Private Sector Pension: EPS Eligibility, Calculation & Rules

• Private company employees are eligible for monthly pension after retirement through EPFO's Employees' Pension Scheme (EPS).
• To qualify for EPS pension, an employee must have completed at least 10 years of service with regular EPS contributions and be 58 years old.
• Pension is calculated using a formula: (Pensionable Salary × Total Service Years) ÷ 70, with pensionable salary capped at ₹15,000.
• Employees with less than 10 years of service or those who withdraw PF do not receive monthly pension but get a one-time withdrawal benefit.
• Pension can be started early at 50 (reduced amount) or deferred until 60 (increased amount).

Why It Matters: Understand private sector pension rules for a secure retirement.