Select Page

Employees’ Pension Scheme (EPS) of 1995 offers pension on retirement, disablement, pension to widow  and pension for nominees. This article explains how much EPS Pension will you get along with the Pension Calculator if you retire at age of 58 years.

Overview of EPS or Employee Pension Scheme

The EPF pension or EPS is a pension scheme for the employees of organized sector. This pension scheme gives a guaranteed monthly pension after the retirement. Employee provident fund organisation(EPFO) manages the pension account of all those who are contributing to EPF including private trust.  Our article Understanding Employee Pension Scheme or EPS explains EPS Pension in detail but an overview of the EPS Pension is given below.

  •  8.33% of employer’s monthly contribution from the EPF goes into EPS. Monthly contribution to EPS is restricted to 8.33% of 6500 or Rs 541 p.m and from Sep 2014 Rs 1250 (8.33% of 15,000). Government’s contribution is of 1.16% of the worker’s monthly wages if salary less than Rs 6,500.
  • Unlike the EPF contribution EPS part (8.33% out of 12% contribution from your employer or Rs 541 and after Oct 2014 Rs 1250 what ever is minimum) does NOT get any interest.
  • Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.
  • Pension is called Superannuation pension if one gets pension on retiring on attaining the age of 58 years
  • A employee can start receiving the pension under EPS only after rendering a minimum service of 10 years and attaining the age of 58/50 years.
  • One can apply for EPS Pension from a date immediately following the date of completion of 58 years of age notwithstanding that the person has retired or
    ceased to be in the employment before that date.
  • Maximum Pension one can get is Rs 7,500  per month.
  • Minimum Pension one can get is Rs 1,000 per month.
  • Maximum service for the calculation of service is 35 years.
  • The fraction of service for six months or more is treated as one year and the service less than six months shall be ignored. So 9 years and 6 months will be rounded up to 10 years.
  • If no wage is earned for a certain period, that period is to be deducted from the service, as there will be no contribution to Pension Fund.
  • If one resigns before completing 9 years and 6 months of service, you get the “withdrawal benefit” which depends on your monthly salary and the no. of years of service.
  • No pension is payable before the age of 50 years.
  • Early pension can be claimed after 50 years but before the age of 58 years. But it is subject to discounting factor @ 4% (w.e.f. 26.09.2008) for every year falling short of 58 years. In case of death / disablement, the above restrictions doesn’t apply.
  • No pensioner can receive more than one EPF Pension. So if you have worked in multiple organizations you meed to consolidate all your EPS and then apply for EPS Pension. If you have multiple Scheme Certificate you need to submit all of those.
  • EPS Pension is taxable and has to be considered under the head Income from Salaries.

Along with Employee Pension Scheme there is National Pension Scheme(NPS). Most of the new government employees are now the member of National Pension Scheme. However, most of the private employees are still with the EPF pension but can contribute to NPS.  Our article Understanding National Pension Scheme – NPS explains it in detail.

How to apply for the EPS pension?

One needs to fill the Form 10D and get attested by bank manager with photo and other required documents. Submit the form to EPFO. Once you complete the service of 10 years, then you get the scheme certificate. This scheme certificate can be used to claim your pension either from 58/50 Yrs. Our article Forms to avoid TDS,15G, 15H, and EPF Withdrawal Forms Form 19, Form 20,Form 10C,Form 10D,Form 51F explains it in detail.

How much EPS Pension will you get?

Pension depends on your contribution to Pension Fund and your number of years of service. Way to calculate pension changed on 15 Nov 1995. Hence there are two ways in which pension can be calculated. Two different ways of calculating pension is explained below along with the EPS Pension Calculator.

  • If you joined after 15/Nov/1995
  • And If you joined before 15/Nov/1995 but will retire after 15/Nov/1995.

The other changes  in EPS Pension Calculation are:

  • Increase in Pensionable Salary from Rs 15,000 per year(Rs 1250 per month) after 1 Sep 2014 and was Rs 6500 per year(rs 541 per month) before 1 Sep 2014.
  • No pension is payable before the age of 58 years. It was 55 years before 10 Feb 2016.

