Calculation Of Pension Under EPF & Mis. Act-1995

Hi, can anybody help with "how can we calculate the pension under EPF & mis. Act-1995. Suppose a person, X, who is getting a salary of 10000 (Basic is Rs. 5500), has completed 9 years and 7 months in the company and would like to leave the company. My question is, is he entitled to the Pension fund or not?

Thanks,
Sudhir

I understand from the PF Act that if an employee completes 10 years of service, he is not eligible to withdraw the pension amount; rather, he may get a scheme certificate. If less than 10 years have been completed, he may withdraw the pension amount by ticking the option in form 10-C (Scheme certificate not required).

Hope this clarifies.

Regards,
S. ANAND SIVAKUMAR

Dear Sudhir,

As he has completed 9 years and 7 months, this is to be considered 10 years (a fraction of more than 6 months is considered as one year); hence, he is not entitled to pension fund withdrawal. He can only avail of a scheme certificate or pension after attaining the age of 50 years.

Regards,
Baba Naresh

He can avail pension at 50 years conditionally. He should not be in PF applicable service while claiming pension. For every year below 58 years, 4% will be deducted from the pension amount. However, to apply for a Scheme certificate, there is no age limit or service limit.

Abbas

Dear Bhanu Sabarewal,

I am writing to inquire about the general calculation of provident fund. The breakdown is as follows:

- PF: 12% (employee contribution)
- FPF: 8.33% (employer contribution) - will be restricted to Rs. 541/-, with the remaining portion added to PF (12%)
- EPF: 3.67% (employer contribution, which will be added to PF - 12%)

I hope this information clarifies your query.

Regards,
S. Anand Sivakumar