Here is no upper limit for eps
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This document summarizes the pension calculation process for Eps-95 pensions in India. Pension is calculated in two parts: past service before 16.11.95 and pensionable service after. Past service is divided into slabs based on years of service, and a monthly compensation amount is provided. This amount is multiplied by a factor depending on when the employee turns 58. Pensionable service uses a formula of pensionable salary multiplied by service divided by 70. Pensionable salary is categorized into three levels. The example provided calculates a total monthly pension of Rs. 2840 for an employee with past service of 9 years and pensionable service of 23 years.
Here is no upper limit for eps
- 1. here is no upper limit for Eps-95 pension. 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 : EPFO§ 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