Need Help Finding a Simple Pension Calculator for EPF – Any Suggestions?

Hi All,

I need some guidance or some file, such as Xls or other, that can calculate the pension as per the latest rules. Can anybody help in this matter?

Thanks to all in anticipation.

Hemant Kansara

There is no upper limit for EPS-95 pension. For pension calculation, the service will be taken into two parts: service before 16.11.95 and service w.e.f 16.11.95. The first one is called past service, and the latter one is referred to as pensionable service.

Past Service Calculation

Past service is divided into four slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 & above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120, and 150, respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, and 170. This amount is for those who attain 58 years on 16.11.95. In the case of those who attain 58 years after 16.11.95, the above compensation will be multiplied by a factor stipulated in Table B, according to the difference between 16.11.95 and the date of completion of 58 years.

Pensionable Service Calculation

For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into three groups: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In the case of the second group, pensionable salary is Rs. 6500. In the other two cases, pensionable salary will be the average of the last twelve months. Additionally, if pensionable service is 20 years & above, a 2-year bonus will be given.

For details, please visit the website: http://epfindia.com <link updated to site home>

Example Calculation

- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 & above
- Salary on completion of 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 yrs 9 mos (approx) rounded to 9 years
- Compensation: Rs. 85
- Factor as per Table B (for less than 24 years, i.e., the difference between 16.11.95 & 1.1.2019): 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 & above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840

I shall insert an Excel worksheet to calculate pension. Enter Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and break in service before and after 16.11.95, if any, in the green color column. The results will appear in the yellow color column. The red color is for static information.

In case of any errors or suggestions, please notify me.

Regards,

ABBAS.P.S

Secretary,

ITI Employees' Association,

ITI Limited, PALAKKAD 678 623,

KERALA, INDIA.

Ph. [Phone Number Removed For Privacy Reasons]

Dear Abbas,

Good job done! I thank you for the efforts you put into helping our friends. This is very useful. I suggest that you hide and protect the calculation formula part in your Excel sheet and keep only the editable and final result view fields visible to the users.

Regards,
G. R. Bavarva

Dear Bavarava,

Thank you for the compliments and suggestions. Regarding your suggestion to hide the calculation part, my view is that if somebody goes through this and gets triggered by taking this as guidance, it will be helpful to them and society.

Abbas

I have completed 14 years of service, having joined on 03 July 1996. If I resign now, what will be my pension? The basic of my last drawn salary is Rs. 20k.

Thank you.

I have changed companies three times. Each of the three companies has its own PF trust. What will happen to the pension that I have accrued in those companies if I haven't transferred either the PF or the pension fund? Who will own the pension fund?

The pension fund will be with the concerned Offices of the Regional PF Commissioner. You may apply to the concerned PF offices separately through respective employers in Form 13 to transfer the pension details to the last location.

Regards,
Abbas P.S.

EPFO Pension Calculation Justification

Division by 70 is not my proposal; it is the formula stipulated by the EPFO. At the time of the introduction of the PF pension (16.11.1995), for 33 years of service, the equivalent service pension is 50%. In the PF pension scheme, 2 years will be added as a bonus for those who have completed 20 years of service. Accordingly, 33 years will be treated as 33+2 = 35. To get 50%, 35 is to be divided by 70. This is said to be the justification for dividing by 70.

Regards,
Abbas.P.S

Ceiling Limit on Salary

The ceiling limit on salary is Rs. 6500. I joined the P.F. on 25.08.2004. What is the amount I will receive as a pension in March 2013 (Present age 47 years)?

= Rs. 6500 x 9/70 = Rs. 836 per month.
= Rs. 836 is a very small amount.

Regards,
Prasad

Dear Abbas, Thanks for the XLS sheet for pension calculation. Is the 4% reduction each year before attaining the age of 58 later restored to the pension after reaching the age of 58? If yes, does the individual have to make any application to the department?

Thanks,
RAVI GURJAR

[QUOTE=Ravi Gurjar;2197042] Dear Abbas, Thanks for the XLS sheet for pension calculation. Is a 4% reduction each year before attaining the age of 58 later restored to the pension after reaching the age of 58? If yes, does the individual need to make any application to the department? Thanks, RAVI GURJAR No, any reductions in pension will continue for the lifetime of the member and subsequently to the spouse and children. The reduced pension will not be reinstated to the original pensionable amount. Abbas P.S.