How much EPS Pension will you get if you joined after 15.11.1995

For those who joined after 15 Nov 1995 the formula for calculation of Pension is simple. the formula of calculation of pension is,

EPS Pension = Average Salary   X  Number of Years Service 
70

Number of Years of Service in calculating EPS Pension
  • You are eligible for pension after the 10 years of contributing to EPS. If your number of years are less than 10 you can withdraw your EPS amount.
  • Maximum service for the calculation of service is 35 years.
  • If you have completed more than 20 years in service then add two years bonus in above equation.
  • The fraction of service for six months or more is treated as one year and the service less than six months is ignored. So 9 years and 6 months will be rounded upto 10 years, 15 years 9 months will be rounded to 16 years but 15 years 3 months will be rounded to 15 years.
  • If you withdraw your EPS from earlier job,through Form 10C, then earlier years of service will not be counted. 
Salary in calculating EPS Pension
  • The Average Salary here means pensionable salary in the scheme.
  • Pensionable Salary here means amount you were contributing in EPS which is restricted to Rs 15,000 per year after 1 Sep 2014 and was Rs 6500 per year before 1 Sep 2014.
  • It is arrived by considering the average contributing salary preceding 60 months from the date of exit. (Earlier it was preceding 12 months)

Lets look at examples of EPS Pension Calculation.

Ex: How much pension will Rahul get if he works for 14 years from 1 Jun 2015

Rahul started his job on 1 Jun 2015. He works for 14 years. His average salary is 20,000 per month but for pension service maximum salary considered is Rs 15,000 or Rs 1250 per month. So Mr. Kapoor’s pension from 2 Jun 2030 will be Rs (15,000 X 14)/70 = Rs 3000 per month.

Ex: How much pension will Rajni get if she works for 10 years from 1 Sep 2007 and retires on 1 Sep 2017

As Rajni has contributed Rs 1250 per month from 1 Sep 2014, if she retires on 1 Sep 2017, her pensionable salary for last 60 months or 5 years will be Rs 11,600.

hence her pension would be (11600X 10/70)  = Rs 1657 per month

Ex: How much pension will Shivani get if she works for 20 years from 1 Sep 2010 and retires on 1 Sep 2030

As Shivani has contributed Rs 1250 per month from 1 Sep 2014, if she retires on 1 Sep 2016 her pensionable salary for last 60 months or 5 years was Rs 15000 So her pensionable salary will be considered as  (Rs. 15000*5 )/5= Rs 15000 per year. But as she has worked for 20 years she would get 2 years of bonus, 

hence her pension would be (15,000 X 22/70)  = Rs 4714 per month.

What is the maximum amount of Pension available under EPS?

Based on a maximum employment period of 35 years, and maximum contribution of Rs 15000, the maximum amount of pension as per the Pension formula would be = 15000 * 35/70 = Rs 7,500 per month or  Rs. 90,000(7500 * 12) per year.

EPS Pension Calculator if you joined after 15.11.1995

The EPS Pension Calculator calculates EPS Pension for those who joined after 15 Nov 1995.

EPF Joining Date (dd/mm/yyyy):
Retirement Date (dd/mm/yyyy):

Average Pensionable Salary :

Number of Years of Service :

Your Pension per month:

How much EPS Pension will you get if you joined before 15.11.1995

For a person who started earning and joined EPF before 15.11.1995,  Pension calculation has 3 components:

(a)Past Service Benefit (b)Pensionable Service Benefit (c)Proportionate Reduction

  • Past Service : means the period of service rendered by an existing member from the date of joining Employees’ Family Pension of 1971 till the 15th November, 1995.
  • Pensionable service means period of service rendered from 16 Nov 1995.Same as the calculation of pension who joined after 15.11.1995
  • Proportionate reduction: if the past service is less than 24 years and past service benefit + Pensionable service pension is less than Rs. 500.

Here, the formula of calculation of pension for those who joined before 15/Nov/1995  is:

Past Service benefit + Pensionable service benefit   –   Proportionate reduction subject to minimum pension specified for each group.

For those who joined after 15.11.1995 only Pensionable Service Benefit is applicable

The pension for someone who joined before 15/Nov/1995 is calculated in two parts.

  • (a) Calculate the pension for the period after 16/11/1995,Pensionable service, which is explained earlier.
  • (b) Calculate pension amount for the period before the 16/11/1995, Past Service Pension,
  • Check the proportionate reduction subject to minimum period depending on when the pension started or date of commencement of pension.

If date of commencement of pension is after 16th November, 2005

  •  (a) The period of Pensionable service rendered from the 16th November, 1995 or Rs 635 per month whichever is more.
  • (b) Past service pension for pension till 15th November, 1995
  • The sum of (a) and (b) calculated will be subject to a minimum of Rs. 800 per month provided the eligible service is 24 years. If it is less than 24 years, the pension as computed above shall be reduced proportionately subject to a minimum of Rs. 450 per month

If date of commencement of pension is between 16th November, 2000 and 16th November, 2005

  • The period of Pensionable service rendered from the 16th November, 1995 or Rs 438  per month whichever is more.
  • Past service pension for pension till 15th November, 1995
  • The sum of (a) and (b) calculated will be subject to a minimum of Rs. 600 per month provided the eligible service is 24 years. If it is less than 24 years, the pension as computed above shall be reduced proportionately subject to a minimum of Rs. 325 per month.

