EPFO Pension 2025: Age and Rules for Private Employees under EPS
The Employees’ Pension Scheme (EPS), managed by the Employees’ Provident Fund Organisation (EPFO), provides monthly pension to private-sector employees after retirement. A portion of the employer’s EPF contribution is directed into the EPS, forming the fund from which the pension is paid.Eligibility and Age for PensionMinimum Age for Pension:Employees become eligible for a regular monthly pension at the age of 58, which is considered the retirement age under EPS.Minimum service Requirement:You must have at least 10 years of continuous service under the EPS to be eligible for a pension.If you have less than 10 years of service, you may withdraw the EPS amount as a lump sum instead of receiving a monthly pension.Early Pension Option:Employees who retire between ages 50 and 57 can opt for early pension, but the pension amount will be reduced proportionally based on the early retirement age.How Pension is CalculatedThe EPS pension formula is:Pension=Pensionable Salary×Years of Service70\text{Pension} = \frac{\text{Pensionable Salary} × \text{Years of Service}}{70}Pension=70Pensionable Salary×Years of Service
- Pensionable Salary = Average of the last 60 months of salary before retirement (basic + DA)
- Years of Service = Number of years contributed to EPS
- Family Pension: In case of the employee’s demise, the spouse and children may be eligible for a family pension.
- Commutation: A portion of the pension can be withdrawn as a lump sum at retirement, while the rest continues as a monthly pension.