Hi All,
Can anyone share with me the pension calculation as per EPS Act and the calculation before 1995?
Example:
Employee name: ABC
Last basic + DA: Rs. 15,000
Date of birth: 1st October 1958
Date of joining (PF, Pension service): 1st January 1991
Date of leaving: 1st October 2016
What is the pension amount?
Regards,
Akshay
From India, Surat
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1Can anyone share with me the pension calculation as per EPS Act and the calculation before 1995?
Example:
Employee name: ABC
Last basic + DA: Rs. 15,000
Date of birth: 1st October 1958
Date of joining (PF, Pension service): 1st January 1991
Date of leaving: 1st October 2016
What is the pension amount?
Regards,
Akshay
From India, Surat
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Dear Akshay, Upto Nov’95: Rs. 412.00 From Then till Oct’16: Rs. 4714.00 Rs. 4714+412 Total Pension Approx. Rs. 5126.00
From India, Delhi
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From India, Delhi
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Thanks Mr. Umesh Chaudhry for your quick reply. I want to know what is calculation of Rs. 412 (before 1995) ? Regards Akshay 9825801383 akshayhrd@gmail.com
From India, Surat
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From India, Surat
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As per Table for period up to 1995 if the salary is above Rs. 2500 the value is Rs. 85. Factor for calculating past service benefit is 4.843. The multiplication of both is Rs.412.
From India, Delhi
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From India, Delhi
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Pension Calculation Overview
Pension is calculated as the pensionable salary multiplied by pensionable service divided by 70. Understanding Pensionable Service
Pensionable Service refers to the service period after November 1995. This means you will have a service of 21 years till October 2016. Defining Pensionable Salary
Pensionable salary is the salary qualified for contribution to the Pension Fund. This was just Rs 6500 till September 2014. For an employee who has part of their service during the period when the contribution was made on Rs 6500, proportionate pension will be admissible. For the rest of the period only (i.e., from October 2014), Rs 15000 will be taken as the pensionable salary. Past Service Benefit
For the period prior to November 1995, the past service benefit will be Rs 412, provided the salary at that time was more than Rs 2500. Therefore, roughly the following may be the pension calculation:
For the service prior to 1995: Rs 412
For service between 1995 and 2014: (6500 x 19 years / 70) = Rs 1764
For the remaining period: (15000 x 2 years / 70) = Rs 429
Total: Rs 2605.
Please correct me if I am wrong. I would also invite Mr. Abbas to share some inputs on this.
Regards, Madhu.T.K
From India, Kannur
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Pension is calculated as the pensionable salary multiplied by pensionable service divided by 70. Understanding Pensionable Service
Pensionable Service refers to the service period after November 1995. This means you will have a service of 21 years till October 2016. Defining Pensionable Salary
Pensionable salary is the salary qualified for contribution to the Pension Fund. This was just Rs 6500 till September 2014. For an employee who has part of their service during the period when the contribution was made on Rs 6500, proportionate pension will be admissible. For the rest of the period only (i.e., from October 2014), Rs 15000 will be taken as the pensionable salary. Past Service Benefit
For the period prior to November 1995, the past service benefit will be Rs 412, provided the salary at that time was more than Rs 2500. Therefore, roughly the following may be the pension calculation:
For the service prior to 1995: Rs 412
For service between 1995 and 2014: (6500 x 19 years / 70) = Rs 1764
For the remaining period: (15000 x 2 years / 70) = Rs 429
Total: Rs 2605.
Please correct me if I am wrong. I would also invite Mr. Abbas to share some inputs on this.
Regards, Madhu.T.K
From India, Kannur
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Effective from 01.09.2014, the pensionable salary is the average of the last 60 months. This is split into two periods: up to 31.08.2014 and from 01.09.2014 onwards. The average salary of the 60 months preceding 31.08.2014 is 6500/-. Your calculation method for this period is correct. However, the average salary until 30.09.2016 is calculated as follows: (25x15000 + 35x6500)/60 = (375000 + 227500)/60 = 602500/60 = 10042/-. Therefore, the approximate calculation would be 10042 x 2/70 = 287/-.