To be eligible for a pension, there should be a minimum service of 10 years. If the service period is below the required minimum, a one-time withdrawal benefit is applicable.

Abbas.P.S

I have noticed your queries just now. In any circumstance, PF pension cannot be denied if the member has 10 years of service (9 years and 6 months will be rounded up to 10 years) until completion of 58 years. If the service is below 10 years, a one-time withdrawal benefit can be availed.

Regards,
Abbas. P.S

Dear Sir,

I have been an employee at the National Heart Institute since August 1981. I am planning to retire in July 2015. My current basic pay is $12,700, DA is $13,589, and the total gross salary is $34,561.

Could you please let me know how much pension I will receive after retirement?

Thank you.

Best regards,
Shyambali Yadav

Dear Shyambali Yadav,

Your Past Service Benefit for 14 years (till 16.11.95) - 105. Multiplying factor as per Table B - 4.485. Pension for Past Service - 105 x 4.485 = 471 - (1).

Pension w.e.f 16.11.1995 = pensionable service x pensionable salary / 70 = 19.63 x 7916.67 / 70 = 2220 - (2).

Total Pension, (1) + (2) = 471 + 2220 = 2691.

Abbas.P.S

This is indeed great work, Abbas. I request you to please share Table B as well if you have it, as the provided link is not working. This will be very helpful. Thanks.

Dear Harpreet Walia,

Table B can be downloaded from EPFO. However, I shall reproduce it as follows:

[TABLE B
(See Paragraphs 12 and 14)
FACTOR FOR COMPUTATION OF PAST SERVICE BENEFIT UNDER THE CEASED FAMILY PENSION SCHEME FOR EXISTING MEMBERS ON EXIT FROM THE EMPLOYMENT
YEARS FACTOR
Less than 1 1.039
Less than 2 1.122
Less than 3 1.212
Less than 4 1.309
Less than 5 1.413
Less than 6 1.526
Less than 7 1.649
Less than 8 1.781
Less than 9 1.923
Less than 10 2.077
Less than 11 2.243
Less than 12 2.423
Less than 13 2.616
Less than 14 2.826
Less than 15 3.052
Less than 16 3.296
Less than 17 3.560
Less than 18 3.845
Less than 19 4.152
Less than 20 4.485
Less than 21 4.843
Less than 22 5.231
Less than 23 5.649
Less than 24 6.101
Less than 25 6.589
Less than 26 7.117
Less than 27 7.686
Less than 28 8.301
Less than 29 8.965
Less than 30 9.682
Less than 31 10.457
Less than 32 11.294
Less than 33 12.197
Less than 34 13.173]

51. Subs. by G.S.R. 438(E), dated the 10th June 2008

Abbas.P.S

Hi, can you provide a calculation for EPS after the recent amendment? My DOB is 01.01.1963, and my date of joining is 28.08.1984. My basic salary as of 1995 was over 2500, and today it is more than 15000. If possible, could you create an Excel sheet for this information?

Dear Mr. B.K. Roy,

Your past service benefit is 85 x 7.117 = 605. (1)

The pension for pensionable service is 15000 x 27.1224 / 70 = 5812. (2)

The total pension is the sum of (1) and (2), which equals 6417.

Abbas.P.S

Pension Calculation Inquiry

I have retired from RINL, Vizag Steel on 30-06-2012 as AGM (Personnel). I joined VSP on 08-06-1977. My contributions to EPFS started from 01-11-1977. I had continuously worked without any breaks in my service until my retirement. Now, I would like to know the pension that I should receive after my retirement, considering my past service before 1995. Please send the calculation sheet as well. If you need further information, please let me know, and I will provide it.

Thank you,

Regards,
M Gurunadha Rao
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]

I trust you are doing well. I want to know if a person who has withdrawn an amount of PF accumulated and pension fund from their previous service due to unawareness of the rules can still be eligible for continuous service. After leaving the initial job, the person joined a new organization but has not completed more than 5 years of service there. At the time of leaving the initial job, the individual had about 5 years of service. Is it possible for them to accumulate both the services, old and new, and be eligible for the pension scheme?

I would appreciate it if you could let me know. If the answer is yes, please share the process for how the person should proceed in this regard.

