Dear All,
I have a small doubt in PF Pension calculation formula. Please explain the doubt I have. The formula is Average salary X No. of years of service / 70.
"Why is 70 taken for dividing?"
Regards,
Rajesh S
From India, Hyderabad
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I have a small doubt in PF Pension calculation formula. Please explain the doubt I have. The formula is Average salary X No. of years of service / 70.
"Why is 70 taken for dividing?"
Regards,
Rajesh S
From India, Hyderabad
Acknowledge(0)Amend(0)
70 is nothing but a mathematical figure only. The labor department ensures that the employee can work a maximum of 35 years, and the pension would be 50% of the last wages. So, the 35/70 formula is applied. There are many more intricacies within the scheme, but 70 is just a number to determine the percentile of the payable amount.
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