Every employee saves a portion of their salary for the future. The Employee Pension Scheme (EPS) under the Employees' Provident Fund Organization (EPFO) is beneficial for this purpose. This scheme is considered an important basis for daily income after retirement. Recently, after the central government issued a notification regarding the Employee Pension Scheme (EPS 2026), many employees have become curious to know how the pension is calculated. Therefore, many people have this question in their mind: how much pension will they receive each month after completing 10 years of service? 

According to EPFO ​​rules, a minimum of 10 years of pensionable service is required to receive a daily monthly pension after retirement. This pension begins when the employee turns 58. Interested individuals can also opt for early pension after 50 years, with certain deductions. However, if the service is less than 10 years, the monthly pension is not available. In such cases, the employee can obtain a scheme certificate and add service to their next job or withdraw a lump sum from the EPS.

According to the EPFO ​​formula, monthly pension is calculated by dividing pensionable salary and pensionable service by 70. Here, pensionable salary is the average of the basic salary and dearness allowance (DA) for the last 60 months.

If the pensionable salary is ₹10,000, the monthly pension can be ₹1428 after 10 years of service, ₹2857 after 20 years, and approximately ₹5000 after 35 years of service. Similarly, if the pensionable salary is ₹20,000, the monthly pension can be approximately ₹2857 after 10 years of service, ₹5714 after 20 years, and approximately ₹10,000 after 35 years, if the contribution is applied to the actual salary in the respective case.

Currently, the minimum monthly pension under EPS is ₹1,000. Although many retirees are demanding an increase in this limit from ₹5,000 to ₹7,500, the government has not yet made a final decision on this matter. For employees who change jobs, it's beneficial to close their old EPF and EPS accounts and transfer them to the new company using their UAN. This ensures uninterrupted pension service and helps them earn a higher pension in the future.

PC: ndtv india