Dear all, Can anyone know how pension calculation is done when we finish off our services ? Regards, R.Rathina Kumar
From India, Madras
Legal Analyst, Hrm
Assistant Engineer, Indian Telephone Industries,
Assistant Of Pf Hr
+2 Others


Dear Rathin,
You have not mentioned whether you are working on some pensionable job in any Government department or a PSU. I don't think any other public limited corporate house is allowing any pension to its employees.
You may also need to clarify whether you want information on pension calculation for yourself or for general knowledge. If you want that for yourself, you will have to intimate how many years of service you have rendered so far or will be completing how many years' of service on the date of your retirement?
If you are dealing with pension cases in some Government office or PSU, a casual nature of pension calculation may not help you much. In that case, better you purchase a book, called "Swamy's Penion Rules Made Easy", besides the main book on Pension Rules, named "Swamy's Pension Compilation on CCS (Penion) Rules)". These books will be available on any book shop that sells Government publications (NOT any general book shop).

From India, Delhi

I have been working in a Pvt Ltd company, one of my key deliverable is to take induction training programme for the new incumbment, relatedly trainees are asking me about the pension calculation & how much they would enjoy in future to the contribution that we normally remit in Regional PF office (Employer PF - 3.67 % + Pension 8.33 % )
And now I need clarification on how pension is calculated @ end of our services (On the red highted contribution).
Require only the formula & not the eligibilty.
Thanks in Advance

From India, Madras

Induction training should not be conducted without adequate preparation. It can not a case of single question of how to calculate pension. You may have to face several such questions on pension or employee provident topics from the participants during training. So, it is advisable to go through properly the Employees Provident Fund Act and Rules before replying questions on the topic of pension. Such books are readily available at any book shop dealing with Government publications in major cities.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi

From India, Delhi
Jitendra Tomar

Dear pls find the attached Formula Sheet for pension calculation that will help you Thaks Jitendra Tomar 9313353831
From India, Ghaziabad

Attached Files (Download Requires Membership)
File Type: xls PENSION CALCULATION.xls (16.5 KB, 6194 views)


There is no upper limit for Eps-95 pension. For pension calculation, the service will be taken into 2 parts. Service before 16.11.95 and service w.e.f 16.11.95. The first one is called as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 11 years, 12 to 15 years, 16 to 19 years and 20 & above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 & 150 respectively. For Rs. 2500 & above this will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. In the case of those attain 58 years after 16.11.95, the above compensation will be multiplied by a factor stipulated in table B, according to the difference between 16.11.95 and the date of completion of 58 years.

For pensionable service there is a formula to calculate pension. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorised in to 3. 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory celing of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In case of 2nd, pensionable salary is Rs. 6500. In other two cases, pensionable salary will be the average of last twelve months. Also if pensionable service is 20 years & above 2 year's bonus will be given.

For details please see the web site :

EPFO <link updated to site home>

One example I shall quote.

Date of Birth - 2.1.1961

Date of join - 23.2.1987

Salary on 16.11.95 - Rs. 2500 & above

Salary on completion of 58 years on 1.1.2019 - Rs. 6500 (Statutory Ceiling)

Past Service - 8 yr 9 m (approx) rounded to 9 years

Compensation - Rs. 85

Factor as per Table B (for less than 24 years, i.e the difference between 16.11.95 & 1.1.2019) - 6.102

(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)

Past Service Benefit - 85 x 6.102 = Rs. 519 - (A)

Pensionable Service - 23 years

Bonus (Service is 20 & above) - 2

Pensionable Salary - Rs. 6500

Pensionable Benefit - 6500 x 25 / 70 = 2321 - (B)

Total Pension - (A) + (B) = Rs. 2840

Besides the above method calculation there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorised into three.

1. Date of commencement of Pension before 16.11.2000

2. Date of commencement of Pension between 16.11.2000 & 16.11.2005

3. Date of commencement of Pension after 16.11.2005

As the first two categories are already over, I shall a give a brief on third.

Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 yrs or more service. If it is less than 24 yrs, this will be reduced in proportionate (amount x actual service / 24). However this amount will be subject to a minimun of Rs. 450.

I shall insert Excel work sheet to calculate pension. Enter Date of Birth, Date of Join, Date of Seperation from Service, Salary on 16.11.95, Salary on Seperation from Service ( in compliance with the contribution to pension fund) and break in service before and after 16.11.95, if any in green colour column. The results will appear in yellow colour column. The red colour is for static information.

In case of any error or suggestion, please notice to me.



ITI Employees' Association,

ITI Ltd, Palakkad - 678 623, KERALA

Ph. +91 9447 467 667

From India, Bangalore

Attached Files (Download Requires Membership)
File Type: xls EPF Pension.xls (26.0 KB, 2393 views)

Can anyone know how pension calculation is done when we finish off our services ? Date Of Birth 03/01/1980 Date Of Joining 05/04/2010 Thanks & Regards Mahesh Chand 9136406058
From India, Delhi
employees taken of pension 50 years(Half pension) please give calculation advice for me Employees Salary is 15000/- per month and he was join 01.08.1989
From India, Thane

Dear Satyavankorgaonkar, Kindly provide Date of birth and Date of relieving from the job. I feel his salary on 16.11.1995 is above Rs. 2500. Abbas.P.S
From India, Bangalore
It is surprising to note that the pensionable salary is not calculated on the basis of laid down principle of average of last 60 months' salary. Instead the calculation is done on the basis of salary i.e 6500 from Nov 95 to Aug 2014 and 15000 from Nov 14 till date of attaining pensionable age of 58 years.
Can anyone tell what should be correct of calculating average i.e. last 60 months' salary OR as calculated like what RPFC .

From India, Barhiya

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