximum pension that can be received under the EPFO scheme is Rs 7,200 per month, which means even if the calculated amount is higher, the maximum pension that will be received is Rs 7,200 per month.

Hence, if your pensionable salary is more than Rs 15,000, you can contribute voluntarily to the Employees’ Pension Scheme (EPS) and receive a higher pension benefit. The calculation formula for the EPS is slightly different, and it also depends on the contribution made to the EPS account.

In conclusion, the EPFO pension is a reliable and trustworthy pension scheme for employees, and understanding how it is calculated can help individuals plan better for their retirement. By contributing regularly and making smart contributions to the EPS account, one can ensure a comfortable life post-retirement.