Dear All, Can you please help me in calculation of Pension scheme? Suppose if a person has 20 years of experience and he has around 50,000/- contributed towards pension scheme, what is the calculation on a monthly basis which he will be entitled to receive? Till when? In case of his death how much percentage of the total amount will the nominee receive? Please help me with these information.
Thanks in advance.
Regards,
Laksh
From India, Bangalore
Thanks in advance.
Regards,
Laksh
From India, Bangalore
Hey,
The simple formula is last 12 months average pay from the month of superannuation divided by 70 multiplied by length of total service rendered.
Conditions - minimum 10 years of service rendered and attended the minimum age of 50 years and other criterias as laids down because the secheme was effective from 1995.
R.K.P
The simple formula is last 12 months average pay from the month of superannuation divided by 70 multiplied by length of total service rendered.
Conditions - minimum 10 years of service rendered and attended the minimum age of 50 years and other criterias as laids down because the secheme was effective from 1995.
R.K.P
to add the benefit will be continued till death of the pensioner and in case of death widow pension will be reduced to 50% to the nominee. Thanks, R.K.P
Hai guys
This the working with example
[b]Those who joined AFTER 15.11.1995[/b]
Here, the formula of calculation of pension is similar to that of a Govt. Employee. ie.,
Average Salary X Service
-------------
70
Maximum service for the calculation of service is 35 yrs. If a member has maximum service, pension will be:
Average Salary
-------------------
2
The Average Salary here refers is named as pensionable salary in the scheme. It is arrived by considering the average contributing salary preceeding 12 months from the date of exit
Eventhough you may be drawing Rs.20,000/- as salary per month, your company need to contribute only Rs. 541/- towards pension fund
Those who joined BEFORE 15.11.1995
Here, the formula of calculation of pension is:
Past Service benifit + Pensionable service benefit - Proportionate reduction
subject to minimum pension specified for each group.
( X - Rs.800 , Y - Rs.600, Z - Rs.500 )
These three categories of members are defined with reference to their age as on 16.11.1995 as follows:
„h X : those who have not attained 48 years
„h Y : those who have attained 48 years but less that 53 years ; and
„h Z : those who have attained 53 years or more.
Past service benefit:Portion of pension amount because of your service before 15.11.1995(For the calculation of this you have to refer 2 tables) Pensionable Service Benefit:Portion of pension amount because of your service after 15.11.1995(same as the calculation of pension who joined after 15.11.1995) Proportionate reduction: if the past service is less than 24 years and past service benifit + Pensionable service pension is less than Rs.500/-
For a member who joined EPF before 15.11.1995 have 3 components in Pension calculation:
(a)Past Service Benefit (b)Pensionable Service Benefit (c)Proportionate Reduction
For those who joined after 15.11.1995, only the 2nd component, viz., Pensionable Service Benefit is applicable
1. Past Service benefit: depends upon the wage as on 15.11.1995 and the service rendered in FPF '71 ( i.e. upto 15.11.1995 ) is as shown below: TABLE - A
Past Service Benefit in Rs. Benefit in Rs.
Wages as on 15.11.1995 is upto Rs.2500/ Wages as on 15.11.1995 is more than Rs.2500/-
Upto 11 years 80 85
More than 11 years but upto 15 years 95 105
More than 15 years but less than 20 years 120 135
Beyond 20 years 150 170
The above amount is the benefit payable on completion of 58 years of age as on 16.11.1995.
For the calculation of pension benefits before 58 years (if a member do not complete 58 years of age on 15.11.1995, his past service benefit will be increased by the below factor - Early pension cases ) the above benefit is multiplied by the TABLE - B factor to arrive at the past service benefit.
TABLE - B
If Years to 58 of age from 15.11.1995 is: then factor is:
less than 1 year 1.049
less than 2 years 1.154
less than 3 years 1.269
less than 4 years 1.396
less than 5 years 1.536
less than 6 years 1.689
less than 7 years 1.858
less than 8 years 2.044
less than 9 years 2.248
less than 10 years 2.473
less than 11 years 2.720
less than 12 years 2.992
less than 13 years 3.29
less than 14 years 3.621
less than 15 years 3.983
less than 16 years 4.381
less than 17 years 4.819
less than 18 years 5.301
less than 19 years 5.810
less than 20 years 6.414
less than 21 years 7.056
less than 22 years 7.761
less than 23 years 8.537
less than 24 years 9.390
2. Pensionable Service benefit=
pensionable salary X pen.service
---------------------------------------
70
subject to minimum of Rs.335, Rs. 438, Rs.635 for receiving early pension ( before 58 years ) for date of commencement of pension between 01/04/1993 and 15/11/2000, 16/11/2000 and 15/11/2005, 16/11/2005 respectively.
