The PF accumulations will start with low investments at the begining and end with high amounts, provided no non refundable loan taken. If loan is applied the figures will again change.
Suppose a member has 5 lakh rupees in his account at the end of service. Let his average accumulation for the total service is Rs. 2 lakhs and Rs. 3 lakhs for the last 12 months. Out of the above two, whichever is less i.e Rs. 2 lakhs will be taken for calculation.
Out of the Rs. 2,00,000, for the first 50,000; EDLI is actual i.e 50,000 -(1)
For the balance 1,50,00, EDLI will be 40%; i.e 60,000 - (2)
(1)+(2) = 1,10,000.
But cieling for the above calculation is Rs. 1,00,000 -(A)
Let his salary as
i) Rs. 4000
ii) Rs. 5000
iii) Rs. 6500
iv) Rs. 8000
20 times of the salary will be -(B)
i) 80,000
ii) 1,00,000
iii) 1,30,000
iV) 1,60,000
As there is ceiling limit as 1,30,000 serial (iv) will be treated also as 1,30,000.
Hence whichever is high will be as
i) 1,00,000
ii) 1,00,000
iii) 1,30,000
iv) 1,30,000
According to the above 'Times of India' calculation it will be 50000+ (450000x40%)=50000+180000=2,30,000!
Abbas.P.S