Date : 15.7.2016

How Much Pension Will  Get Under EPS

Government has increased the minimumpension amount in the Employee Pension Scheme. Now employees of organized sector will get minimum rupees 1000 per month. This was much awaited because only 500 rupees per month was meager to survive. Earlier employee used to get at least 500 rupees pension monthly.

But very few people are aware about this pension facility for every employee. They don’t have an idea that how much pension they will get after the retirement. Today I will tell you the features of Employee Pension Scheme and pension calculation

Who Gets Pension Through EPS

Every organized sector employee gets pension if he contributes for EPF. There are 6 crore such employee in India. Employee Pension Scheme is clubbed with employee provident fund.

What Is The Contribution For Employee Pension Scheme

According to PF rules employee has to give 12.5% of its basic salary plus DA for EPF. Employer also match the amount. But unlike your whole contribution goes to EPF, some contribution by employer goes to EPS kitty. From the employer contribution maximum ₹ 1250 (8.33% if salary less than 15,000) goes for Employee Pension Scheme. Remaining amount goes to EPF and EDLIS.

Employee Social Security Scheme and Its Contribution Details
	Employee	Employer
Employee Provident Fund (EPF)	12%	3.67%
Employees’ Pension Scheme (EPS)	0	8.33%
Employees Deposit Linked Insurance (EDLIS)	0	0.5%
EPF Administrative  charges	0	1.1%
EDLIS Administrative charges	0	0.01%

How Much Pension Will they Get – Calculation

Do you have idea how much would be your monthly pension? Probably your answer will be NO. And the reason behind this ‘No’ is complex calculation of employee pension. But if you dig deep,calculation of pension amount is very simple for most of the people. Pension account of 95% employee gets only 1250 rupees per month. Also most of the employee in India has their job after 1995.Calculation of pension money for those workers who fulfill above two criteria is very easy. I Will tell the pensioncalculation method for those employees who got their job after 1995 and for those who got earlier.

• Minimum Pension they will get – ₹ 1,000