AND
subject to minimum of Rs.635, Rs.438, Rs.335 for receiving pension on or after 58 years for date of commencement of pension between 01/04/193 and 15/11/2000, 16/11/2000 and 15/11/2005 , 16/11/2005 respectively.
(If member has joined after 15.11.1995, only Pensionable Service Benefit is applicable)
3. Proportionate reduction: arises if the past service is less than 24 years and aggregagte pension calculated is less that Rs.500/-
Balaji L
From India, Tiruppur
17This the working with example
[b]Those who joined AFTER 15.11.1995[/b]
Here, the formula of calculation of pension is similar to that of a Govt. Employee. ie.,
Average Salary X Service
-------------
70
Maximum service for the calculation of service is 35 yrs. If a member has maximum service, pension will be:
Average Salary
-------------------
2
The Average Salary here refers is named as pensionable salary in the scheme. It is arrived by considering the average contributing salary preceeding 12 months from the date of exit
Eventhough you may be drawing Rs.20,000/- as salary per month, your company need to contribute only Rs. 541/- towards pension fund
Those who joined BEFORE 15.11.1995
Here, the formula of calculation of pension is:
Past Service benifit + Pensionable service benefit - Proportionate reduction
subject to minimum pension specified for each group.
( X - Rs.800 , Y - Rs.600, Z - Rs.500 )
These three categories of members are defined with reference to their age as on 16.11.1995 as follows:
„h X : those who have not attained 48 years
„h Y : those who have attained 48 years but less that 53 years ; and
„h Z : those who have attained 53 years or more.
Past service benefit:Portion of pension amount because of your service before 15.11.1995(For the calculation of this you have to refer 2 tables) Pensionable Service Benefit:Portion of pension amount because of your service after 15.11.1995(same as the calculation of pension who joined after 15.11.1995) Proportionate reduction: if the past service is less than 24 years and past service benifit + Pensionable service pension is less than Rs.500/-
For a member who joined EPF before 15.11.1995 have 3 components in Pension calculation:
(a)Past Service Benefit (b)Pensionable Service Benefit (c)Proportionate Reduction
For those who joined after 15.11.1995, only the 2nd component, viz., Pensionable Service Benefit is applicable
1. Past Service benefit: depends upon the wage as on 15.11.1995 and the service rendered in FPF '71 ( i.e. upto 15.11.1995 ) is as shown below: TABLE - A
Past Service Benefit in Rs. Benefit in Rs.
Wages as on 15.11.1995 is upto Rs.2500/ Wages as on 15.11.1995 is more than Rs.2500/-
Upto 11 years 80 85
More than 11 years but upto 15 years 95 105
More than 15 years but less than 20 years 120 135
Beyond 20 years 150 170
The above amount is the benefit payable on completion of 58 years of age as on 16.11.1995.
For the calculation of pension benefits before 58 years (if a member do not complete 58 years of age on 15.11.1995, his past service benefit will be increased by the below factor - Early pension cases ) the above benefit is multiplied by the TABLE - B factor to arrive at the past service benefit.
TABLE - B
If Years to 58 of age from 15.11.1995 is: then factor is:
less than 1 year 1.049
less than 2 years 1.154
less than 3 years 1.269
less than 4 years 1.396
less than 5 years 1.536
less than 6 years 1.689
less than 7 years 1.858
less than 8 years 2.044
less than 9 years 2.248
less than 10 years 2.473
less than 11 years 2.720
less than 12 years 2.992
less than 13 years 3.29
less than 14 years 3.621
less than 15 years 3.983
less than 16 years 4.381
less than 17 years 4.819
less than 18 years 5.301
less than 19 years 5.810
less than 20 years 6.414
less than 21 years 7.056
less than 22 years 7.761
less than 23 years 8.537
less than 24 years 9.390
2. Pensionable Service benefit=
pensionable salary X pen.service
---------------------------------------
70
subject to minimum of Rs.335, Rs. 438, Rs.635 for receiving early pension ( before 58 years ) for date of commencement of pension between 01/04/1993 and 15/11/2000, 16/11/2000 and 15/11/2005, 16/11/2005 respectively.
AND
subject to minimum of Rs.635, Rs.438, Rs.335 for receiving pension on or after 58 years for date of commencement of pension between 01/04/193 and 15/11/2000, 16/11/2000 and 15/11/2005 , 16/11/2005 respectively.