Regards, AG

Monthly pension is calculated using the formula: Monthly pension = (Pensionable salary * Pensionable service) / 70.

The division by 70 is determined based on specific calculations related to factors such as retirement age, contribution years, and benefit payout structures. The number 70 is commonly used in pension calculations to determine the monthly pension amount.

If you have any further questions or need clarification on this calculation, please feel free to ask.

Ashutosh Srivastava

Dear Abbas,

This is a nice format. Please try to introduce the early pension formula (after 50 years to 57 years at any time) and the date of separation before retirement.

Thanks,
Vidyadhar Bhat

Sir, I joined the service and was on probation on 28.08.1977. My date of birth is 28.11.1958, and my pay as of November 1995 is Rs. 8,232 (Basic + DA), with the basic being Rs. 3,100. Currently, my basic pay is Rs. 32,400. I am retiring on 30-11-2016. How much pension can I expect? Is it Rs. 2,842 maximum?

Dear Abbas,

Good job! Please attach an Excel sheet for pension starting at the age of 60 years in place of 58 years.

Thanks.

Dear friends,

If we didn't opt for a pension at 58 years, then the pension at 59 years will be the pensionable amount multiplied by 1.04, and for 60 years, it is the pensionable amount multiplied by 1.0816. For example, if the pensionable amount is Rs. 1000/- at 58, the pension for 59 and 60 years will be Rs. 1040 and Rs. 1082 respectively.

Abbas.P.S

Dear Abbas Sir,

Please provide calculations for the following details:

- Date of Birth (DOB): 14-09-54
- Date of Joining (DOJ): 01-08-1978
- Date of Leaving (DOL): 31-05-2003
- Pension opted for: 01-10-2004 after completion of 50 years
- Salary in October 1995: $2500
- Salary upon leaving in May 2003: $6500

Thank you,
Vidyadhar Bhat

Dear Vidyadhar Bhat,

Your past service benefit (till 15.11.95) = 135 x 3.56 = 481 - (1)

Pensionable service benefit (16.11.95 to 31.5.2003) = 7.54 x 6500 / 70 = 700 - (2)

Total pension at 58 years (1) + (2) 481 + 700 = 1181

Pension at 50 years = 1181 x 0.7214 = 852

As per the new amendment, those who have a total service of 20 years in EPS will be granted a bonus of 2 years. Accordingly, 481 + 700 will become 481 + 886 = 1367 and at 50 years, the pension will be 986.

Abbas.P.S

Your EPF Calculator is perfect. From September 1, 2014, the wage limit is Rs. 15,000.00 per month. Please update the EPF calculator accordingly.

I liked this post on calculation awareness drive. I request you to please update the calculation considering a pensionable salary of 15000/- wef Oct 2014 and the status of enhancement of pensionable salary to the actual salary as per the recent notification dated 23rd March 2017.

Actually, the statutory limit of pension contribution has been enhanced from Rs. 6500 to Rs. 15000 as of 1st September 2014. Therefore, employers are now contributing pension based on Rs. 15000 at 8.33%, which amounts to Rs. 1250. Can we consider Rs. 15000 instead of Rs. 6500 when calculating the pension amount?

Dear Mr. Ravindra,

Criteria for Pensionable Salary

The criteria for pensionable salary are as follows:

Average monthly pay of the contributory period of service in the span of 60 months preceding the date of exit from the membership of the Employees' Pension Fund.

The revised salary of Rs. 15,000/- was implemented with effect from 1st September 2014. Therefore, prior to 31st July 2019, we need to calculate the pensionable salary on a pro-rata basis. However, after 31st August 2019 (upon completion of 60 months of continuous service at Rs. 15,000/pm), we can consider Rs. 15,000/-.

For example, if a person retired on 31st May 2017 (within the current period), the pensionable salary (prior to leaving the job) would be calculated on a pro-rata basis (27 months @ 6,500 and 33 months (from September 2014 to May 2017) @ 15,000). (27*6,500 + 33*15,000)/60 = 11,175/-.

As the employee's salary was not consistently Rs. 15,000/- during the previous 60 months, the average salary amounts to 11,175/-.

I hope this clarifies the point.

Mr. Abbas can provide further insight on this matter.

