EPF Pension Calculation Update: How Does the New Ceiling Affect Your Pension?

In this thread, the calculation of EPF pension is given by Mr. Abbas in Excel format. In that, he has considered a maximum ceiling of Rs. 6500. Since September 2014, the ceiling is raised to Rs. 15000. My query is whether the calculation will change according to this new amendment, and can Mr. Abbas provide a new formula to calculate the pension in Excel format?

The formula for pension calculation remains the same. You have to enter the "Salary on Separation from Service," which is the average of the last 60 months. However, I shall insert the modified Excel sheet, which will automatically calculate the pensionable salary, provided that the salary w.e.f 01.09.2014 is Rs. 15,000 or above.

Regards,
Abbas. P. S

Thank you very much. May I suggest you remove the previous Excel sheet from this site so that it will not create confusion in the minds of the readers of this post.

Rajan

This is Balu, and thank you, Mr. Abbas, for the immediate reply. As directed by you, I am furnishing the details below.

My DOB is 4/6/1965. I joined service on 7/7/1986. I am taking VR from 30/4/2017. Salary before 1995 was 2500. Present salary is 15000.

Mr. Abbas, please calculate the pension as of now on getting relieved from service, or please give me the calculator.

Dear Balu,

If you are being relieved on 30.4.2017, your pension at the age of 58 will be 3487, and on 4.6.2017, it will be 2729. If you opt for a pension effective from 01.05.2017, it will be 2620. If you are getting relieved on VR, the optimal benefit will be to claim pension effective from 4.6.17.

Abbas.P.S

Example of EPS Pension Calculation for Those Who Joined Before 15.11.1995

• Date of Joining: 01/06/1985

• Salary as on 15/11/1995: Above Rs 2500 per month.

• Salary on Completion of 58 years as on 01/01/2018: Rs 15,000

• Past Service: 01/06/1985 to 15/11/1995 or 10 years

• Compensation for Past Service as per Table A is Rs 85

• But Retirement at age of 58 is on 01/06/2018, difference between 01/06/2017 and 15/11/1995 is 22 years. So it's 5.649 as per Table B.

• Past Service Benefit (Table A x B): Rs 85 x 5.649 = Rs 480.165

• Pensionable Service from 15/11/1995: 22 years

• Additional Weightage: 2 years

• Pensionable Salary (last 5 years): Rs 11,600.

• Pension Admissible: 11,600 x 24/70 = Rs 3977

• Total Pension: Rs 5142 + Rs 515 = Rs 4457

How Much EPS Pension Will You Get If You Joined After 15.11.1995

For those who joined after 15 Nov 1995, the formula for the calculation of pension is simple. The formula for the calculation of pension is:

EPS Pension = Average Salary x Number of Years Service / 70

Dear Abbas,

I am Balu from Coimbatore, sir. Can you provide clarification on the recent Supreme Court judgement on EPF?

Mr. Abbas has uploaded a useful link for pension calculation. I have tried to simplify that in the context of a recent Hon'ble Supreme Court judgment. Since the calculation methodology has been explained in detail above, I am leaving that part. It is a simple Excel file with no restrictions, so one can further upgrade it as per requirement.

Dear All,

Please provide us with the higher pension interest calculation Excel sheet as per the Supreme Court order dated 04.11.2022.