Dear all please give an in formations about pension and gratuity
From India, Bangalore
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Gratuity
For gratuity, the minimum service required is 4 years and 240 days. If the partial year accompanied by full years is 6 months or less, it will be rounded down. If it is above 6 months, it will be rounded up. The formula to calculate Gratuity is Salary x Service (as rounded above) x 15/26.
Pension
There is no upper limit for EPS-95 pension. For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The former is known as past service and the latter as pensionable service. Past service is divided into four slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 years & 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 and above, the compensation will be Rs. 85, 105, 135, and 170. This amount applies to those who turn 58 years old on 16.11.95. If one attains 58 years after 16.11.95, the compensation will be multiplied by a factor specified in Table B based on the difference between 16.11.95 and the date of turning 58.
To calculate pensionable service, use the formula: Pensionable Salary x Pensionable Service / 70. Pensionable salary falls into three categories: 1) Below Rs. 6500, 2) Rs. 6500 & above (with contributions at the statutory ceiling of Rs. 6500), and 3) Above Rs. 6500 (opted to contribute on actual salary). For category 2, the pensionable salary is Rs. 6500. For the other two categories, the pensionable salary is the average of the last twelve months. Additionally, if the pensionable service is 20 years and above, a bonus of 2 years will be provided.
For more details, please visit the website: http://epfindia.com
One example I will reference:
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 and above
- Salary on reaching 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 years 9 months (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, rounded to 3 decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 years & above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
In addition to the calculation method above, there is a minimum for those with service before 16.11.95. They are classified into three categories in EPS-95:
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 elapsed, I will provide a brief explanation of the third.
The minimum pensionable benefit is Rs. 635 and the past service benefit, as mentioned earlier, is subject to a minimum of Rs. 800 for 24 years or more of service. If the service is less than 24 years, this amount will be reduced proportionately (amount x actual service / 24), with a minimum of Rs. 450.
I will include an Excel worksheet to calculate pension. 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 the contribution to the pension fund), and any breaks in service before and after 16.11.95 in the green columns. The results will be displayed in the yellow columns, while the red columns contain static information.
For any errors or suggestions, please notify me.
Regards, Abbas.P.S, ITI Ltd, PALAKKAD - 678 623.
Phone: [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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For gratuity, the minimum service required is 4 years and 240 days. If the partial year accompanied by full years is 6 months or less, it will be rounded down. If it is above 6 months, it will be rounded up. The formula to calculate Gratuity is Salary x Service (as rounded above) x 15/26.
Pension
There is no upper limit for EPS-95 pension. For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The former is known as past service and the latter as pensionable service. Past service is divided into four slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 years & 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 and above, the compensation will be Rs. 85, 105, 135, and 170. This amount applies to those who turn 58 years old on 16.11.95. If one attains 58 years after 16.11.95, the compensation will be multiplied by a factor specified in Table B based on the difference between 16.11.95 and the date of turning 58.
To calculate pensionable service, use the formula: Pensionable Salary x Pensionable Service / 70. Pensionable salary falls into three categories: 1) Below Rs. 6500, 2) Rs. 6500 & above (with contributions at the statutory ceiling of Rs. 6500), and 3) Above Rs. 6500 (opted to contribute on actual salary). For category 2, the pensionable salary is Rs. 6500. For the other two categories, the pensionable salary is the average of the last twelve months. Additionally, if the pensionable service is 20 years and above, a bonus of 2 years will be provided.
For more details, please visit the website: http://epfindia.com
One example I will reference:
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 and above
- Salary on reaching 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 years 9 months (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, rounded to 3 decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 years & above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
In addition to the calculation method above, there is a minimum for those with service before 16.11.95. They are classified into three categories in EPS-95:
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 elapsed, I will provide a brief explanation of the third.
The minimum pensionable benefit is Rs. 635 and the past service benefit, as mentioned earlier, is subject to a minimum of Rs. 800 for 24 years or more of service. If the service is less than 24 years, this amount will be reduced proportionately (amount x actual service / 24), with a minimum of Rs. 450.
I will include an Excel worksheet to calculate pension. 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 the contribution to the pension fund), and any breaks in service before and after 16.11.95 in the green columns. The results will be displayed in the yellow columns, while the red columns contain static information.
For any errors or suggestions, please notify me.
Regards, Abbas.P.S, ITI Ltd, PALAKKAD - 678 623.
Phone: [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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Gratuity calculation.doc
PENSION CALCULATION.xls
PENSION CALCULATION.pdf