Dear All!!! Can any one say, what is the meaning of pensionable salary and how to calculate pension?
From India, Hyderabad
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1From India, Hyderabad
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Dear Ravi,
Pensionable salary is the average salary of preceeding twelve months. Statutory salary ceiling is Rs. 6500.
For the period w.e.f 16.11.1995, the pension calculation is as follows.
1. Round the pensionable service to nearest year. For this, fraction of 6 months and above will be considered as 1 year and to be added with the completed years. But fraction below 6 months will not be considered.
2. Find the pensionable salary stated as above.
Pension = Pensionable salary x Pensionable service/70.
Abbas.P.S
From India, Bangalore
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Pensionable salary is the average salary of preceeding twelve months. Statutory salary ceiling is Rs. 6500.
For the period w.e.f 16.11.1995, the pension calculation is as follows.
1. Round the pensionable service to nearest year. For this, fraction of 6 months and above will be considered as 1 year and to be added with the completed years. But fraction below 6 months will not be considered.
2. Find the pensionable salary stated as above.
Pension = Pensionable salary x Pensionable service/70.
Abbas.P.S
From India, Bangalore
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Hi Abbas,
A short question to you,
my friend is working in a Private Software firm, his average basic salary is 36,500 for the last 12 months and total salary per month is above 1 lakh.(convayence+medical+special+LTA+Variable pay and there is no DA component) he is having 11 years of service(also contributing to EPFfor last 11 years without break). his PF contribution per month is 4380 and Employer contribution to provident fund is also 4380.
In this case whether Statutory salary ceiling of Rs. 6500 is applicable for finding the pensionable salary?
Or is the pensionable salary is 36,500 ?
What will be his pension(at the age of 58) if he quit job now ?
Is it possible for him to withdraw the Providend Fund (other than Pension Contribution) if he resigns now? in this case is he eligible for pension?
From India, Madras
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A short question to you,
my friend is working in a Private Software firm, his average basic salary is 36,500 for the last 12 months and total salary per month is above 1 lakh.(convayence+medical+special+LTA+Variable pay and there is no DA component) he is having 11 years of service(also contributing to EPFfor last 11 years without break). his PF contribution per month is 4380 and Employer contribution to provident fund is also 4380.
In this case whether Statutory salary ceiling of Rs. 6500 is applicable for finding the pensionable salary?
Or is the pensionable salary is 36,500 ?
What will be his pension(at the age of 58) if he quit job now ?
Is it possible for him to withdraw the Providend Fund (other than Pension Contribution) if he resigns now? in this case is he eligible for pension?
From India, Madras
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(Fact Check Failed/Partial)-The user's reply contains incorrect information regarding the calculation of pensionable salary and the eligibility for pension and withdrawal of Provident Fund. The Statutory salary ceiling of Rs. 6500 is applicable for calculating the pensionable salary. The pensionable salary in this case would be Rs. 6500. The pension amount at the age of 58 would depend on the total years of service and the pension scheme provisions. If he resigns, he can withdraw the Provident Fund excluding the Pension Contribution and would be eligible for pension benefits as per the scheme.
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Make it clear that whether he contributed on actual salary or ceiling salary to EPS-95. If it is on ceiling salary his pension will be based on ceiling salary. Otherwise it will be based on actual.
After relieved from service he can avail reduced pension from the age of 50 yrs onwards.
Abbas.P.S
From India, Bangalore
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After relieved from service he can avail reduced pension from the age of 50 yrs onwards.
Abbas.P.S
From India, Bangalore
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(Fact Check Failed/Partial)-The user's reply is partially correct. The pensionable salary for EPS-95 is based on the actual salary contributed, not the statutory ceiling. Reduced pension can be availed from age 50. Withdrawal of PF is possible, but pension eligibility may vary.
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Hi Abbas,
Thanks for Replying... As per his pay slip, his contribution to PF is 4380 and Employer contribution is also 4380 . so I think this means he contributes based on actual salary. (because 4380 is 12% of 36,500(basic) and the company contribution also 4380)
My second question is on the amount accumulated other than pensionfund
i.e Is it possible for him to withdraw the Providend Fund (other than Pension Contribution) if he resigns now? in this case is he eligible for pension?
From India, Madras
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Thanks for Replying... As per his pay slip, his contribution to PF is 4380 and Employer contribution is also 4380 . so I think this means he contributes based on actual salary. (because 4380 is 12% of 36,500(basic) and the company contribution also 4380)
My second question is on the amount accumulated other than pensionfund
i.e Is it possible for him to withdraw the Providend Fund (other than Pension Contribution) if he resigns now? in this case is he eligible for pension?
From India, Madras
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(Fact Check Failed/Partial)-[The user's reply contains some inaccuracies. The Provident Fund (PF) withdrawal rules are subject to specific conditions and are not solely based on the employee's contribution. Eligibility for pension benefits upon resignation also depends on the terms of the pension scheme. Consulting HR policies and relevant labor laws is advised for accurate information.]
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We cannot calculate the pension contribution based on the PF contribution. That is to be cleared seperately.
After relieving from service, a PF member can withdraw his PF amount. PF pension is not connected with the PF withdrawal.
Abbas.P.S
From India, Bangalore
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After relieving from service, a PF member can withdraw his PF amount. PF pension is not connected with the PF withdrawal.
Abbas.P.S
From India, Bangalore
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(Fact Check Failed/Partial)-The user reply contains inaccuracies. Pension calculation is related to the service period, salary, and other factors. PF withdrawal is separate from pension. Please ensure accurate information is provided to avoid confusion.
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I retired in 2009 at the age of 58 and started receiving my pension. I am wondering if anyone can clarify whether the salary considered for calculating enhanced pension includes other allowances, such as performance-based allowances, in addition to the basic salary and dearness allowance (DA). This query arises in light of a recent Supreme Court judgment.
From India, Bengaluru
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From India, Bengaluru
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(Fact Checked)-The salary for calculating enhanced pension should include all allowances, not just basic and DA, as per the recent Supreme Court judgement. Performance-based allowances are likely to be included. (1 Acknowledge point)
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Pensionable salary is not necessarily the average salary of the preceding twelve months, and the method of calculating pension lacks key details. A more comprehensive explanation is needed.