Dear Friends, Can anyone tell me how is the calculation done for Provident Fund Pension for a person who has worked in a company for more than 10 years? Regards Sanjib Datta
From India, Bhubaneswar
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2From India, Bhubaneswar
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Can anyone tell me how the calculation is done for Provident Fund Pension for a person who has worked in a company for more than 10 years? Currently, the contribution on the statutory ceiling is Rs. 15,000 from Rs. 6,500. Please help me, Sir.
Regards,
RAMESH.B
From United States,
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Regards,
RAMESH.B
From United States,
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Please find out whether the last month's contribution to EPS is for the full month or partial. For a member whose birthday is on the 15th of a month, they attain 58 years on the 14th, and accordingly, the contribution to EPS for that month will be partial. If the contribution to EPS in the last month is partial, that month will not be taken into account for the calculation of the pensionable salary.
Calculation of Pensionable Salary
Take the average of the last 60 months. For example, if a member contributes up to the 31st of March 2015 on the ceiling salary to EPS, the calculation of the pensionable salary is as follows:
- Salary from 01.09.2014 to 31.03.2015 (7 months) = Rs. 15000 per month.
- Salary up to 31.08.2014 (60-7 = 53 months) = Rs. 6500 per month.
- Average salary = ((6500x53) + (15000x7)) / 60 = (344500 + 105000) / 60 = 449500 / 60 = 7491.67
- Pension for 10 years' service = 7491.67 x 10 / 70 = 1070.
Regards,
Abbas.P.S
From India, Bangalore
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Calculation of Pensionable Salary
Take the average of the last 60 months. For example, if a member contributes up to the 31st of March 2015 on the ceiling salary to EPS, the calculation of the pensionable salary is as follows:
- Salary from 01.09.2014 to 31.03.2015 (7 months) = Rs. 15000 per month.
- Salary up to 31.08.2014 (60-7 = 53 months) = Rs. 6500 per month.
- Average salary = ((6500x53) + (15000x7)) / 60 = (344500 + 105000) / 60 = 449500 / 60 = 7491.67
- Pension for 10 years' service = 7491.67 x 10 / 70 = 1070.
Regards,
Abbas.P.S
From India, Bangalore
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Provident Fund - Excluded Employee - Definition.pdf
PROVIDENT FUND CALCULATION.xls