Pension After Retirement: Everyone tries to get a pension after retirement, whether from the government sector or private sector. According to EPFO rules, some of the currently working employees are eligible to receive a pension. But how much money will you get as a pension? There are some equations to decide your pension amount.
At present, 12 percent of the basic salary + DA of the employee is deposited in the PF account every month. The employer’s contribution is also 12 per cent. Out of the contribution made by the company, 8.33 percent of the amount goes to the employee’s pension fund (EPS) and the remaining 3.67 percent goes to the PF account.
According to the existing rules, the maximum limit of pensionable salary is 15 thousand rupees. In this case, 15000 X 8.33 /100 = 1250 rupees will go to his pension account every month.
Let’s say you started a job at 23 and retire at 58. That is, the duration of your job is 35 years. The maximum pensionable salary under the old pension scheme is Rs 15000. The pensionable salary of any employee for the last 60 months before exiting EPS is his/her average monthly salary.
Monthly Pension = Pensionable Salary X Pensionable Service /70.
Monthly pension: 15,000X 33/70 = Rs 7500
If the employee contributes to EPFO, then after working for 10 years, he becomes entitled to get pension. However, this pension is given to him after completing 58 years of age. Pension can be taken even after 50 years, but pension will be available with deduction till now. If you leave the job at the age of 50 years, then you will have to wait for the completion of 58 years of age for pension, after which the pension will be available. If he is there, he will not get the benefit of pension. If you do not complete 10 years of service, then the entire pension fund can be withdrawn.