Stories
EPFO Pension Calculator: Know Your Pension on Rs 25000 Salary
- •EPFO caps the maximum salary at Rs 15,000 for pension calculation, even if your actual monthly salary is Rs 25,000.
- •With 30 years of pensionable service, the estimated normal monthly pension at age 58 comes to around Rs 6,857.
- •Starting your pension early at age 50 results in a permanent 32 percent reduction due to an annual 4 percent deduction.
- •Deferring your pension start to age 60 can increase the monthly amount by 4 percent for each delayed year.
Key Questions Answered
The monthly pension is calculated using the formula: (Pensionable Salary multiplied by Pensionable Service Period) divided by 70. According to EPFO rules, the maximum pensionable salary is capped at Rs 15,000, and it is generally determined based on the average pensionable salary of the last 60 months.
Eligible members can start an early pension from the age of 50 provided they have a minimum pensionable service period of 10 years and leave their job. However, taking the pension before the stipulated age of 58 results in a permanent reduction of 4 percent for each year advanced, leading to a 32 percent total reduction at age 50.
Yes, eligible members can defer the start of their pension up to the age of 60. For every full year the pension is delayed past the age of 58, members receive an additional benefit of 4 percent, allowing for a total increase of about 8 percent if deferred until age 60.
