look news india
New Delhi/Lucknow: 2026 is going to prove to be a historic year for crores of employees working in the private sector. The Employees’ Provident Fund Organization (EPFO) has made a revolutionary change in its old method of pension calculation. After this new update, there is going to be a huge increase in the monthly pension received at the time of retirement, due to which the old age of the employees working in sectors like IT, banking and manufacturing will become more secure.
New rule of calculation: no longer 12 months, now average of 60 months
Till now pension was calculated on the basis of last 12 months salary of the employee. But under the new system:
New Formula: Now pension will be calculated on the basis of average salary of last 5 years (60 months) of job.
Benefit: Since the salaries of employees are at their highest in the last years of their careers, the increase in average salary is likely to increase the monthly pension by 20 to 40 percent.
UAN and career stability gained importance
If you have changed companies several times in your career, then you no longer need to panic.
One UAN, One Pension: According to the new rules, the total service period will be calculated by linking all your old PF accounts with a single Universal Account Number (UAN).
Longer service, more benefits: Employees who make regular contributions for 20 to 30 years will benefit most from this new method.
[Image showing EPFO pension calculation comparison between old and new rules]Eligibility required for pension
To avail the benefits of the scheme it is mandatory to fulfill these conditions:
Minimum Service: At least in PF 10 years Regular contribution up to.
salary range: Basic salary should be more than ₹15,000.
KYC Update: UAN should be active and Aadhaar, PAN and bank account should be linked to it.
How to use online pension calculator?
Employees can now estimate their probable pension sitting at home:
Go to EPFO website and select ‘Pension Calculator’ option.
Enter your date of birth, job start date and current average salary.
The system will automatically show the monthly amount you will receive after your retirement.
Step-by-step KYC and transfer process
To avail full pension benefits, update your accounts as follows:
Login: epfindia.gov.in Go to and login using UAN and password.
KYC Update: Go to ‘Manage’ tab and fill your Aadhaar and bank information.
Claim Transfer: By going to ‘Online Services’ ‘One Member – One EPF Account’ Select the option and transfer funds from old companies to the current account.