Learn how to get a monthly pension from EPFO after just 10 years of work. Discover eligibility, benefits, calculation.
In a significant move benefiting millions of workers across India, the Employees’ Provident Fund Organisation (EPFO) has introduced a provision that allows employees to receive a monthly pension after completing just 10 years of service. This update provides a sense of financial security to those who have diligently contributed to the EPF scheme but may not have served a full career tenure. Understanding how the EPFO gets monthly pen works and the eligibility criteria is essential for every salaried employee.
Understanding EPFO’s Monthly Pension Scheme
EPFO runs the Employees’ Pension Scheme (EPS) under which employees who contribute for a minimum period are eligible to receive a monthly pension after retirement. Earlier, a minimum of 10 years of contributory service was required, and this remains the threshold for pension eligibility. The scheme is applicable to employees earning up to Rs. 15,000 per month in basic salary and dearness allowance, and both employer and employee contribute to the EPF account.
Read More | EPFO 3.0: Top 5 Updates
Eligibility Criteria for EPFO Monthly Pension
To be eligible for a monthly pension from EPFO, employees must fulfill the following conditions:
- Must have completed at least 10 years of contributory service
- Should be at least 58 years of age for regular pension
- Can opt for early pension from age 50 (with reduced benefits)
- Must be an EPFO member and contributing under EPS
Benefits of Getting Monthly Pension Through EPFO
This scheme ensures financial independence post-retirement. Here are the key benefits:
- Guaranteed lifelong pension
- Pension to family members in case of the member’s demise
- Tax benefits on contributions
- Support for lower-income employees who might not work until 60
Contribution Structure
| Contributor | EPF Contribution | EPS (Pension) Contribution |
|---|---|---|
| Employer | 12% of Basic + DA | 8.33% (Part of Employer share) |
| Employee | 12% of Basic + DA | N/A |
Note: Only the employer contributes towards the EPS.
How Pension is Calculated
Pension is calculated using the formula: (Pensionable Salary x Pensionable Service) / 70
- Pensionable Salary is the average salary of the last 60 months
- Pensionable Service is the number of years you’ve contributed to EPS
Example: If your pensionable salary is Rs. 12,000 and your service is 10 years, the monthly pension would be: (12,000 x 10)/70 = Rs. 1,714 per month approximately.
Documents Required to Claim Monthly Pension from EPFO
- EPF Scheme Certificate
- Aadhaar card
- Bank passbook or cancelled cheque
- PAN card
- Birth certificate for age proof
- Form 10D (Application for Pension)
Steps to Claim Monthly Pension from EPFO
- Visit the official EPFO portal
- Log in using your UAN and password
- Submit Form 10D under the ‘Pension’ section
- Upload required documents
- Verify details and submit the application
Once verified by the EPFO office, pension disbursement will start.
Key Highlights
- You only need 10 years of service for pension eligibility
- Monthly pension starts at age 58, or early pension at 50
- Family pension available in case of death of member
- Lifelong support for retired employees
- Helps lower-income workers receive benefits even after early exits
Common Mistakes to Avoid
- Not updating KYC details in EPFO account
- Assuming full employer contribution goes to pension
- Not applying within the stipulated time
- Incorrect or missing documentation
EPFO Monthly Pension: Things You Should Know
- EPS is applicable only for employees with basic salary up to Rs. 15,000
- If you exit before 10 years, you can withdraw EPS but won’t get monthly pension
- No pension if service years are less than 10 unless transferred from past accounts
- Higher pension option available if you opt in and contribute above ceiling
Read More | EPFO Direct Benefits
EPFO Get Monthly Pension After 10 Years: FAQs
Q1: Can I get monthly pension if I have worked for only 10 years? Yes, you are eligible for EPFO’s monthly pension if you have completed 10 years of service.
Q2: What is the minimum age to receive EPFO pension? The minimum age is 58 years. You can also apply from 50 years with reduced pension.
Q3: Is it necessary to work with the same employer for 10 years? No, total contributory service across multiple employers counts as long as your EPF is transferred.
Q4: Can I increase my pension amount? Yes, by opting for higher contribution under EPS and extending your service duration.
Q5: How do I check my pension status? Log in to the EPFO member portal and check under the ‘Pension’ section after applying with Form 10D.
This new rule makes it easier for employees to enjoy retirement benefits even if they have not completed a full tenure. If you’re part of the workforce and meet the criteria, make sure you’re prepared to claim your EPFO monthly pension when the time comes.