Understanding EPS-95 Pension Calculation
There is no upper limit for the EPS-95 pension. For pension calculation, the service is divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The first is called past service, and the latter is pensionable service.
Past Service Calculation
Past service is divided into four slabs:
- Service up to 11 years
- 12 to 15 years
- 16 to 19 years
- 20 years & 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 applies to those who reached 58 years on 16.11.95. For those who reach 58 years after 16.11.95, the above compensation is multiplied by a factor stipulated in Table B, according to the difference between 16.11.95 and the date of completion of 58 years.
Pensionable Service Calculation
For pensionable service, the formula to calculate pension is: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into three groups:
1. Below Rs. 6500
2. Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500
3. Above Rs. 6500 & opted to contribute on actual salary
In the second category, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Additionally, if pensionable service is 20 years & above, a 2-year bonus will be given.
For details, please see the website:
http://epfindia.com <link updated to site home>
Example Calculation
- Date of Birth: 2.1.1961
- Date of Joining: 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 years 9 months (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 (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 = Rs. 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
I shall insert an Excel worksheet to calculate the pension. Enter Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and any break in service before and after 16.11.95 in the green color column. The results will appear in the yellow color column. The red color is for static information.
In case of any error or suggestion, please notify me.
Regards,
Abbas.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, Palakkad - 678 623.
Ph [Phone Number Removed For Privacy Reasons]