Mohanasundaram_Subramani
Sr Officer Human Services
Abbasiti
Assistant Engineer, Indian Telephone Industries,
+3 Others

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
I want to know about pension calculation formulae. the pensionable salary, service, past service benfit etc. give me some examples to understand. can anybody guide me?
Dear VGK,

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 of 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.

Abbas.P.S, ITI LTD, PALAKKAD - 678 623.

+91 9447 467 667


Attached Files
File Type: xls EPF Pension.xls (27.5 KB, 2872 views)

Resp. Sir,
My Basic salary now Rs. 15330/- every month deduct EPS Subscription Rs. 541/-
My Joining job 25.10.1999 and Retirement Date 31.07.2030 after 60Year and my Date of Birth 19.07.70
Pension start 58 Years after that time my Pension?
Please help..
Thanks...
Lukman Vahora

Dear Sir,
Wef Oct 2014, Pensionable salary is revised from Rs 6500 to Rs 15000, with max employer's contribution Rs 1250/- (8.33% of 15000).
In the EPF Pension calculator, necessary changes need to be done. In the cell I26, the formula "=MIN(D26,6500)" needs to be changed to "=MIN(D26,15000)".
I have attached file with correction and highligthed cell I26 with brown color.


Attached Files
File Type: xls EPF Pension.xls (27.5 KB, 313 views)

How much will be the pension in case of - 3) Above Rs. 6500 & opted to contribute on actual salary. Recently Supreme Court has given upheld to effect to pay pension as per contribution.
Recently Supreme Court has upheld verdict of Kerala HC to pay pension as per actual salary. Then, How much will be the pension in case of - 3) Above Rs. 6500 & opted to contribute on actual salary. And is there any maximum pension payable?
Greetings Abbs sir,
In my case need my pension calculation
Date of Birth 10.07.1958
Date of Joining 02.11.1981
Break in service NIL
date of completion of 58 years 09.07.2016
Date of Retiement 31.07.2016
salary as on 16.11.1995 >3500
pensionable salary on retirement 15000
Getting pension from PF office 2694/-( w.e.f 1.8.2016 onwards)
But my doubts is pensionable salary considered for preceding 60 months, it means
my pension salary upto 31.08.2014 6500/-
after 01.09.2014 15000/-
How much my pensionable salary will considered ?
a. pensionable salary =6500*60
or
b. pensionable salary = prior to 01.09.2014 6500*37 months = 240500
after 01.09.2014 15000*23 months = 345000
so, my pensionable salary will be as (240500+34500) =585500/60 = 9758/- instead of 390000*60 = 6500/-

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™