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EPFO Pension: Understand Your Entitlement, Full Calculation & Formula Detailed
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EPFO Pension: Unlocking Your Retirement Income - Full Calculation & Formula Explained
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News18
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16-02-2026, 15:07
EPFO Pension: Unlocking Your Retirement Income - Full Calculation & Formula Explained
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EPFO is a key retirement planning tool, especially for private sector employees, with 12% of salary deposited into PF.
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8.33% of the PF contribution goes into the Employee Pension Scheme (EPS), while 3.67% remains in the PF account.
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To receive a pension, an employee must complete a minimum of 10 years of service, with pension typically starting after age 58.
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The monthly pension is calculated using the formula: Pensionable Salary x Pensionable Service / 70.
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Pensionable Salary is the average salary over the last 60 months, and Pensionable Service is the total years of contribution (min 10 years).
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