Understanding EPF Pension: What Can You Expect After 20 Years in the Private Sector?

Can you guide me about the pension? An EPF Enforcement Officer told me that if an employee serves 20 years in the private sector after 16.11.95, they will receive Rs. 3250 as a pension from the EPF department after reaching the age of 58 years.

I am awaiting your response.

Regards,
Pulkit30

Understanding the Employees' Provident Fund and Miscellaneous Provisions Act, 1952

Under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, "Miscellaneous Provisions" refer to the Employee Pension Scheme (EPS) and Employee Deposit Linked Insurance.

Contribution Details

- Employee's Share: 12% goes to the PF account (A/c No.1).
- Employer's Share: 12% (8.33% to EPS (A/c No.10) & 3.67% to PF (A/c No.1)).

Under EPS, a contribution of 8.33%, with a maximum of ₹541, goes to (A/c No.10). If you have contributed to the EPS account for a minimum of 10 years, you are eligible for a pension upon reaching the retirement age due to superannuation.

Pension Calculation Formula

Formula: (Pensionable Service x Pensionable Salary) / 70

Please review the information provided and let me know if you have any questions.

Thank you.

Please explain more about the formula: Pensionable Service, Pensionable Salary, and why 70 should be divided by 70.

As per the PF Act, the EPS contribution for pension is restricted to Rs. 6,500 per month. Hence, the contribution at 8.33% for Rs. 6,500 is Rs. 541 per month. Therefore, the pensionable salary is restricted to a maximum of Rs. 6,500 only since the contribution for EPS is limited to Rs. 6,500 per month.

Regards,
P. Nagarajan

Pensionable service is the contributory period after November 16, 1995. If pensionable service is 20 years or more, a 2-year bonus will be added. At the time of the introduction of EPS - 1995, the minimum service to get a 50% service pension was 33 years. In EPS, 33 years will be treated as 35 (including the above 2 years' bonus). To get 50%, the above 35 is to be divided by 70. That is how the above formula (divided by 70) is derived.

Regards,
Abbas.P.S

As mentioned above (in response to Mr. Rajesh), 20 years will be considered as 22 years (including a 2-year bonus). Currently, the ceiling salary for EPF is Rs. 6500. Therefore, the pension in this scenario would be calculated as 6500x22/70 = Rs. 2043 only. To receive Rs. 3250 (with a ceiling salary of Rs. 6500), the individual should have a pensionable service of 33 years.

Regards,
Abbas.P.S

Widow and Child Pension Calculation

What is the widow and child pension calculation if an employee dies without completing 2 years in EPS?

Thanks for sharing the information about EPS. I want some more clarification. Let's say I worked for 2 years in Company A without any PF No, then joined another Company B and received another PF No, and worked for 10 years, i.e., till the age of 35, and then did not have any connection with any company for PF deduction.

Now, questions:

1. What amount will I receive if I apply for PF withdrawal (Is that 24% of my basic + interest)?
2. Will I receive a pension after 58? If not, then how can I proceed?

Please help me. In our company, an employee has completed 58 years, but his service tenure is only 6 years. Is he eligible for a pension or not?

Thank you.

Pension Certificate Delay and Address Discrepancy

I need your valuable suggestion, Sir. One of my relatives who worked in Nasik for 20 years left that job on good terms. He has withdrawn his PF amount that was deducted during his tenure, but since he worked for more than 10 years, he is entitled to a pension after completing 58 years of age. However, he is yet to receive his Pension Certificate even after submitting his PF Form 10C and Form 19.

I believe that when he submitted his forms 10C and 19, he may have provided his address in Nasik, whereas he now resides in Hyderabad. This discrepancy in address information could be causing the delay in receiving the Pension Certificate.

Could you please inform me about the reason for the delay in issuing the PF certificate? If so, kindly suggest an alternative solution for obtaining the PF certificate.

I am eagerly awaiting your reply via email regarding this matter.

Regards,
JRK Prasad

Any idea about the upward revision of pension amounts? A meeting is supposed to have taken place regarding this.

Expert Committee on PF Pension Review

There is an expert committee constituted to review the PF pension. They have put forward several recommendations, viz.:

• Minimum pension of Rs. 1000/-
• Annual increment of 3%

All the other recommendations are not in favor of the PF members.

Regards,
Abbas.P.S