What is a Pension Calculator?
A Pension Calculator is a free online tool that helps you calculate monthly pension from eps (employee pension scheme) or government service based on salary and years of service. FinCalc Pro offers India's most accurate Pension Calculator with instant results, detailed charts, and step-by-step breakdowns — completely free with no login required.
Pension Calculator Formula
EPS-95 pension formula: Monthly Pension = (Average pensionable salary × Years of service) / 70. Pensionable salary is capped at ₹15,000/month for most employees. Minimum 10 years service required. Pension starts at age 58.
How to Use Pension Calculator
- Enter your average monthly salary over last 5 years (capped at ₹15,000 for EPS)
- Enter total years of pensionable service (minimum 10 years)
- For government employees: enter basic pay and DA as per 7th Pay Commission
- Click Calculate to see estimated monthly pension at retirement
- Compare with NPS pension for private sector employees
Pension Calculator — Example
EPS: Salary ₹15,000 (capped) | Service: 30 years → EPS Pension = (15,000 × 30) / 70 = ₹6,428/month | Note: Very low — supplement with NPS or personal investment
Benefits of Using Pension Calculator
- Know your EPS pension well before retirement to plan supplemental income
- Understand why EPS-95 pension is insufficient for most retirees
- Compare government pension vs private sector pension options
- Plan additional NPS or equity SIP to bridge pension gap
Frequently Asked Questions — Pension Calculator
What is EPS-95 pension?
EPS-95 (Employee Pension Scheme 1995) is the pension scheme for EPFO members. 8.33% of employer's 12% EPF contribution goes to EPS. The monthly pension at retirement (age 58) is calculated as: (Pensionable Salary × Pensionable Service) / 70. Minimum 10 years service required.
Why is EPS pension so low?
EPS pension is low because the pensionable salary is capped at ₹15,000/month regardless of actual salary, and the formula divides by 70. Maximum possible EPS pension (35 years service) = (15,000 × 35) / 70 = ₹7,500/month — barely enough. The Supreme Court ruled in 2022 on higher pension option for some employees.
Can I get a higher EPS pension?
Following EPFO's 2023 guidelines based on SC ruling, employees who were part of EPS before 1 Sep 2014 and contributed above the wage ceiling may be eligible for higher pension. Contact your EPFO regional office or employer HR. The deadline for applications was May 2023.