HI ALL, Sir please tell me that whan a employee is elgible for pension ane when he takes all benifits of it. thanks & Regards Jagjeet
From India, Bhatinda
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26From India, Bhatinda
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Hi Jagjeet,
As per my belief, when an employee completes 10 years of service or reaches 58 years of age, then they will be eligible for a pension. Dear seniors, please correct me if I am wrong.
Regards,
Nilesh Baraiya
From India, Surat
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As per my belief, when an employee completes 10 years of service or reaches 58 years of age, then they will be eligible for a pension. Dear seniors, please correct me if I am wrong.
Regards,
Nilesh Baraiya
From India, Surat
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Dear Jagjeet & Nilesh,
For pension eligibility, a minimum of ten years of service in the Provident Fund (PF) is required. Upon reaching the age of 58, superannuation pension eligibility is unconditional. Even after turning 50 years old, pension eligibility is subject to the following conditions:
i. The individual should not be employed in a PF applicable job.
ii. For individuals under 58 years of age, a 4% reduction will be applied to the pension for each year.
Abbas.P.S
From India, Bangalore
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For pension eligibility, a minimum of ten years of service in the Provident Fund (PF) is required. Upon reaching the age of 58, superannuation pension eligibility is unconditional. Even after turning 50 years old, pension eligibility is subject to the following conditions:
i. The individual should not be employed in a PF applicable job.
ii. For individuals under 58 years of age, a 4% reduction will be applied to the pension for each year.
Abbas.P.S
From India, Bangalore
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Dear Sir,
Thank you for your reply.
I have one more question:
1. An employee worked at another company for 5 years and then left the job without withdrawing his pension amount from the previous account.
2. He has now been with our organization for the past 6 years and transferred his previous pension to his current PF account. He now intends to leave the job and withdraw the entire amount.
3. Could you please confirm if he is eligible to receive the pension?
4. He is 55 years old.
With regards,
Jagjeet Singh
From India, Bhatinda
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Thank you for your reply.
I have one more question:
1. An employee worked at another company for 5 years and then left the job without withdrawing his pension amount from the previous account.
2. He has now been with our organization for the past 6 years and transferred his previous pension to his current PF account. He now intends to leave the job and withdraw the entire amount.
3. Could you please confirm if he is eligible to receive the pension?
4. He is 55 years old.
With regards,
Jagjeet Singh
From India, Bhatinda
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Dear Jagjeet,
As you have mentioned that the employee has a past service of 5 years and present service of 6 years, together there is a service of 11 years. As he has crossed the age of 50 years, he is now eligible to draw a pension.
If you provide his Date of Birth, Date of Join, and Date of Exit from both services, average salary of the last 12 months, details of any breaks in service, etc., I shall inform the pension amount both at present as well as at the age of 58 years.
Abbas
From India, Bangalore
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As you have mentioned that the employee has a past service of 5 years and present service of 6 years, together there is a service of 11 years. As he has crossed the age of 50 years, he is now eligible to draw a pension.
If you provide his Date of Birth, Date of Join, and Date of Exit from both services, average salary of the last 12 months, details of any breaks in service, etc., I shall inform the pension amount both at present as well as at the age of 58 years.
Abbas
From India, Bangalore
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Dear Jagjeet,
Regarding PF accumulation, the interest will be monthly accumulated and rounded to the nearest rupee separately for both employee and employer contributions. I shall insert an Excel sheet. Please extend the rows as per your requirement and enter the monthly applicable salary and annual interest rate.
Details of interest rates are as follows:
1. From 1989-90 to 1999-00 - 12%
2. 2000-01 - 11%
3. 2001-02 to 2004-05 - 9.5%
4. 2005-06 onwards - 8.5%
Note: The Excel sheet is prepared on the basis of an 8.33% contribution to EPS-95, applicable from 16.11.95. Also, please note that the ceiling limit from 16.11.95 to 31.5.01 is Rs. 5000 and from 1.6.01 is Rs. 6500. Kindly enter the ceiling limit, interest rate, and applicable salary.
Thank you.
From India, Bangalore
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Regarding PF accumulation, the interest will be monthly accumulated and rounded to the nearest rupee separately for both employee and employer contributions. I shall insert an Excel sheet. Please extend the rows as per your requirement and enter the monthly applicable salary and annual interest rate.
Details of interest rates are as follows:
1. From 1989-90 to 1999-00 - 12%
2. 2000-01 - 11%
3. 2001-02 to 2004-05 - 9.5%
4. 2005-06 onwards - 8.5%
Note: The Excel sheet is prepared on the basis of an 8.33% contribution to EPS-95, applicable from 16.11.95. Also, please note that the ceiling limit from 16.11.95 to 31.5.01 is Rs. 5000 and from 1.6.01 is Rs. 6500. Kindly enter the ceiling limit, interest rate, and applicable salary.
Thank you.
From India, Bangalore
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Regarding 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 is 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, 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.
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3 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 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: [http://epfindia.com](http://epfindia.com) <link updated to site home>
One example I shall quote:
Date of Birth - 2.1.1961
Date of join - 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 yr 9 m (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 yrs 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.
Now regarding your example: For ten years of service, the pension amount is Rs. 929. Now it is Rs. 789 & after completion of 55 years (w.e.f 20.9.2010), it will be Rs. 822.
I shall insert an Excel worksheet to calculate the pension. Enter Date of Birth, Date of Join, 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 to me.
Abbas.P.S
From India, Bangalore
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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 is 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, 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.
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3 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 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: [http://epfindia.com](http://epfindia.com) <link updated to site home>
One example I shall quote:
Date of Birth - 2.1.1961
Date of join - 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 yr 9 m (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 yrs 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.
Now regarding your example: For ten years of service, the pension amount is Rs. 929. Now it is Rs. 789 & after completion of 55 years (w.e.f 20.9.2010), it will be Rs. 822.
I shall insert an Excel worksheet to calculate the pension. Enter Date of Birth, Date of Join, 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 to me.
Abbas.P.S
From India, Bangalore
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