Pension Details Query
I have a question regarding my employee's PPO details as outlined below:
Total Eligible Service - 17 years (before - 15-11-95 0 years)
Pensionable Salary - 14575 instead of wages on the date of Exit - 15000/-
Pension Amount - 2126/-
My Questions Are:
1) According to the date of Exit, with basic wages (since more than 5 years) at 15000, how was the pensionable salary calculated as 14575/-?
2) If his pensionable salary is 14575 with a service of 17 years, how was the monthly pension of 2126/- calculated?
I request anyone with knowledge in this area to please share insights.
Thank you,
Bipin
From India, Ahmedabad
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1I have a question regarding my employee's PPO details as outlined below:
Total Eligible Service - 17 years (before - 15-11-95 0 years)
Pensionable Salary - 14575 instead of wages on the date of Exit - 15000/-
Pension Amount - 2126/-
My Questions Are:
1) According to the date of Exit, with basic wages (since more than 5 years) at 15000, how was the pensionable salary calculated as 14575/-?
2) If his pensionable salary is 14575 with a service of 17 years, how was the monthly pension of 2126/- calculated?
I request anyone with knowledge in this area to please share insights.
Thank you,
Bipin
From India, Ahmedabad
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Dear Member, Rs. 14,575/- is the last Pensionable salary. That does not mean it is the Average Pensionable Salary. For pension calculation, we need the average pension salary of the last 60 months (prior to the Date Of Leaving). Rs. 15,000 Average Pensionable Salary will be calculated for those who retire/leave on or after 31st Aug '19 (because the 15,000/- pension salary was implemented wef 01st Sep '14). Any employee who leaves/retires before 31st Aug '19 will have an Average Pensionable Salary of less than 15,000/-.
If an employee's last Pension Salary is 15,000/-, it means that during the last five years, it might have been on the lesser side. Please provide the exact date of leaving and the exact preceding five years' Pension Salary. Only then can we calculate an approximate Average Pensionable Salary and approximate pension amount.
However, based on the provided data, the pension amount seems to be on the lower side. But before making any final comments, we would require exact data. Also, clarify if there is a Non-Contribution Period (NCP) in his service. That is also a considerable point for pension calculation.
Also, clarify whether Rs. 14,575/- (Pensionable Salary) is shown in the Pension document or if you are calculating it on your own.
Fellow members can shed more light on the matter.
From India, Delhi
Acknowledge(0)Amend(0)
If an employee's last Pension Salary is 15,000/-, it means that during the last five years, it might have been on the lesser side. Please provide the exact date of leaving and the exact preceding five years' Pension Salary. Only then can we calculate an approximate Average Pensionable Salary and approximate pension amount.
However, based on the provided data, the pension amount seems to be on the lower side. But before making any final comments, we would require exact data. Also, clarify if there is a Non-Contribution Period (NCP) in his service. That is also a considerable point for pension calculation.
Also, clarify whether Rs. 14,575/- (Pensionable Salary) is shown in the Pension document or if you are calculating it on your own.
Fellow members can shed more light on the matter.
From India, Delhi
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SALARY SHEET CALCULATION.xls
Salary calculation.doc