Dear Abbas,

I am providing below the figures of my pension received by me:

Pension Details

Date of Birth: 11/7/1944; Date of Joining: 1/1/1982; Date of Retirement: 11/07/2002 with a 6-month break in the service after 1995. My initial pension calculation was Past service 85*1.858 = 157 Current Service 6500*6/70 = 552; totaling 715 ROC-752 pension received 643.

Pension Adjustments Over the Years

In 2014, the minimum pension was 1000; the calculation was past 157 + current 552 + adjustment 285 = 1000 - ROC 72 = Pension received 928.

In 2015, after the Supreme Court ordered to add 2 years weight-age, the calculation was past 157 + current 743 + adjustment 100 = 1000 - ROC 90 = Pension received 910. I have received the payment of all pension totaling 1,58,319 till now.

Recent Supreme Court Order

Recently, the Supreme Court has ordered to do away with the ceiling of 5000 and 6500 and pay the pension of the full contribution paid by the employer. Fortunately, I have the month-wise details. I have worked out the average pensionable salary. It is 12000 for 12m average, 11,102 for 36m average, and 10,461 for 60m average. The calculated pension works out to be 1528 - 153 (ROC) = 1375 (for 12m), 1425 - 143 = 1282 for 36m, and 1353 - 135 = 1218 for 60m. This looks to be lucrative and opt for it. (The scheme is optional for the member, i.e., he can opt for it and get revised pension or leave with the same pension as he gets now). However, the member has to return the management part of the contribution (paid to me in Sept 2009) received with the settlement of PF Contribution. The amount is 52319; it works out to be 105684 with simple interest at 12% and 137092 with 12% compound interest.

Decision Dilemma

Now my question is, should I opt for it or not? Will it be lucrative to get increased pension considering the interest otherwise received on 1,37,000, which is required to be returned? Secondly, they will consider only after repayment of our part; it may take a little longer time for settlement and the consent and form 3A requirement from the employer. The employer may not do it willingly as it requires the 25 years back data.

I need your guidance. Please contact me via email or my mobile number [Phone Number Removed For Privacy-Reasons].

Thanking you.

Dear Abbas, I am providing below the figures of my pension received by me:

Pension Details

Date of Birth: 11/7/1944; Date of Joining: 1/1/1982; Date of Retirement: 11/07/2002 with a 6-month break in the service after 1995. My initial pension calculation was Past service 85*1.858=157, Current Service 6500*6/70=552; totaling 715 ROC-752 pension received 643. In 2014, the minimum pension was 1000; the calculation was past 157 + current 552 + adjustment 285 = 1000 - ROC 72 = Pension received 928. In 2015, after the Supreme Court order to add 2 years weight-age, the calculation was past 157 + current 743 + adjustment 100 = 1000 - ROC 90 = Pension received 910. I have received the payment of all pension totaling 1,58,319 till now.

Supreme Court Order Impact

Recently, the Supreme Court has given the order to do away with the ceiling of 5000 and 6500 and pay the pension of the full contribution paid by the employer. Fortunately, I have the month-wise details. I have worked out the average pensionable salary. It is 12000 for 12 months average, 11,102 for 36 months average, and 10461 for 60 months average. The calculated pension works out to be 1528 - 153(ROC) = 1375 (for 12 months), 1425 - 143 = 1282 for 36 months, and 1353 - 135 = 1218 for 60 months. This looks to be lucrative, and I am opting for it. (The scheme is optional for the member, i.e., he can opt for it and get revised pension or leave with the same pension as he gets now). However, the member has to return the management part of the contribution (paid to me in Sept 2009) received with the settlement of PF Contribution. The amount is 52319, it works out to be 105684 with simple interest at 12% and 137092 with 12% compound interest.

Decision Dilemma

Now my question is, should I opt for it or not? Will it be lucrative to get increased pension considering the interest otherwise received on 1,37,000, which is required to be returned? Secondly, they will only consider after the repayment of our part. It may take a little longer time for settlement and the consent and form 3A requirement from the employer. The employer may not do it willingly as it requires the 25 years back data.

I need your guidance. Please contact me via email or my mobile number [Phone Number Removed For Privacy-Reasons].

Thanking you,

D M Shah

Dear D M Shah,

Option to contribute to the pension fund on the full salary

1) Your PF remittance made by the employer should be based on the actual salary.

