EPS Pension Calculator
by Zoho Payroll| Components | Higher Pension Scheme | 15K Capped Scheme |
|---|---|---|
| Pension Amount Monthly pension Amount |
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| EPF Withdrawal Amount At the time of retirement |
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| Components | Higher Pension Scheme | 15K Capped Scheme |
|---|---|---|
| Initial EPS Contribution | ||
| Latter EPS Contribution | ||
| Total EPS Contribution |
| Components | Higher Pension Scheme | 15K Capped Scheme |
|---|---|---|
| EPF Employee (12% of Basic + DA) |
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| EPF Employer Higher Pension Scheme ((12% of Basic + DA) - EPS) 15K Capped Scheme ((12% of Basic + DA ) - 1250) |
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| Total EPF Amount | * |
| Components | Higher Pension Scheme |
|---|---|
| Pension Amount Monthly pension Amount |
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| EPF Withdrawal Amount At the time of retirement |
* |
| Components | 15K Capped Scheme |
|---|---|
| Pension Amount Monthly pension Amount |
|
| EPF Withdrawal Amount At the time of retirement |
| Components | Higher Pension Scheme |
|---|---|
| Initial EPS Contribution | |
| Latter EPS Contribution | |
| Total EPS Contribution |
| Components | 15K Capped Scheme |
|---|---|
| Initial EPS Contribution | |
| Latter EPS Contribution | |
| Total EPS Contribution |
| Components | Higher Pension Scheme |
|---|---|
| EPF Employee (12% of Basic + DA) |
|
| EPF Employer Higher Pension Scheme ((12% of Basic + DA) - EPS) |
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| Total EPF Amount | * |
| Components | 15K Capped Scheme |
|---|---|
| EPF Employee (12% of Basic + DA) |
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| EPF Employer 15K Capped Scheme ((12% of Basic + DA ) - 1250) |
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| Total EPF Amount |
The Employees' Provident Fund (EPF) is a retirement savings scheme for salaried individuals in India. The EPF scheme allows employees to save a portion of their salaries each month. The accumulated amount can be used by employees when they retire, resign, or during times of need.
Introduced in 1995, under the Employees' Provident Funds & Miscellaneous Provisions Act, the Employees' Pension Scheme (EPS) is a social security scheme that provides a monthly pension to employees and their dependents once the employee retires from work.
EPS is applicable to all those who are enrolled under the EPFO before the 1st of September 2014 and to those who earn less than ₹ 15,000 per month and have become members of the EPFO later.
The central government made an amendment to the EPS act and capped the EPS wages at ₹ 15,000 in 2014. According to this amendment, the maximum amount an employer can contribute towards EPS is 8.33% of ₹ 15,000 which is ₹ 1,250.
Employees who joined EPFO before the 1st of September, 2014 can opt for this higher pension scheme by submitting a joint option form. Under this scheme, eligible employees can contribute 8.33% of their actual basic pay instead of the capped wages.
Note: The employer contributes 12% of the employee's basic pay and dearness allowance towards EPFO. Within this 12%, 8.33% of the employer's contribution goes towards the EPS fund.
- Apart from this, the government of India contributes 1.16% of the employee's EPS wages on the capped limit of ₹ 15,000.
- In the higher pension scheme for employees whose monthly salary is above the capped limit, the government will contribute 1.16% on ₹ 15,000, and the employer must contribute the additional 1.16% on the amount exceeding the capped limit of ₹ 15,000 from within the overall employer contribution of 12%.
For example, let's assume an employee's monthly EPF wages are ₹ 50,000 and they opt for the higher pension scheme. Their monthly contribution for EPS will be 8.33% of ₹ 50,000 which is ₹ 4,165. Since the employee's EPF wages is more than ₹ 15,000, the employer will contribute the additional 1.16% (from within the overall employer contribution of 12%) on the remaining ₹ 35,000 which is ₹ 406. The total EPS contribution will be ₹ 4,165 + ₹ 406 = ₹ 4,571. The remaining amount in the 12% will be contributed as the employer share of EPF which would be ₹ 1,429 (₹ 6000 - ₹ 4571).
- The free EPS pension calculator collects employer's contribution towards EPF and EPS which can be found on your EPFO Passbook to determine the accumulated employer contribution.
- Employer's total EPF and EPS share is calculated based on this accumulated value and employee's basic pay and dearness allowance for that month and the expected percentage of growth in salary.
- Employee's total contribution towards EPF over the years is determined based on employee's contribution, basic pay and dearness allowance for the current month, and the expected percentage of growth in salary.
- EPF and EPS corpus amounts post-retirement under both schemes are calculated using the above data and the interest rate offered by EPFO on EPF accumulations, which is assumed to be 7.5% per year.
- The monthly pension is calculated based on the following pension formula:
Pension = (Pensionable salary * Pensionable service) / 70Here, the pensionable salary is the sum of basic pay and dearness allowance earned in the last 60 months, whereas pensionable service means the total number of years worked in the sector.
- Enter your employee and employer contribution towards EPF and EPS as per the closing balance mentioned on your EPFO passbook.
- Enter your monthly EPF wages amount which is a sum of basic pay and dearness allowance.
- Enter your expected salary growth in percentage.
- Provide the date when you first joined service and the estimated date of retirement.
- Click Calculate total amount.
- The tool will display a comparative data of your monthly pension and corpus amount under the current scheme and the higher pension scheme.
- Go to the EPFO's unified portal.
- Click "Pension on Higher Salary: Exercise of joint option" from the Important links tab placed on the right side of the screen.
- A new page with the "Registration request for exercising of Joint option" will open. Fill the required fields with your UAN, Aadhaar number, and date of birth.
- After successful filing of the form, submit the joint option to obtain a higher annuity during retirement years.
