1. What is the EPF Pension Formula?

The EPF (Employees' Provident Fund) pension formula calculates monthly pension benefits for employees in India based on their pensionable salary and years of service under the Employees' Pension Scheme.

2. How Does the Calculator Work?

The calculator uses the EPF pension formula:

Where:

• Pensionable Salary — Average monthly salary (INR)
• Pensionable Service — Total years of service

Explanation: The formula provides a simple calculation method where the pension amount is directly proportional to both the salary and years of service.

3. Importance of Pension Calculation

Details: Accurate pension calculation helps employees plan for retirement, understand their future financial benefits, and make informed decisions about their employment and retirement planning.

4. Using the Calculator

Tips: Enter pensionable salary in INR and pensionable service in years. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered as pensionable salary?
A: Pensionable salary typically refers to the average monthly salary drawn during the contributory period of service, often calculated as the average of the last 60 months' salary.

Q2: Is there a minimum service requirement?
A: Yes, generally a minimum of 10 years of service is required to be eligible for pension under the EPS scheme.

Q3: Are there any maximum limits?
A: Yes, there are maximum pensionable salary limits and maximum service years that can be considered for pension calculation as per EPFO guidelines.

Q4: How often is pension paid?
A: Pension is typically paid monthly to eligible beneficiaries after retirement.

Q5: Can I get both EPF and pension?
A: Yes, employees contribute to both EPF (provident fund) and EPS (pension scheme) simultaneously, making them eligible for both benefits upon retirement.