Dear All, Can anyone please share how pension wages are calculated ? regards..Malini
From India, Bangalore
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From India, Bangalore
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Dear Malini,
I believe your query pertains to EPS-95.
For pension calculation, the service will be divided into two parts: service before 16.11.95 and service starting from 16.11.95. The former is referred to as past service, and the latter as pensionable service. Past service is further categorized into four 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 salaries of Rs. 2500 & above, the compensation will be Rs. 85, 105, 135, and 170. These amounts apply to those who turn 58 years old on 16.11.95. For individuals who turn 58 years old after 16.11.95, the compensation will be multiplied by a factor specified in table B, based on the time difference between 16.11.95 and the date of their 58th birthday.
Regarding pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary is divided into three categories: 1) Below Rs. 6500, 2) Rs. 6500 & above, but with contributions at the statutory ceiling of Rs. 6500, and 3) Above Rs. 6500 & opted to contribute on actual salary. For 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. Additionally, a 2-year bonus will be provided for pensionable service of 20 years & above.
For further details, please visit the website: [EPFO](http://epfindia.com)
One example I can provide:
Date of Birth - 2.1.1961
Date of Joining - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary upon turning 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 & 1.1.2019) - 6.102
(Please calculate this as 1.08 to the power of 24 - 0.5, rounded 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
Apart from the method mentioned above, there is a minimum provision for individuals with service before 16.11.95 in the EPS-95, categorized into three groups:
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 have concluded, I will provide a brief explanation of the third category.
The minimum pensionable benefit is Rs. 635, along with the past service benefit mentioned earlier, with a minimum total of Rs. 800 for individuals with 24 years or more of service. If the service is less than 24 years, the amount will be adjusted proportionally (amount x actual service / 24), but not less than Rs. 450.
I will include an Excel worksheet for pension calculation. Enter the Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in accordance with pension fund contributions), and any breaks in service before and after 16.11.95, indicated in the green column. The results will be displayed in the yellow column, with the red column for static information.
For any errors or suggestions, please notify me.
Abbas.P.S, ITI Ltd, PALAKKAD - 678 623.
Phone: +91 9447 467 667
From India, Bangalore
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530I believe your query pertains to EPS-95.
For pension calculation, the service will be divided into two parts: service before 16.11.95 and service starting from 16.11.95. The former is referred to as past service, and the latter as pensionable service. Past service is further categorized into four 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 salaries of Rs. 2500 & above, the compensation will be Rs. 85, 105, 135, and 170. These amounts apply to those who turn 58 years old on 16.11.95. For individuals who turn 58 years old after 16.11.95, the compensation will be multiplied by a factor specified in table B, based on the time difference between 16.11.95 and the date of their 58th birthday.
Regarding pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary is divided into three categories: 1) Below Rs. 6500, 2) Rs. 6500 & above, but with contributions at the statutory ceiling of Rs. 6500, and 3) Above Rs. 6500 & opted to contribute on actual salary. For 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. Additionally, a 2-year bonus will be provided for pensionable service of 20 years & above.
For further details, please visit the website: [EPFO](http://epfindia.com)
One example I can provide:
Date of Birth - 2.1.1961
Date of Joining - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary upon turning 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 & 1.1.2019) - 6.102
(Please calculate this as 1.08 to the power of 24 - 0.5, rounded 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
Apart from the method mentioned above, there is a minimum provision for individuals with service before 16.11.95 in the EPS-95, categorized into three groups:
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 have concluded, I will provide a brief explanation of the third category.
The minimum pensionable benefit is Rs. 635, along with the past service benefit mentioned earlier, with a minimum total of Rs. 800 for individuals with 24 years or more of service. If the service is less than 24 years, the amount will be adjusted proportionally (amount x actual service / 24), but not less than Rs. 450.
I will include an Excel worksheet for pension calculation. Enter the Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in accordance with pension fund contributions), and any breaks in service before and after 16.11.95, indicated in the green column. The results will be displayed in the yellow column, with the red column for static information.
For any errors or suggestions, please notify me.
Abbas.P.S, ITI Ltd, PALAKKAD - 678 623.
Phone: +91 9447 467 667
From India, Bangalore
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what is meaning of sec 31 under bonus act 1965 & plz send the formula of calculating allocable surpluss Regards Hemant Sharma
From India, Delhi
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From India, Delhi
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The Payment Of Bonus Act, 1965 5 november 2016.pdf
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Payment of Bonus Act 1965.doc