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EPS Calculation: How Much Pension After 10 Years with ₹20,000 Basic Salary? See the Math!
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News18•26-09-2026, 19:08
EPS Calculation: How Much Pension After 10 Years with ₹20,000 Basic Salary? See the Math!
- •EPFO's Employees' Pension Scheme (EPS) offers significant support for financial independence post-retirement.
- •Employees need at least 10 years of pensionable service to receive a regular monthly pension.
- •The EPS pension formula is: Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70.
- •With a pensionable salary of ₹20,000 and 10 years of service, the monthly pension would be approximately ₹2,857.
- •EPFO rules have changed, increasing the maximum basic salary limit for EPF from ₹15,000 to ₹25,000.
Key Questions Answered
Under the Employees' Pension Scheme, the monthly pension is calculated using the formula (Pensionable Salary × Pensionable Service) ÷ 70. Assuming a pensionable salary of ₹20,000 and 10 years of service, the calculation is (20,000 × 10) ÷ 70, resulting in approximately ₹2,857 per month.
According to the Employees' Provident Fund rules, an employee must complete at least 10 years of pensionable service to be eligible to receive a regular monthly pension.
The government has increased the maximum basic salary limit or wage ceiling for coming under the EPF from ₹15,000 to ₹25,000, which is estimated to bring about 51 lakh additional private sector employees under EPFO.
