EPFO Pension Calculator After investing in EPFO, the user has a question in his mind that how much pension he will get after retirement. In this article, we will tell you a formula through which you can easily calculate the pension. Apart from this, you can also avail the benefit of early pension after the age of 50 years.
To continue income after retirement, private job holders invest in EPFO. After investing in EPFO, one gets the benefit of lump sum amount and monthly pension on maturity. A question remains in the mind of EPFO users that how much pension they will get after retirement. We will tell you a formula through which you can easily calculate pension.
What is the formula to calculate pension
Let us tell you that the benefit of pension in EPFO is available when you contribute to EPFO for 10 consecutive years. At the same time, 35 years of service is necessary for pension. The formula to calculate pension is (average salary x pensionable service / 70).
- Average salary includes your basic salary and dearness allowance.
- Pensionable service is the number of years you have worked.
For example, if your basic salary is Rs 15,000 and you work for 35 years, then you can calculate pension using the formula. According to the formula, you will get a monthly pension of 15000 x35 / 70 = Rs 7,500. You can calculate pension by applying this formula.This formula for calculating pension is for employees of the organized sector after 15 November 1995. The rules for employees before this are different.