Sir,
Pension calculation is = pensionable service * pensionable salary / 70. Suppose my pensionable salary is 10,000, and I worked for 20 years and then retired. According to the formula, the pension would be 10,000 * 20 / 70 = 2,857. However, the maximum limit is 1,250. Please clarify this doubt.
If my basic salary is 12,000, there will be EPS contribution, and I am entitled to a pension. But if my basic salary increases to 17,000, am I still entitled to a pension? In this case, how should the calculation be done?
Regards
From India, Mumbai
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9Pension calculation is = pensionable service * pensionable salary / 70. Suppose my pensionable salary is 10,000, and I worked for 20 years and then retired. According to the formula, the pension would be 10,000 * 20 / 70 = 2,857. However, the maximum limit is 1,250. Please clarify this doubt.
If my basic salary is 12,000, there will be EPS contribution, and I am entitled to a pension. But if my basic salary increases to 17,000, am I still entitled to a pension? In this case, how should the calculation be done?
Regards
From India, Mumbai
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Dear friends,
For service after November 16, 1995, EPFO applies two types of calculation. Even though the pensionable salary is calculated as the average of the last 60 months' salary, there are two types of ceiling. Up to August 31, 2014, the ceiling of the pensionable salary is Rs. 6500, and thereafter Rs. 15000.
Even if your salary crosses the ceiling limit, your membership in EPS will continue with a contribution based on the ceiling limit.
Abbas P.S
From India, Bangalore
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For service after November 16, 1995, EPFO applies two types of calculation. Even though the pensionable salary is calculated as the average of the last 60 months' salary, there are two types of ceiling. Up to August 31, 2014, the ceiling of the pensionable salary is Rs. 6500, and thereafter Rs. 15000.
Even if your salary crosses the ceiling limit, your membership in EPS will continue with a contribution based on the ceiling limit.
Abbas P.S
From India, Bangalore
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PENSION CALCULATION.xls
PENSION CALCULATION.pdf
EPF PENSION CALCULATION.zip