If you are an employee who feels stressed just thinking about retirement, you no longer need to worry because today we will tell you about an excellent solution. Let us inform you that if you work in a company for 10 years, you will be eligible for a pension upon retirement.
Additionally, under the EPFO pension scheme, you will receive benefits. Through this scheme, you are entitled to a fixed monthly pension, ensuring you no longer need to worry about your future.
In this post, we will discuss the EPFO Pension Hike 2025. So, if you wish to live a comfortable life after retiring from your job, read this article in its entirety. By doing so, you will learn how you can secure a fixed income every month and lead a good life.
EPFO Pension Hike 2025
The Employees’ Provident Fund Organization (EPFO) introduced the Employees’ Pension Scheme on November 16, 1995. Under this scheme, the pension amount is determined based on the duration of an employee’s service.
The best part is that if you work in a company for 10 years, you become eligible to receive a pension upon retirement. Through this scheme, you are provided with a fixed monthly income, enabling you to lead a comfortable life.
When Do You Receive Pension Under EPFO Pension Hike
To clarify, under the EPFO pension scheme, you become eligible for benefits when you reach the age of 58 or above. However, to avail of this benefit, it is mandatory to have a Provident Fund (PF) account.
Thus, funds must be deposited into your PF account during your employment period. Employees with a PF account are entitled to benefits under this scheme.
How Much Pension Can You Receive in 2025
The question arises: how much money can employees receive under the EPFO Pension Scheme?
Here’s the breakdown: EPFO members contribute 12% of their basic salary to the PF account.
The employer’s contribution is divided into two parts:
- 8.33% goes to the Employees’ Pension Scheme (EPS).
- 3.67% goes directly to the PF account.
Through this scheme, employees receive a minimum pension of ₹1,000 per month. However, there is a demand to increase this minimum pension amount to ₹7,500 per month. As of now, no decision has been announced by the government regarding this demand.
How is Pension Calculated Under EPFO in 2025?
Under the EPFO pension scheme, the pension amount is calculated using the following formula:
Monthly Pension = (Pensionable Salary × Pensionable Service) / 70
- Pensionable Salary: The average salary of the last 60 months of service.
For instance, if your monthly salary is ₹15,000, here’s how your pension will be calculated after 10 years of service:
Monthly Pension = (15,000 × 10) / 70 = ₹2,143
Thus, if you work for 10 years in any company, you will receive a monthly pension of ₹2,143. However, only employees aged 58 years or above will be eligible for this benefit.
Aditi is a seasoned author with 4 years of experience specializing in government schemes and news analysis. Her work is known for its insightful coverage and in-depth exploration of policies, providing readers with valuable, timely information.