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Dear Prem, the formula is given in pension act 1995,i.e. Pension=Pensionable salary(maximum 6500/-pm)*no. of years worked(shouldt' less than 10)/70. Warm Regards, Pawan Singh. HR Exe.
From India, Gurgaon
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From India, Gurgaon
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Dear Pawan, Not very clear. Please elaborate with example. What do you mean by pensionable salary? Do you mean basic salary? Rajendra.
From India, Pune
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From India, Pune
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There is no upper limit for EPS-95 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 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 categories: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on 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: [EPFO](http://epfindia.com)
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 calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three categories:
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 yrs, 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 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 colour column. The results will appear in the yellow colour column. The red colour is for static information.
In case of any error or suggestion, please notify me.
Abbas.P.S,
ITI Ltd, Palakkad - 678 623
Ph +91 9447 467 667
From India, Bangalore
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For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3 categories: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on 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: [EPFO](http://epfindia.com)
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 calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three categories:
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 yrs, 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 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 colour column. The results will appear in the yellow colour column. The red colour is for static information.
In case of any error or suggestion, please notify me.
Abbas.P.S,
ITI Ltd, Palakkad - 678 623
Ph +91 9447 467 667
From India, Bangalore
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Kindly please help with Table B for factors of prior Nov 1995 service. Does this also cover the different employers served? What is the impact of the few days of break in service between different employers' service (e.g., in my case, there were two such breaks, each less than 7 days)? Thanks
From Singapore, Singapore
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From Singapore, Singapore
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