How Do I Calculate My Pension After 32 Years of Service at Philips?

My name is Sanjay Patki. I am working at Philips Electronics India Ltd. in Vadodara. I completed 58 years of service in July 2014, and I am still working at Philips until my 60th year, which will be completed in July 2016.

Pension Claim Inquiry

As per government rules on pension after 58 years, I would like to claim my pension. My total service is 32 years, and I have been a member of the PF since 01.07.1982. My date of birth is 10.07.1956. In the Pension Scheme of 1995, I have completed 19 years, and before that scheme, my service was 13 years. My basic salary is Rs. 12,550 at present. Kindly confirm how much monthly pension I will receive.

Regards,
Sanjay Patki

You may receive ₹5892 per month. It will be calculated like this: the last EPF-contributed basic salary multiplied by total years of service plus 1, divided by 70. Please check with your regional PF office or their customer care center for clear details.

Thanks.

Dear Sir,

Please recalculate the pension using the following details:
- Date of birth: 10.07.1956
- PF joining date: January 1977
- Basic salary: $10,510 per month
- Total past service: 17 years
- Pensionable service: 19 years and 4 months

Please revert at the earliest.

Sanjay Patki

I would like to present the calculation to the PF representative. Please proceed with the calculation.

Dear Sir,

I have received a pension amount of 2266/p.m. I am not happy with this amount. I am providing you with some details, please help me calculate the pension.

My basic salary is 10510/month.
Date of Birth: 10.07.1956
Pensionable salary: 19 years
Past service: 18 years
Total service is 38 years.
I joined the PF in the year 1978.

With Regards,
Sanjay Patki

Dear Sir,

I have received a pension amount of 2266 per month. Sir, please, I am not happy with this amount. I am providing you with some details, so please help me calculate the pension.

My basic salary is 10510 per month. My date of birth is 10.07.1956. Pensionable salary for 19 years, with past service of 18 years, making a total service of 38 years. I joined the PF in the year 1978.

With Regards,
Sanjay Patki

Dear Stephen, I cannot follow your calculation of PF. You have taken the full service for pension calculation. Actually, his pensionable service is 19 years, i.e., from Nov 1995, the date on which the pension scheme was introduced, to July 2014, the date of attaining 58 years of age.

Again, the pension is not calculated on the entire salary that he was drawing at the time of retirement or the average of the same for the last one year as you have taken, but it is restricted to Rs. 6500 wherever the PF qualifying salary is more than 6500. (Since Sept 2014, this has become Rs. 15000) Therefore, the pensionable salary should be taken as Rs. 6500 and not Rs. 12550. The pension will be Rs. 1764. Since he had a past service of 13 years, he will get a past service benefit calculated as per a separate schedule for this. This will be around Rs. 400.

Regards, Madhu.T.K

Clarification on Pensionable Salary Calculation

I do not understand the above clarification about the pension. In July 2014, the ceiling limit for pensionable salary was Rs. 6500, and from 1st September 2014, the ceiling was Rs. 15000. I think that the pensionable salary will be calculated as follows: for July and August, the base will be Rs. 6500, and from 1st September, the pensionable salary will be Rs. 10510 as per the average of the last six months' salary.

1. For July and August: Rs. 6500 x 2/70 = Rs. 185
2. From 1st September onwards: Rs. 10510 x 17/70 = Rs. 2552

The total pensionable salary will be Rs. 2737/month plus past service salary as per calculation. Please confirm.

With Best Regards,
Sanjay Patki