Understanding the EPS-95 Pension Calculation
There is no upper limit for the EPS-95 pension. For pension calculation, the service will be taken into two parts: service before 16.11.95 and service w.e.f 16.11.95. The first one is called past service, and the latter one 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 & above
If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120, and 150 respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, and 170. This amount is for those who attain 58 years on 16.11.95. In the case of those attaining 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.
Pensionable Service Calculation
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into three categories:
1. Below Rs. 6500
2. Rs. 6500 & above, but contribution on statutory ceiling of Rs. 6500
3. Above Rs. 6500 & opted to contribute on actual salary
In the case of 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. Also, if pensionable service is 20 years & above, a 2-year bonus will be given.
For details, please see the website
http://epfindia.com.
Example Calculation
- 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
I shall insert an Excel worksheet to calculate pension. Enter Date of Birth, Date of Join, 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 break in service before and after 16.11.95, if any, in the green color column. The results will appear in yellow color. Red color is used for static information.
In case of any error or suggestion, please notice me.
Regards,
ABBAS.P.S
Secretary, ITI Employees' Association, ITI Limited, Palakkad - 678 623
Ph [Phone Number Removed For Privacy Reasons]