Employees working in the private sector have a provident fund to meet their post-retirement needs. Apart from this, on retirement, the employee gets the entire amount of his Employee Provident Fund (EPF). With this, their pension starts under the Employee Pension Scheme (EPS). Along with this, both EPF and EPS are part of the contribution made by the employee to the working life. The minimum pension under the same EPS is fixed at Rs 1,000 per month, although the maximum monthly pension is Rs 7,500.

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If you want to know how much monthly pension you can get under EPS, then for this you may need an EPS calculator or EPS pension calculator. The 12% contribution made by the employer under the employee's provident fund does not go to the entire provident fund, but some part of it goes to the EPS as well. Apart from this, the basic salary for pension in EPS is Rs 15,000, of which 8.33 percent goes to EPS. This means that out of the employee's contribution to 15,000 or more basic salary, Rs 1250 per month will go to EPS. Earlier the basic salary was kept at Rs 6,500 and then only Rs 541 used to go in EPS. Let's understand by example - if the basic salary of an employee is Rs 15,000, then Rs 1250 can be kept in EPS. At the same time, even if the basic salary of an employee is 35,000, only Rs 1250 will be kept in EPS. But if the basic salary of an employee is Rs 14,000, then Rs 1166 will be kept in EPS. All the money going to EPS is kept with the government and after the retirement of the employee, pension starts from it.

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In addition, the amount of monthly pension depends on the employee's duration of service and a fixed formula. With this, in EPS formula, the first salary and service period are multiplied and then divided by 70. The maximum basic salary for the same EPS is 15,000, so even if the basic salary is more than 15,000, it is calculated from 15,000 only. In this case, the maximum monthly pension is Rs 7,500 with the maximum basic salary fixed. Let us understand by example. If an employee has worked for 30 years and his basic salary is more than 15,000, then his maximum monthly pension will be (15000 * 30) / 70 = Rs 6429 as per the formula.

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