For example, if you joined EPS at the age of 25 and retired at age of 58 then you may get Rs 7071 as a monthly pension. If you don’t opt for the higher pension: The EPS pension is calculated on the average of 60 months’ average pensionable salary at the time of retirement. How much pension can you get: The formula for calculating EPS pension is “Pensionable Salary X Pensionable Service)/70” If you opt for the higher pension option then the EPFO will retrospectively deduct the amount from your PF account towards EPS from your joining date or November 1, 1995, whichever is later.Īlso Read: 5 reasons to apply for higher pension What will happen if you opt for the higher pension: As Supreme Court has said that employees will get a chance to opt for a higher EPS contribution based on actual pay, 8.33% of your Basic Pay, i.e. Of the employer’s contribution, which is also equal to 12% of your Basic Salary, Rs 1250 goes towards EPS while the remaining Rs 3550 goes to your EPF account. What is happening now: 12% of your Basic Pay (Rs 4800) goes to the EPF account every month. Rs 15 lakh Fixed Deposit: SBI scheme offers better interest rate than PPF, NSC, KVP, Post Office FD
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