2) Your PF handling should be done by EPFO (not by exempted Trusts run by the respective Organizations).

If the above conditions are satisfactory, you may remit the difference (8.33% of the employer's share to the pension fund, the remaining 3.67% you can keep) with the consent of RPFC and the employer. The applicable interest is not a flat 12% but will vary from year to year, which I shall incorporate separately. For those who become pensioners on or before 31.08.2014, the pensionable salary will be the average of the last twelve months.

If EPFO gives consent to contribute on the full salary, it will not only provide more monetary benefits but also better social security aspects.

Abbas.P.S

Thank you, Abbas, for your reply #43. How do I obtain consent from the PF office? What is the procedure? When contacting the PF office, they seem to be unaware of the process and request the following:

1) Obtain the calculation from your employer. I understand that Form 3A needs to be filled out for each year. In my case, it would be from 1995-96 to 2002-2003. As informed, I have copies of all the old Form 3As. Can I directly submit these to the PF office? Please provide guidance on the procedure. (In the event that the company is closed, you cannot apply – this response is difficult to accept).

2) The PF office will calculate the difference of the refundable pension fund with 12% interest – this is also challenging to accept as the PF office has provided us with the two years' weightage benefit without any interest.

3) Further pension calculations will only be done after you refund the excess amount paid.

4) There is no reasonable time limit specified for this process. Please advise.

Regards, DM Shah.

Thank you for the Excel sheet; it is very useful.

I retired at the age of 60 in 2012. However, for some reasons, I have not yet applied for my pension. It has been almost 6 years post-retirement and 8 years since I turned 58.

Would there be any issues if I were to apply for my pension now? If yes, what are they and how can I overcome them, please advise.

Regards,
Satish

Dear Mr. Satish,

As you are applying for pension now, EPFO may process the pension from the date of completion of age 60 years as the pensionable amount multiplied by 1.0816. If so, you will lose 2 years of arrears (effective from the date of completion of 58 years).

Kindly mention the effective date as the date of completion of 58 years and attach a copy of Form 10 D when submitting it to EPFO.

Abbas.P.S

Dear Mr. Ashutosh,

The figure 135 is considered on the basis of Past Service Benefit (for service up to 16th Nov. 1995) and Table A (which describes the Pension amount for the Past Service).

Table A for service before 16/11/1995:

Years of Past Service | Salary Up to ₹2500 | Salary above ₹2500
- Up to 11 years | 80 | 85
- 11-15 years | 95 | 105
- 15-20 years | 120 | 135
- Above 20 years | 150 | 170

In the case of Mr. Vidyadhar, Date of Joining = 01/08/1978, hence as of 16th Nov 1995, the total service period is 15 years, falling under the 15-20 years slab for which the pension is 135.

Table B for pension enhancement:

There is also Table B wherein a factor is allotted for enhancing the pension. If any employee retires or leaves the service after 16/11/1995, his pension amount (as given above) will be multiplied by a factor (as given in Table B) for every completed year in relation to service after 16th Nov 1995 to DOL/retirement.

However, in my opinion, the factor should be 1.649 (less than 7 years, 16.11.1995 to 31.05.2003), whereas Mr. Abbas has considered 3.56 (which is applicable for service less than 17 years).

Though the calculation of Mr. Abbas (in connection with PF Pension) is always commendable, I would like Mr. Abbas to check once again and correct me if I am wrong.

Dear Sir/Madam,

As per the new Supreme Court verdict in April 2019, how should the new pension be calculated for those who retired before December 2012?

Here are the details for calculation:
- Date of Birth: 4th November 1954
- Date of Joining: 1st January 1977
- Retirement Date: 4th November 2012
- Salary as of 16th November 1995: $30,000
- Retirement Salary: $75,000

Please let me know if any additional information is required.

Thank you.

Please guide me. I have received a notice from the EPF department about EPF Calculation. Previously, I was calculating EPF as Basic Salary*employer Contribution + Employees contribution. Now, the EPF Inspector is saying to me that I need to consider Basic + special conveyance + special allowance + education allowance for the calculation. After totaling these, I have to calculate as per the instructions given by the inspector. I am having trouble understanding this. Can you please explain to me how to do the proper calculation?