The date of commencement of pension is before 16th November 2000 

  • The period of Pensionable service rendered from the 16th November, 1995 or Rs 335 per month whichever is more.
  • Past service pension for pension till 15th November, 1995
  • The sum of (a) and (b) calculated will be subject to a minimum of Rs. 500 per month provided the eligible service is 24 years. If it is less than 24 years, the pension as computed above shall be reduced proportionately subject to a minimum of Rs. 265 per month.

EPS Pension: Past Service Computation

To calculate EPS pension amount before 15/Nov/1995, Table A is used which shows Pension amount based on Basic Salary and number of years of service till 15/Nov/1995. The pension is fixed according to the pay band and service period till 15/Nov/1995. If a person had basic salary of Rs 3000 on 15/Nov/1995, and he had worked for 16  years till 16/Nov/1995, then using the table A, he would get 130 pension per month for service before 16/11/1995.

Years of Past Service Salary Upto ₹ 2500 Salary above 2500
Up to 11 years 80 85
11-15 years 95 105
15-20 years 120 135
Above 20 years 150 170

Table B: Enhanced Pension for retirement Years after 15/Nov/1995

The employee, who retires after 15/Nov/1995 gets enhanced pension of the past period. If any employees attains his 58 years after 16.11.1995, his pension amount will be multiplied by a factor stipulated in table D according to the difference between 16.11.1995 and the retirement i.e date of completion of 58 years.  For example, If the above person, who worked for 16 years before 15/Nov/1995 retires on 20/11/1996, he would get the pension of Rs 183.6 (135 x 1.122).

TABLE B:FACTOR FOR COMPUTATION OF PAST SERVICE BENEFIT 

less than 1 year 1.039
less than 2 year 1.122
less than 3 year 1.212
less than 4 year 1.309
less than 5 year 1.413
less than 6 year 1.526
less than 7 year 1.649
less than 8 year 1.781
less than 9 year 1.923
less than 10 year 2.077
less than 11 year 2.243
less than 12 year  2.423
less than 13 year 2.616
less than 14 year 2.826
less than 15 year 3.052
less than 16 year 3.052
less than 17 year 3.560
less than 18 year 3.845
less than 19 year 4.152
less than 20 year 4.485
less than 21 year 4.843
less than 22 year 5.231
less than 23 year 5.649
less than 24 year 6.101
less than 25 year  6.589
less than 26 year  7.686
less than 27 year 7.686
less than 28 year  8.301
less than 29 year  8.965
less than 30 year  9.682
less than 31 year  10.457
less than 32 year  11.294
less than 33 year  12.197
less than 34 year 13.173

Example of EPS Pension Calculation for those who joined before 15.11.1995

  • Date of Joining: 01/06/1985
  • Salary as on 15/11/1995: Above Rs 2500 per month.
  • Salary on Completion of 58 years as on 01/01/2018: Rs 15,000
  • Past Service : 01/06/1985 to 15/11/1995 or 10 years
  • Compensation, For Past Service as per Table A, is Rs 85
  • But Retirement at age of 58 is on 01/06/2018,difference between 01/06/2017 and 15/11/1995 is 22 years,  So its 5.649 as per Table B.
  • Past Service Benefit (Table A x B): Rs 85 x 5.649= Rs 480.165
  • Pensionable Service from 15/11/1995): 22 years
  • Additional Weight age: 2 years
  • Pensionable Salary(last 5 years): Rs 11,600.
  • Pension Admissible: 11,600.x 24/70 = Rs 3977
  • Total Pension: Rs 5142+Rs 515 = Rs 4457

EPF Pension Calculator if you joined before 15.11.1995

The EPS Pension Calculator calculates EPS Pension for those who joined before 15 Nov 1995. It is still in development stage as we have to include proportionate reduction.

EPF Joining Date (dd/mm/yyyy):
Retirement Date (dd/mm/yyyy) :

Years till 1995:

Base Salary till 1995:

Years after 1995:

Multiplication Factor:

Your Pension per month:

Average salary post 1995:

Your Pension after Nov 1995 per month:

Your Total Pension per month:

Related Articles:

Hope this helped in understanding how much EPF Pension will one get. Yes EPS Pension is not much but every rupee counts. You do need to make other investment plans to have a great retirement.

If you love watching movies online for free, moviebox pro apk is one of the best in the market.

123 free movies