Pension for private employees
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Good news for those with a private job! You will get pension after 10 years of service

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An important information for private sector employees: If you have worked in the organised sector for at least 10 years, you become entitled to pension under the Employees’ Pension Scheme (EPS) of the Employees’ Provident Fund Organisation (EPFO).

Prerequisites for receiving pension under EPS:

Service period: Minimum 10 years of contributory service.

Age limit: Completed 58 years of age.

Membership: Be a registered member of the EPFO.

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How is pension calculated?

The pension amount is calculated using the following formula:

Monthly pension = (Pensionable salary × Pensionable service) / 70

Pensionable salary: Average salary of the last 60 months before retirement (limited to a maximum of ₹15,000).

Pensionable service: Total service years contributed to EPS.

Example:

If an employee’s pensionable salary is ₹15,000 and he has completed 10 years of service, his monthly pension will be:

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(₹15,000 × 10) / 70 = ₹2,143 per month

It is important to note that the higher the service period, the higher the pension amount.

Options to receive pension:

Superannuation pension: Full pension benefits are available on completion of 58 years of age, whether you are in service or not.

Early pension: If a member leaves the job after completing 50 years of age and has completed at least 10 years of service, he may be entitled to pension at reduced rates.

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So, if you are employed in the private sector and fulfil the above conditions, you can get pension benefits after retirement, which will help in your future financial security.