Understanding EPF: What's the Maximum Monthly Pension Amount Limit?

Dear HR Fraternity,

What is the EPF monthly pension amount limit? Please clarify.

Thanks,
Ramakrishnan G

At present, the maximum limit is capped at ₹7500, while the minimum is ₹1000, depending on the service period and the average EPS salary for the last 60 months.

Thank you.

Dear Mr. Abbas,

What do you mean by PF Pension? Are you referring to EPS Pension?

Dear Srinath Sairam,

As EPS is provided by EPFO, it is usually referred to as PF pension. Hence, either use EPS (Employees' Pension Scheme) or PF pension, but not EPS pension.

Abbas. P. S

@abbasiti,

Number of years x EPS salary (presently capped at $15,000) / 70. Now, you can calculate as the maximum service span is calculated at 35 years in normal cases.

Dear All,

Is there any formula to calculate PF pension? Please help me understand how to calculate the pension amount.

Thanks,
Mahesh Jadhav

Dear All, Please check if the following working formula helps you in arriving at the pension amount. You need to change the number of years of service and assumed contributions.

Example with ceiling salary for EPS contribution:

Based on the information provided, you worked for 32 years and retired on 31st December 2015 (DOB 29.12.1957) (Employment from 31.12.1983 to 31.12.2015) and attained the age of 58 years.

Pensionable salary = average of the last 60 months ceiling salary as applicable.

In the last 16 months before retirement, this was 15,000 (1250 a month) and before that for 44 months, it was Rs. 6500 (541 P. M.).

So you have a pensionable monthly salary as follows:

[(16 x 1250 = 20000) + (44 x 541 = 23804) = 43804] / 60 = Rs. 730

Pensionable annual salary is approximately Rs. 8760 (12 times 730).

EPS Pension = 8760 x (32 + 2) / 70 = Rs. 4,255

The above calculation is based on the assumption that there was no loss of pay and full contribution for the last 60 months. It may vary if there was any deduction.

* 2 years of Bonus service are added after completing 20 years of service. Hence, you are eligible for 32 + 2 = 34 years of pensionable service.

Regards, Suresh