dear sir kindly inform the employees pension calculation. How to calculate the monthly pension.
From India, Madras
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From India, Madras
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Pension Calculation Overview
For pension calculation, the service is divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The first is called past service, and the latter is 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
- 20 years and 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 and above, this will be Rs. 85, 105, 135, and 170. This amount is for those who attain 58 years on 16.11.95. For 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
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 and above, but contribution on the statutory ceiling of Rs. 6500
3. Above Rs. 6500 and opted to contribute on actual salary
In the case of the second category, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Also, if the pensionable service is 20 years and above, a 2-year bonus will be given.
For details, please visit the website: http://epfindia.com.
Example Calculation
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 and above
- Salary on completion of 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 years 9 months (approximately 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 and 1.1.2019): 6.102 (This can be calculated as 1.08 to the power of 24 - 0.5, correct to three decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 and above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
Minimum Pension for Service Before 16.11.95
In the EPS-95, they are categorized into three groups:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 and 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. The pensionable benefit (minimum) is Rs. 635, and the past service benefit, as mentioned above, is subject to a minimum of Rs. 800. This amount is for 24 years or more of 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 breaks 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, ITI LTD, PALAKKAD - 678 623.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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530For pension calculation, the service is divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The first is called past service, and the latter is 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
- 20 years and 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 and above, this will be Rs. 85, 105, 135, and 170. This amount is for those who attain 58 years on 16.11.95. For 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
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 and above, but contribution on the statutory ceiling of Rs. 6500
3. Above Rs. 6500 and opted to contribute on actual salary
In the case of the second category, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Also, if the pensionable service is 20 years and above, a 2-year bonus will be given.
For details, please visit the website: http://epfindia.com.
Example Calculation
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 and above
- Salary on completion of 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 years 9 months (approximately 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 and 1.1.2019): 6.102 (This can be calculated as 1.08 to the power of 24 - 0.5, correct to three decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 and above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
Minimum Pension for Service Before 16.11.95
In the EPS-95, they are categorized into three groups:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 and 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. The pensionable benefit (minimum) is Rs. 635, and the past service benefit, as mentioned above, is subject to a minimum of Rs. 800. This amount is for 24 years or more of 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 breaks 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, ITI LTD, PALAKKAD - 678 623.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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Amendment in Employees Pension Scheme, 1995.pdf