The Employees’ Pension Scheme is a social security initiative offered by the Employees’ Provident Fund Organisation (EPFO). This scheme aims to help employees in the organised sector, providing a pension post-retirement at 58. The Employees’ Pension Scheme (EPS) was launched on November 16, 1995, replacing the earlier Employees’ Family Pension Scheme of 1971. This social security initiative is managed by the Employees’ Provident Fund Organisation (EPFO) and aims to provide pension benefits to EPF subscribers, as well as their family members and nominees.
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Eligibility for Pension:
To qualify for a pension under EPS, subscribers must fulfill certain criteria. Primarily, they need to have completed at least 10 years of service and retire at the age of 58. However, if an EPF subscriber reaches the age of 58 without retiring, they are still eligible for a pension. Additionally, subscribers who have reached the age of 50 and have over 10 years of service are also eligible for a reduced pension.
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Age:
Age plays a significant role in determining the pension amount. Subscribers who complete 20 years or more of service receive a bonus of two additional years. Those who retire between the ages of 50 and 58 can claim a pension at reduced rates. Specifically, for each year below 58, the pension is reduced by 4%.
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Calculating Your Pension:
The pension amount is determined based on two main factors: the number of years of contribution to the pension fund and the average salary during the last 60 months of service.
To calculate the pension, subscribers can use the EPF website by following these steps:
- Visit the EPFO website at epfindia.gov.in and select ‘online services’ from the left side menu.
- Click on the ‘EDLI & Pension Calculator’ link, which will redirect you to a new page.
- On this page, you will find the ‘EDLI & Pension Calculator’. It is advisable to first read the instructions on ‘how to use a pension calculator’.
- Enter the required inputs in the calculator on the new page to determine your pension amount.
