Pension Scheme: There is a facility of EPS (Employee Pension Scheme) for employees working in the organized sector. EPFO operates this pension scheme.
The maximum average salary (Basick Salary + DA) for EPS is Rs 15.0, hence the maximum service for pension is 35 years. After the employee turns 58 years of age, he becomes entitled for retirement.
To get pension, it is necessary to be in regular employment for at least 10 years. There is an option to take pension after 50 years and even before that.
The family gets pension on the death of the employee. If the service history is less than 10 years, they will have the option to withdraw the pension amount at the age of 58 years.
There is an easy formula to calculate pension in EPS. EPS = Average Pay x Pensionable Service/ 70. Here Average Pay means Basic Pay + DA. Which is calculated on the basis of last 12 months.
Please note that this EPS formula will be applicable to employees working in the organized sector after 15 November 1995. There are different rules for earlier employees.