EPF Pension Calculation: For millions of private sector employees, the EPFO ​​is their largest provident fund. Did you know that a portion of your hard-earned money is directly deposited into your EPS account? Let's understand the magical math and rules of the monthly income you receive after retirement.

EPF Pension Calculation: For millions of private sector employees, PF is not just a savings account but a lifeline for old age. But people often wonder how much money they will receive each month after retirement. If you're also confused about your pension, this simple EPFO ​​math will be very useful.

10 years of service is the golden rule.

According to EPFO ​​rules, 12% of every employee's basic salary and DA goes into their PF account. Of the employer's (company's) 12% contribution, 8.33% is deposited directly into the Pension Fund (EPS). The most important requirement for pension eligibility is that you must have served for at least 10 years. According to the rules, you begin receiving a monthly pension after the age of 58.

What is the Super Pension Formula?

The amount of your pension depends entirely on your years of service and your average salary over the last 5 years. The EPFO ​​uses a specific formula for this:

Pension = (Average salary over the last 60 months × Total years of service) / 70

How much pension is a salary of Rs. 15,000?

Let's understand this with a simple example. If your pension is fixed at Rs. 15,000 and you have contributed for 10 years, your pension will be approximately Rs. 2,143 per month. Meanwhile, if you have 25 years of service, this pension will increase to approximately ₹5,357. This means that the longer you serve, the heavier your pocket will be after retirement.