The total pension is the sum of (1) and (2), resulting in 2051 for 21 years. For 20 years of service and above, 2 additional years will be added as a bonus. Hence, the total pension becomes 2051 x 23/21 = 2246. Adding the past service benefit of 412, the final figure will be 2246 + 412 = 2658/-.
This is an approximate calculation, but it demonstrates the method of calculation accepted by EPFO.
Regards, Abbas P.S.
From India, Bangalore
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The total pension is the sum of (1) and (2), resulting in 2051 for 21 years. For 20 years of service and above, 2 additional years will be added as a bonus. Hence, the total pension becomes 2051 x 23/21 = 2246. Adding the past service benefit of 412, the final figure will be 2246 + 412 = 2658/-.
This is an approximate calculation, but it demonstrates the method of calculation accepted by EPFO.
Regards, Abbas P.S.
From India, Bangalore
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1. My Date of Birth is 28-01-1958.
2. Date of Joining at Steel Industrials Kerala Ltd (Govt of Kerala undertaking), Beypore Kozhikkod on 14-11-1981.
3. Later on 5-4-1985, transferred to Autokast Ltd. Cherthala (A subsidiary of Steel Industrials Kerala Ltd) and joined Autokast Ltd on the same day.
4. After attaining 58 years, retired from services on 31-01-2016. As per EPO:
5. Date of Joining is 5-4-1985 and past service up to 15-11-95 is 10 years 7 months and 11 days.
6. Date of Exit 27-01-2016.
7. Past service up to 15-11-1995 10 years, 7 months, 12 days.
8. Actual service after 15-11-1995 is 20 years, 2 months, 12 days.
9. Weightage service 2.
10. Eligible Service 31 years.
11. NCP Days 0.
12. Wages on 15-11-1995 - Rs.2400/-.
13. Wages on Exit - Rs.15000/-.
14. Pensionable salary - Rs. 8767/- ((6500*44) + (15000*16))/60 (Average of last 60 months pensionable salary for the first 44 months @Rs.6500/- and from Oct 2014 @Rs.15000/ for remaining 16 months).
15. Pension Amount Rs.2494/-.
According to me:
16. My Date of Joining is 14-11-1981.
17. Date of Exit is 27-01-2016.
18. Past service up to 15-11-1995 is 14 years, 0 months, and 2 days, say 14 years.
19. Eligible service is 34 years (14+20).
20. I would like to know if this calculation is correct. If not, what should be my pension?
Those who know, please help.
From India, Valparai
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2. Date of Joining at Steel Industrials Kerala Ltd (Govt of Kerala undertaking), Beypore Kozhikkod on 14-11-1981.
3. Later on 5-4-1985, transferred to Autokast Ltd. Cherthala (A subsidiary of Steel Industrials Kerala Ltd) and joined Autokast Ltd on the same day.
4. After attaining 58 years, retired from services on 31-01-2016. As per EPO:
5. Date of Joining is 5-4-1985 and past service up to 15-11-95 is 10 years 7 months and 11 days.
6. Date of Exit 27-01-2016.
7. Past service up to 15-11-1995 10 years, 7 months, 12 days.
8. Actual service after 15-11-1995 is 20 years, 2 months, 12 days.
9. Weightage service 2.
10. Eligible Service 31 years.
11. NCP Days 0.
12. Wages on 15-11-1995 - Rs.2400/-.
13. Wages on Exit - Rs.15000/-.
14. Pensionable salary - Rs. 8767/- ((6500*44) + (15000*16))/60 (Average of last 60 months pensionable salary for the first 44 months @Rs.6500/- and from Oct 2014 @Rs.15000/ for remaining 16 months).
15. Pension Amount Rs.2494/-.
According to me:
16. My Date of Joining is 14-11-1981.
17. Date of Exit is 27-01-2016.
18. Past service up to 15-11-1995 is 14 years, 0 months, and 2 days, say 14 years.
19. Eligible service is 34 years (14+20).
20. I would like to know if this calculation is correct. If not, what should be my pension?
Those who know, please help.
From India, Valparai
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PENSION CALCULATION.xls
PENSION CALCULATION.pdf
EPF PENSION CALCULATION.zip