EPS Pension Calculation: Rs 68,000 basic salary, 15, 28, and 32 years of service, find out your monthly pension

June 18, 2025

EPS Pension Calculation: Rs 68,000 basic salary, 15, 28, and 32 years of service, find out your monthly pension

The Employee Pension Scheme (EPS) provides a monthly pension to employees after age 58, based on their salary and years of service. For a basic salary of Rs 68,000, the monthly pension would vary depending on the years of service. Let’s calculate the pension for 15, 28, and 32 years of service to understand the benefits.

How Employee Pension Scheme work?

Employee and employer both contribute 12 per cent of your basic salary to a fund. Some of this money goes into your EPS account.

Who is eligible for Employee Pension Scheme (EPS)?

Those who have attained the age of 50 years for early pension and 58 years for regular pension.
You must be a member of the EPFO.
You must have completed 10 years of service.

How do EPS contributions work?

When it comes to saving for retirement, both you and your employer contribute to it. Here’s how it works: You and your employer each put 12 per cent of your basic salary into a fund.
Your employer’s 12 per cent is split into two parts: 8.33 per cent goes into the Employee Pension Scheme (EPS) and 3.67 per cent goes into the Employees’ Provident Fund (EPF).

Benefits of Employee Pension Scheme (EPS)

Provides a fixed income after retirement at 58 years or early retirement at 50 years
Allows withdrawal of pension at 58 if the member leaves service 10 years prior
Provides a monthly pension in case of total and permanent disability
Offers a family pension in case of the member’s death, before or after the pensionable service period.

EPS Nomination: How to nominate beneficiary?

An EPS nomination lets you choose a beneficiary who will receive your pension benefits if something happens to you. You can nominate family members like your spouse, kids, or parents. If you don’t have family, you can choose anyone.

Under the Employee Pension Scheme, are employees the only beneficiaries of the fund?

The benefit of the EPS is paid to the employee or the family of the employee, in his or her absence.

What are minimum and maximum EPS amounts?

The minimum monthly pension that you will receive is Rs 1,000, and the maximum is Rs 7,500.

EPS calculation conditions

The formula for calculating the EPS pension is:
Monthly pension amount = (Pensionable Salary x Pensionable Service) / 70.

Monthly Pension Calculation: Pensionable service, 15, 28, & 32 years

The monthly pension amount you will receive will depend on your pensionable salary and service. The average salary used in the formula is the average of your basic salary plus your DA for the last 12 months.