1. What is the EPS Pension Formula?

The Employees' Pension Scheme (EPS) formula calculates monthly pension benefits based on pensionable salary and years of service. It provides retirement income for employees covered under the Employees' Provident Fund scheme.

2. How Does the Calculator Work?

The calculator uses the EPS pension formula:

Where:

• \( Pensionable\ Salary \) — Average monthly salary (INR)
• \( Pensionable\ Service \) — Total years of service
• \( 70 \) — Fixed divisor as per EPS rules

Explanation: The formula calculates monthly pension amount by multiplying pensionable salary with years of service and dividing by the fixed factor of 70.

3. Importance of EPS Pension Calculation

Details: Accurate pension calculation is crucial for retirement planning, ensuring financial security for employees after their working years, and proper compliance with EPFO regulations.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is considered as pensionable salary?
A: Pensionable salary is the average of the last 60 months' salary before exit from employment, subject to the wage ceiling prescribed by EPFO.

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

Q3: What is the maximum pension amount?
A: The maximum pension depends on the wage ceiling and maximum service years as per EPFO guidelines.

Q4: Can I get pension before 58 years?
A: Reduced pension is available from 50 years of age, but full pension starts only at 58 years.

Q5: Is the pension amount fixed forever?
A: No, pension amounts are revised periodically by EPFO based on fund availability and government directives.