EPFO Pension: Private employees are paid a pension after retirement under the EPFO's EPS scheme. Every month, a portion of your employer's EPF contribution is deposited into the EPS. This is the pool from which you receive your monthly pension after retirement. PF funds are deducted in two parts: one for EPF and the other for EPS. But the question is, after how many years do private employees start receiving their pension under the EPS?

Unlike your PF balance, which you can see in your passbook and which accrues interest every year, the pension component operates under fixed rules. The amount you receive depends on a formula, years of service, and salary limit, not market returns. Over the past few years, changes to EPFO ​​notifications, salary limits, and court orders have made the process even more complex, making it difficult for members to understand exactly how much they will receive.

EPFO Pension: At what age do private employees receive their pension?
The main eligibility criteria for EPS pension are simple. To receive a monthly pension (EPFO pension) for life, you must have completed at least 10 years of pensionable service and reached the age of 58. "Pensionable service" here refers to the total number of years for which your employer's contributions to EPS have been deposited, provided you have transferred your PF and not withdrawn it.

From your employer's side, 8.33% of your salary, based on the notified wage ceiling, goes into EPS. The remainder goes into your EPF. Because the EPS portion is limited by the wage ceiling, there is a hard limit on the amount of pension benefit that can be accumulated, regardless of your actual salary.

You can choose to start your pension after age 50, but this will be considered an early pension and the amount will be permanently reduced by a fixed factor. You can also postpone it beyond 58 years (up to 60 years) for a slightly higher pension.

What pension will you receive if you quit your job before 10 years?
If you quit your job under EPS before completing ten years, you will not be eligible for a monthly pension. Instead, you will receive a one-time withdrawal benefit. This is a small lump sum amount calculated using the service table issued by the EPFO. This table determines a factor based on your completed years of service and multiplies it by your pensionable salary.

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