Dear All!!! Can any one say, what is the meaning of pensionable salary and how to calculate pension?
From India, Hyderabad
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From India, Hyderabad
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Dear Ravi,
Pensionable salary is the average salary of the preceding twelve months. The statutory salary ceiling is Rs. 6500.
For the period w.e.f. 16.11.1995, the pension calculation is as follows:
1. Round the pensionable service to the nearest year. For this, a fraction of 6 months and above will be considered as 1 year and added to the completed years. Fractions below 6 months will not be considered.
2. Find the pensionable salary as stated above.
Pension = Pensionable salary x Pensionable service/70.
Abbas.P.S
From India, Bangalore
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530Pensionable salary is the average salary of the preceding twelve months. The statutory salary ceiling is Rs. 6500.
For the period w.e.f. 16.11.1995, the pension calculation is as follows:
1. Round the pensionable service to the nearest year. For this, a fraction of 6 months and above will be considered as 1 year and added to the completed years. Fractions below 6 months will not be considered.
2. Find the pensionable salary as stated above.
Pension = Pensionable salary x Pensionable service/70.
Abbas.P.S
From India, Bangalore
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A short question for you,
My friend is working in a private software firm. His average basic salary for the last 12 months is 36,500, and the total salary per month is above 1 lakh (including conveyance, medical, special, LTA, variable pay, and there is no DA component). He has 11 years of service and has been contributing to the EPF for the last 11 years without a break. His PF contribution per month is 4,380, and the employer's contribution to the provident fund is also 4,380.
In this case, is the statutory salary ceiling of Rs. 6,500 applicable for determining the pensionable salary? Or is the pensionable salary 36,500?
What will be his pension (at the age of 58) if he quits his job now?
Is it possible for him to withdraw the Provident Fund (other than the Pension Contribution) if he resigns now? In this case, is he eligible for a pension?
Regards
From India, Madras
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My friend is working in a private software firm. His average basic salary for the last 12 months is 36,500, and the total salary per month is above 1 lakh (including conveyance, medical, special, LTA, variable pay, and there is no DA component). He has 11 years of service and has been contributing to the EPF for the last 11 years without a break. His PF contribution per month is 4,380, and the employer's contribution to the provident fund is also 4,380.
In this case, is the statutory salary ceiling of Rs. 6,500 applicable for determining the pensionable salary? Or is the pensionable salary 36,500?
What will be his pension (at the age of 58) if he quits his job now?
Is it possible for him to withdraw the Provident Fund (other than the Pension Contribution) if he resigns now? In this case, is he eligible for a pension?
Regards
From India, Madras
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Hi Abbas,
A short question for you,
My friend is working in a private software firm. His average basic salary for the last 12 months is ₹36,500, and his total salary per month is above ₹1 lakh (including conveyance, medical, special, LTA, variable pay, and there is no DA component). He has 11 years of service and has been contributing to the EPF for the last 11 years without a break. His PF contribution per month is ₹4,380, and the employer's contribution to the provident fund is also ₹4,380.
In this case, is the statutory salary ceiling of ₹6,500 applicable for determining the pensionable salary? Or is the pensionable salary ₹36,500? What will be his pension (at the age of 58) if he quits the job now? Is it possible for him to withdraw the Provident Fund (other than the Pension Contribution) if he resigns now? In this case, is he eligible for a pension?
Make it clear whether he contributed on the actual salary or the ceiling salary to EPS-95. If it is on the ceiling salary, his pension will be based on the ceiling salary. Otherwise, it will be based on the actual salary.
After being relieved from service, he can avail of a reduced pension from the age of 50 years onwards.
Abbas. P.S
From India, Bangalore
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A short question for you,
My friend is working in a private software firm. His average basic salary for the last 12 months is ₹36,500, and his total salary per month is above ₹1 lakh (including conveyance, medical, special, LTA, variable pay, and there is no DA component). He has 11 years of service and has been contributing to the EPF for the last 11 years without a break. His PF contribution per month is ₹4,380, and the employer's contribution to the provident fund is also ₹4,380.
In this case, is the statutory salary ceiling of ₹6,500 applicable for determining the pensionable salary? Or is the pensionable salary ₹36,500? What will be his pension (at the age of 58) if he quits the job now? Is it possible for him to withdraw the Provident Fund (other than the Pension Contribution) if he resigns now? In this case, is he eligible for a pension?
Make it clear whether he contributed on the actual salary or the ceiling salary to EPS-95. If it is on the ceiling salary, his pension will be based on the ceiling salary. Otherwise, it will be based on the actual salary.
After being relieved from service, he can avail of a reduced pension from the age of 50 years onwards.
Abbas. P.S
From India, Bangalore
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Hi Abbas, thanks for replying. As per his payslip, his contribution to PF is 4,380, and the employer contribution is also 4,380. So, I think this means he contributes based on the actual salary (because 4,380 is 12% of 36,500 (basic) and the company contribution is also 4,380).
Question on Provident Fund Withdrawal
My second question is on the amount accumulated other than the pension fund, i.e., is it possible for him to withdraw the Provident Fund (other than the Pension Contribution) if he resigns now? In this case, is he eligible for a pension?
Regards
From India, Madras
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Question on Provident Fund Withdrawal
My second question is on the amount accumulated other than the pension fund, i.e., is it possible for him to withdraw the Provident Fund (other than the Pension Contribution) if he resigns now? In this case, is he eligible for a pension?
Regards
From India, Madras
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We cannot calculate the pension contribution based on the PF contribution. That is to be cleared separately.
After relieving from service, a PF member can withdraw their PF amount. PF pension is not connected with the PF withdrawal.
Regards, Abbas. P. S.
From India, Bangalore
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After relieving from service, a PF member can withdraw their PF amount. PF pension is not connected with the PF withdrawal.
Regards, Abbas. P. S.
From India, Bangalore
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I retired in 2009 at the age of 58 and started receiving my pension. I am wondering if anyone can clarify whether the salary considered for calculating enhanced pension includes other allowances, such as performance-based allowances, in addition to the basic salary and dearness allowance (DA). This query arises in light of a recent Supreme Court judgment.
From India, Bengaluru
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From India, Bengaluru
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(Fact Checked)-The salary for calculating enhanced pension should include all allowances, not just basic and DA, as per the recent Supreme Court judgement. Performance-based allowances are likely to be included. (1 Acknowledge point)