Pension Calculator: How much pension will you get after 10 years of service? Understand the formula for EPF pension calculation

EPF pension calculation formula: How much pension will you get after 10 years of service?

If you want to know how much pension you will get after 10 years of service under EPF (Employees’ Pension Scheme – EPS), then it is important to understand its calculation.

EPF pension calculation formula:

Pension = (Average monthly salary × Years of service) ÷ 70

Average monthly salary: Average basic salary of last 60 months of service + DA (Dearness Allowance)

Years of service: Period of EPS contribution

70: This is a constant number used in the formula.

Example:

Suppose your average salary of last 5 years was ₹ 15,000 and you worked for 10 years.

Pension calculation:

= (₹15,000 × 10) ÷ 70

= ₹1,500 pension per month

Important points:

EPS pension is available only if you have completed at least 10 years of service.

The maximum monthly salary capping is considered to be ₹15,000.

Pension starts at the age of 58 years.

Reduced pension can be taken at the age of 50 years.