EPS Pension Scheme: Do you do a government job and want to be financially secure after retirement, Then the Employee Pension Scheme (EPS) can be a great option for you.
It is a government social security scheme that gives you financial help after retirement. In this article, we will discuss the EPS Pension Scheme in detail.
What is the EPS Pension Scheme
Employee Pension Scheme (EPS) is a future security scheme introduced by the Government of India. Under this scheme, both government employees and their employers together contribute to the pension fund. After retirement, the employee gets a monthly pension from this fund.
Who is eligible for the EPS Pension Scheme
There are some conditions to avail of the EPS Pension Scheme:
Being an EPFO member: You must work for an organization that is part of the Employees’ Provident Fund Organization (EPFO).
Minimum 10 years of contribution: You must have contributed to EPF for at least 10 years.
Age limit: You must be above 58 years of age. (Under certain circumstances, employees above the age of 50 may also be eligible.)
How is the EPS pension calculated
The amount of EPS pension depends on two main factors:
Period of contribution: How many years you have contributed to EPS?
Average salary of last 5 years: Your average monthly income for the 60 months before retirement.
EPS Pension Calculator
You can use the online EPS pension calculator by visiting the official website of EPFO (epfindia.gov.in). This calculator will help you estimate your potential pension amount.
Benefits of EPS Pension
Financial security: EPS pension helps you stay financially secure after retirement.
Family support: Your family continues to get financial support from the EPS pension even in your absence.
Less investment, more benefit: The contribution made by you and your employer is relatively less, but the pension you get after retirement is quite good.
Important points about EPS pension
A minimum of 10 years of contribution is required for an EPS pension.
If you contribute for 20 years or more, you also get the benefit of a bonus.
If you retire between 50 and 58 years, the pension amount may be slightly less.