Dear Members,
Namashkar!
I want to know that, what is the calculation of Pension of PF.
Anjay Kumar
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Contributions as below:
| EMPLOYEE PF CONTRIBUTION | 12% OF WAGES |
| EMPLOYER PENSION CONTRIBUTION | 8.33% OF WAGES; MAX UPTO 1250 |
| EMPLOYER PF CONTRIBUTION | 12% OF WAGES MINUS EMPLOYER PENSION CONTRIBUTION |
| EMPLOYER EDLI CONTRIBUTION | 0.5% OF WAGES; MAX RS 75 |
| EMPLOYER ADMIN CHARGES | 0.5% OF WAGES |
The formula to calculate the EPS pension is as follows: Monthly pension amount= (Pensionable salary X pensionable service) /70
What if a person has not rendered 10 years of contributory service?
When a person has not rendered 10 years of pensionable service on the date of exit or on attaining the age of 58 years, then he is entitled for a lump sum withdrawal or he may opt to receive scheme certificate provided on the date of exit if he has not completed 58 years. The quantum of lump-sum withdrawal depends on the number of years of contribution and is indicated in Table below.
| Year of Service | Proportion of Wages at Exit |
|---|---|
| 1 | 1.02 |
| 2 | 1.99 |
| 3 | 2.98 |
| 4 | 3.99 |
| 5 | 5.02 |
| 6 | 6.07 |
| 7 | 7.13 |
| 8 | 8.22 |
| 9 | 8.33 |
The scheme also allows one to receive early pension from the age of 50 years or to defer the pension till the age of 60 years. However, when a member has opted to receive early pension or defer pension, the pension amount will get discounted or increased by 4% for every incomplete year for 58 years or for every year beyond 58 years as the case may be.
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