Dear all, Can anyone know how pension calculation is done when we finish off our services ? Regards, R.Rathina Kumar
From India, Madras
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5From India, Madras
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Dear Rathin,
You have not mentioned whether you are working in a pensionable job in any government department or a PSU. I don't think any other public limited corporate house is providing a pension to its employees.
You may also need to clarify whether you are seeking information on pension calculation for yourself or for general knowledge. If it is for yourself, please specify the number of years of service you have completed or will complete by the date of your retirement.
If you are handling pension cases in a government office or PSU, a casual approach to pension calculation may not be sufficient. In that case, it would be advisable to purchase a book titled "Swamy's Pension Rules Made Easy" in addition to the main book on Pension Rules called "Swamy's Pension Compilation on CCS (Pension) Rules." These books should be available at any bookstore that sells government publications, not a general bookstore.
Regards,
R.Rathina Kumar
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Dear all,
Can anyone explain how pension calculations are performed upon completing our services?
Regards,
R.Rathina Kumar
From India, Delhi
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You have not mentioned whether you are working in a pensionable job in any government department or a PSU. I don't think any other public limited corporate house is providing a pension to its employees.
You may also need to clarify whether you are seeking information on pension calculation for yourself or for general knowledge. If it is for yourself, please specify the number of years of service you have completed or will complete by the date of your retirement.
If you are handling pension cases in a government office or PSU, a casual approach to pension calculation may not be sufficient. In that case, it would be advisable to purchase a book titled "Swamy's Pension Rules Made Easy" in addition to the main book on Pension Rules called "Swamy's Pension Compilation on CCS (Pension) Rules." These books should be available at any bookstore that sells government publications, not a general bookstore.
Regards,
R.Rathina Kumar
---
Dear all,
Can anyone explain how pension calculations are performed upon completing our services?
Regards,
R.Rathina Kumar
From India, Delhi
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I have been working in a Pvt Ltd company. One of my key deliverables is to conduct an induction training program for the new incumbents. Trainees are asking me about pension calculations and how much they would receive in the future based on the contributions we normally remit to the Regional PF office (Employer PF - 3.67% + Pension 8.33%).
Now, I need clarification on how the pension is calculated at the end of our services (based on the highlighted contributions). I require only the formula and not the eligibility. Thanks in advance.
From India, Madras
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Now, I need clarification on how the pension is calculated at the end of our services (based on the highlighted contributions). I require only the formula and not the eligibility. Thanks in advance.
From India, Madras
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Induction training should not be conducted without adequate preparation. It cannot be a case of a single question of how to calculate pension. You may have to face several such questions on pension or employee provident topics from the participants during training. So, it is advisable to go through the Employees Provident Fund Act and Rules properly before replying to questions on the topic of pension. Such books are readily available at any bookshop dealing with Government publications in major cities.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of Management & Educational Consultants
New Delhi
rathinakumarhr;1168393:
I have been working in a Pvt Ltd company, and one of my key deliverables is to conduct induction training programs for new incumbents. Trainees are asking me about pension calculations and how much they would receive in the future based on the contributions we normally remit to the Regional PF office (Employer PF - 3.67% + Pension 8.33%). Now, I need clarification on how the pension is calculated at the end of our services (based on the highlighted contribution). I require only the formula and not the eligibility. Thanks in advance.
From India, Delhi
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PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of Management & Educational Consultants
New Delhi
rathinakumarhr;1168393:
I have been working in a Pvt Ltd company, and one of my key deliverables is to conduct induction training programs for new incumbents. Trainees are asking me about pension calculations and how much they would receive in the future based on the contributions we normally remit to the Regional PF office (Employer PF - 3.67% + Pension 8.33%). Now, I need clarification on how the pension is calculated at the end of our services (based on the highlighted contribution). I require only the formula and not the eligibility. Thanks in advance.
From India, Delhi
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Dear pls find the attached Formula Sheet for pension calculation that will help you Thaks Jitendra Tomar 9313353831
From India, Ghaziabad
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From India, Ghaziabad
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There is no upper limit for EPS-95 pension. For pension calculation, the service will be taken into 2 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 as pensionable service. Past service is divided into 4 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, & 150 respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, & 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.
For pensionable service, there is a formula to calculate the pension. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory ceiling of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In the case of the 2nd category, pensionable salary is Rs. 6500. In the other two cases, pensionable salary will be the average of the last twelve months. Also, if pensionable service is 20 years & above, a 2-year bonus will be given.
For details, please see the website:
EPFO <link updated to site home>
One example I shall quote:
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 years 9 months (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
Besides the above method of calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall give a brief on the third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 years or more service. If it is less than 24 years, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
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 error or suggestion, please notice me.
Abbas.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, Palakkad - 678 623, KERALA
Ph. +91 9447 467 667
From India, Bangalore
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For pensionable service, there is a formula to calculate the pension. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory ceiling of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In the case of the 2nd category, pensionable salary is Rs. 6500. In the other two cases, pensionable salary will be the average of the last twelve months. Also, if pensionable service is 20 years & above, a 2-year bonus will be given.
For details, please see the website:
EPFO <link updated to site home>
One example I shall quote:
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 years 9 months (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
Besides the above method of calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall give a brief on the third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 years or more service. If it is less than 24 years, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
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 error or suggestion, please notice me.
Abbas.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, Palakkad - 678 623, KERALA
Ph. +91 9447 467 667
From India, Bangalore
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Can anyone know how pension calculation is done when we finish off our services ? Date Of Birth 03/01/1980 Date Of Joining 05/04/2010 Thanks & Regards Mahesh Chand 9136406058
From India, Delhi
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From India, Delhi
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employees taken of pension 50 years(Half pension) please give calculation advice for me Employees Salary is 15000/- per month and he was join 01.08.1989
From India, Thane
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From India, Thane
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Dear Satyavankorgaonkar, Kindly provide Date of birth and Date of relieving from the job. I feel his salary on 16.11.1995 is above Rs. 2500. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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It is surprising to note that the pensionable salary is not calculated on the basis of the laid-down principle of the average of the last 60 months' salary. Instead, the calculation is done based on the salary, i.e., $6,500 from Nov 95 to Aug 2014 and $15,000 from Nov 14 until the date of attaining the pensionable age of 58 years.
Can anyone tell what should be correct for calculating the average, i.e., the last 60 months' salary, or as calculated like what RPFC?
From India, Barhiya
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Can anyone tell what should be correct for calculating the average, i.e., the last 60 months' salary, or as calculated like what RPFC?
From India, Barhiya
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Employee Benefits.doc
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