EPS Pension | Maximum | Minimum | Rules | Forms | Calculation | August 2018 – If you wonder how much pension you will get under EPS, Read our brief article on all of your queries related to the EPS Pension like : EPS pension calculator, EPF pension rules, EPF pension calculator excel, Formula to calculate pension, How to calculate pension amount, PF pension calculation formula and many more here @EPFOSCHEME.IN
Updated – August 2018
What EPS (Employees Pension Scheme) does is that it offers a guaranteed monthly pension after the retirement of the members/subscribers on Disablement, Retirement, Pension for nominees as well as Widow Pensions.
▶ Under the EPF (Employee Provident Fund), 8.33% of the contribution transferred into the EPS (Employees Pension Scheme)
▶ The pension will not be started before the age of 50 years.
▶ Pensions after 50 years can be claimed but before the age of 58 years & it will be subject to a discount factor of 4% for every single year falling short of 58 years.
▶ The maximum contribution that an employee can make is limited to 8.33% INR 541 /month & from 2014 September INR 1250 /month.
▶ If the salary of an employee is not enough or less than INR 6,500 /month, The govt. contributes to his/her savings with 1.16% of monthly wages.
▶ 9 years and 6 months will be marked as a working 10 years because under EPS the service for 6 months is counted as one complete year but the service which is less than 6 months will not be counted.
▶ The members can able to apply for the Pensions right after the date of completion of age 58 years.
▶ Under EPS the maximum pension that the member can get is limited to INR 7,500 /month.
▶ Under EPS the minimum pension that the member can get is limited to INR 1,000 /month.
▶ 35 Years is the maximum service for the service calculation.
▶ Under the EPS the biggest factor is that the pension is available to the subscriber/member till his/her death. After, the family are entitled to the monthly pensions.
▶ If the members start getting a pension after retiring at the age of 58 years, The Pensions is called Superannuation Pension.
▶ The eligibility of receiving the pensions under Employee Pension Scheme is that the member should have done the service of minimum 10 working years at the attaining age of 50/58 years.
▶ For the certain time or period, if the wage is not earned. That period will be removed from the service because of the non-contribution to Pension Fund.
▶ In some cases, the member resigns before completing his/her service of at least 9 years & 6 months. So, in that case, the member will get the other benefit such like ” withdrawal benefit”
HOW TO CALCULATE EPS PENSION – How Much You Will Get?
The EPS (Employees Pension Scheme) build upon the contribution that the member has done in Pension Fund and the other is the number of years of services.
In past years the method to calculate the pension was different but then it was changed on 15 November 1995. The two ways from which the pension will be calculated is :
- Joining after 14-November-1995
- Joining before 14-November-1995
EPS Pension Who Joined After 15-11-1995
The Members or contributors who want to calculate the pension and they joined after 15-11-1995, The formula of calculation is :
Role of “Service Years” in EPS Pension
▶ All the members or subscribers will be able to get their pensions after completing 10 years of contributing to EPS & when they attaining the age of 50/58 years.
▶ One can withdraw his/her EPF amount if the number of years is less than 10 years.
▶ The maximum service to calculate the service is 35 years.
▶ If the employee has completed his/her service years of 20 years then they can add 2 additional years bonus in above equation.
▶ As we mentioned above that the 6 months is marked as a 1 full year of service and the service less than 6 months will be nothing under EPS. So, the 9 years & 6 months will be marked as 10 full years of service and 15 years & 9 months will be marked as 16 full years of service. But 15 years & 3 months will be count as a complete 15 years of service.
Note : IF THE MEMBER WITHDRAW HIS/HER EPS FROM THEIR EARLIER JOB BY USING THE FORM 10C, THEN THE EARLIER YEARS OF SERVICE WILL NOT BE COUNTED.
Role of “Salary” in EPS Pension
- Under the EPS the salary means how much your pensionable salary is there in the scheme.
What is pensionable salary?
The pensionable salary stands for the amount that the member was contributed to the EPS which has the limit of INR 15,000 per annum.
BASIC PENSION CALCULATION (Members Before 15-November-1995)
The members who joined after the given date has a different method but the members who joined before given date has 3 different components, Such as:
- Proportionate Reduction
- Pensionable Service Benefit
- Past Service Benefit
What are these 3 components stands for?
The Proportionate Reduction stands for the issue as If the past service is less than 24 years and on the other side the pensionable service pension plus(+) past service benefits is less the ₹ 500
The Proportionate Reduction stands for the service period which is rendered from 16-11-1995. This section is as same as the calculation of pension who has joined after the date 15-Nov-1995.
The past service stands for the service period which is rendered by the existing member from the date when he/she joining Employees Family Pension of 1971 till the 15-11-1995.
BASIC PENSION CALCULATION (Members After 15-November-1995)
In the calculation down below we covered different sections so you can be clear about your pensions amount and other things. We covered Year of Retirement, Pensionable Salary, Service Years, Pension per month.
Note: All the calculations provided are based on the highest contribution under EPS of ₹ 15000 & the year started from 2010-2020 TO 2044.
Year of Retirement
Pension per month
|2020||₹ 15000||10||₹ 2143|
|2021||₹ 15000||11||₹ 2357|
|2022||₹ 15000||12||₹ 2571|
|2023||₹ 15000||13||₹ 2786|
|2024||₹ 15000||14||₹ 3000|
|2025||₹ 15000||15||₹ 3214|
|2026||₹ 15000||16||₹ 3429|
|2027||₹ 15000||17||₹ 3643|
|2028||₹ 15000||18||₹ 3857|
|2029||₹ 15000||19||₹ 4071|
|2030||₹ 15000||22 (20 + 2 Bonus Years)||₹ 4714|
|2031||₹ 15000||23 (21 + 2 Bonus Years)||₹ 4929|
|2032||₹ 15000||24 (22 + 2 Bonus Years)||₹ 5143|
|2033||₹ 15000||25 (23 + 2 Bonus Years)||₹ 5357|
|2034||₹ 15000||26 (24 + 2 Bonus Years)||₹ 5571|
|2035||₹ 15000||27 (25 + 2 Bonus Years)||₹ 5786|
|2036||₹ 15000||28 (26 + 2 Bonus Years)||₹ 6000|
|2037||₹ 15000||29 (27 + 2 Bonus Years)||₹ 6214|
|2038||₹ 15000||30 (28 + 2 Bonus Years)||₹ 6429|
|2039||₹ 15000||31 (29 + 2 Bonus Years)||₹ 6643|
|2040||₹ 15000||32 (30 + 2 Bonus Years)||₹ 6857|
|2041||₹ 15000||33 (31 + 2 Bonus Years)||₹ 7071|
|2042||₹ 15000||34 (32 + 2 Bonus Years)||₹ 7286|
|2043||₹ 15000||36 (34 + 2 Bonus Years)||₹ 7714|
|2044||₹ 15000||35 (Maximum)||₹ 7500|
Forms Under Employees Pension Scheme (EPS)
|EPF Form 10D||
||For Nominee / widow / Children|
|EPF Form 10D||
|EPF Form 10C||
||For Member’s / Beneficiary’s|
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