(If member has joined after 15.11.1995, only Pensionable Service Benefit is applicable)
3. Proportionate reduction: arises if the past service is less than 24 years and aggregagte pension calculated is less that Rs.500/-
Balaji L
From India, Tiruppur
The argument that maximum Pensionable Service is 35 yrs is wrong. If an employee renders 40 yrs service after 16.11.95, then his pensionable service will be 40+2=42 yrs.
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 as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 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 & 150 respectively. For Rs. 2500 & above this will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. In the case of those 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. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorised in to 3. 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory celing of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In case of 2nd, pensionable salary is Rs. 6500. In other two cases, pensionable salary will be the average of last twelve months. Also if pensionable service is 20 years & above 2 year's bonus will be given.
For details please see the web site :
http://epfindia.com <link updated to site home>
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
I shall insert Excel work sheet to calculate pension. Enter Date of Birth, Date of Join, Date of Seperation from Service, Salary on 16.11.95, Salary on Seperation from Service ( in compliance with the contribution to pension fund) and break in service before and after 16.11.95, if any in green colour column. The results will appear in yellow colour column. The red colour is for static information.
In case of any error or suggestion, please notice to me.
Abbas.P.S,
Secretary,
ITI Employees' Association,
ITI LTD, PALAKKAD - 678 623.
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
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 as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 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 & 150 respectively. For Rs. 2500 & above this will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. In the case of those 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. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorised in to 3. 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory celing of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In case of 2nd, pensionable salary is Rs. 6500. In other two cases, pensionable salary will be the average of last twelve months. Also if pensionable service is 20 years & above 2 year's bonus will be given.
For details please see the web site :
http://epfindia.com <link updated to site home>
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
I shall insert Excel work sheet to calculate pension. Enter Date of Birth, Date of Join, Date of Seperation from Service, Salary on 16.11.95, Salary on Seperation from Service ( in compliance with the contribution to pension fund) and break in service before and after 16.11.95, if any in green colour column. The results will appear in yellow colour column. The red colour is for static information.
In case of any error or suggestion, please notice to me.
Abbas.P.S,
Secretary,
ITI Employees' Association,
ITI LTD, PALAKKAD - 678 623.
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
My brother died after 2 years service with total salary 10,000 per month. Company applied for widow pension for the wife and kid, through the EPF scheme ,
I think 50% for wife & 25% of total pension for kid, but how do i calculate total pension.?
From Saudi Arabia, Dhahran
I think 50% for wife & 25% of total pension for kid, but how do i calculate total pension.?
From Saudi Arabia, Dhahran
Dear Surfingminds,
Either equivalent to member pension or widow pension as per Table C, whichever is higher will be given as pension in this case. Here as the service is below 10 years, member pension is not applicable. As per Table C, equivalent widow pension is Rs. 2051. In addition, the child (each, but two at a time) will get 25% of widow pension .i.e Rs. 513.
Abbas.P.S
From India, Bangalore
Either equivalent to member pension or widow pension as per Table C, whichever is higher will be given as pension in this case. Here as the service is below 10 years, member pension is not applicable. As per Table C, equivalent widow pension is Rs. 2051. In addition, the child (each, but two at a time) will get 25% of widow pension .i.e Rs. 513.
Abbas.P.S
From India, Bangalore
Hi Friends,
I am Suresh from Chennai and need your help on PF and Pension.
I would really appreciate if someone could help me out.
My current PF balance (Employer + Employee) is 2,39,617 and pension balance is 54,229.
It would be really helpful if some one can calculate the total amount for PF (EE +ER) and Pension @4% increase year on year.
I Plan to retire at the age of 55 years and my current age is 34 yrs.
Here is my current deduction from the PF account.
Employee contribution: 1,908
Employer contribution: 658
Pension Scheme: 1,250
Thanks a ton in advance
Suresh
From undefined, undefined
I am Suresh from Chennai and need your help on PF and Pension.
I would really appreciate if someone could help me out.
My current PF balance (Employer + Employee) is 2,39,617 and pension balance is 54,229.
It would be really helpful if some one can calculate the total amount for PF (EE +ER) and Pension @4% increase year on year.
I Plan to retire at the age of 55 years and my current age is 34 yrs.
Here is my current deduction from the PF account.
Employee contribution: 1,908
Employer contribution: 658
Pension Scheme: 1,250
Thanks a ton in advance
Suresh
From undefined, undefined
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