HI ALL, Sir please tell me that whan a employee is elgible for pension ane when he takes all benifits of it. thanks & Regards Jagjeet
From India, Bhatinda
26From India, Bhatinda
Dear Jagjeet & Nilesh,
1.For pension eligibility, minimum ten years service in PF is required.
2. On completion of 58 years of age, superannuation pension is eligible unconditionally
3. Even after completion of 50 years' age, pension is eligible under the following conditions.
i. He should not be continued in a PF applicale job
ii. For below 58 years of age, 4% will be reduced on pension for each year.
Abbas.P.S
From India, Bangalore
1.For pension eligibility, minimum ten years service in PF is required.
2. On completion of 58 years of age, superannuation pension is eligible unconditionally
3. Even after completion of 50 years' age, pension is eligible under the following conditions.
i. He should not be continued in a PF applicale job
ii. For below 58 years of age, 4% will be reduced on pension for each year.
Abbas.P.S
From India, Bangalore
Dear Sir,
Thanks for your reply.
I have one more question
1. A employee worked in other company in 5 years and he left the job
he does not withdrawal his pension amount from the previous account.
2. Now he worked in our orgnization last 6 years, and he transfer his previous pension in his current PF account. now he wants to left the job and withdrawal all the amount.
3. Please tell me that he is eligible for to take pension .
4. his age is 55 years.
with regards
Jagjeet Singh
From India, Bhatinda
Thanks for your reply.
I have one more question
1. A employee worked in other company in 5 years and he left the job
he does not withdrawal his pension amount from the previous account.
2. Now he worked in our orgnization last 6 years, and he transfer his previous pension in his current PF account. now he wants to left the job and withdrawal all the amount.
3. Please tell me that he is eligible for to take pension .
4. his age is 55 years.
with regards
Jagjeet Singh
From India, Bhatinda
Dear Jagjeet,
As you have mentioned that the employee is having a past service of 5 years & present service of 6 years, together there is a sevice of 11 years. As he has crossed an age of 50 years, right now he is eligible to draw pension.
If you provide his Date of Birth, Date of Join & Date of Exit from both services, average salary of last 12 months, details of break in service if any etc. I shall inform the pension amount both at present as well as at the age of 58 years.
Abbas
From India, Bangalore
As you have mentioned that the employee is having a past service of 5 years & present service of 6 years, together there is a sevice of 11 years. As he has crossed an age of 50 years, right now he is eligible to draw pension.
If you provide his Date of Birth, Date of Join & Date of Exit from both services, average salary of last 12 months, details of break in service if any etc. I shall inform the pension amount both at present as well as at the age of 58 years.
Abbas
From India, Bangalore
Dear Jagjeet,
Regarding PF accumulation, the interest will be monthly accumulated and rounded to nearest rupee; seperately for both employee & employer contribution. I shall insert an excel sheet. You extend the rows as per your requirement and enter monthly applicable salary & annual interest rate.
Details of interest rates are
1. From 1989-90 to 1999-00 - 12%
2. 2000-01 - 11%
3. 2001-02 to 2004-05 - 9.5%
4. 2005-06 onwards - 8.5%
Note : The Excel sheet is prepared on the basis of 8.33% contribution to EPS-95. This is applicable to w.e.f 16.11.95. Also please see that the ceiling limit from 16.11.95 to 31.5.01 is Rs. 5000/- & from 1.6.01 is Rs. 6500/. Enter the ceiling limit, interest rate & salary applicable.
From India, Bangalore
Regarding PF accumulation, the interest will be monthly accumulated and rounded to nearest rupee; seperately for both employee & employer contribution. I shall insert an excel sheet. You extend the rows as per your requirement and enter monthly applicable salary & annual interest rate.
Details of interest rates are
1. From 1989-90 to 1999-00 - 12%
2. 2000-01 - 11%
3. 2001-02 to 2004-05 - 9.5%
4. 2005-06 onwards - 8.5%
Note : The Excel sheet is prepared on the basis of 8.33% contribution to EPS-95. This is applicable to w.e.f 16.11.95. Also please see that the ceiling limit from 16.11.95 to 31.5.01 is Rs. 5000/- & from 1.6.01 is Rs. 6500/. Enter the ceiling limit, interest rate & salary applicable.
From India, Bangalore
Regarding 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 :
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
Besides the above method calculation there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorised into three.
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall a give a brief on third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 yrs or more service. If it is less than 24 yrs, this will be reduced in proportionate (amount x actual service / 24). However this amount will be subject to a minimun of Rs. 450.
Now regarding your example. For ten years service pension amount is Rs. 929. Now it is Rs. 789 & after completion of 55 years (wef 20.9.2010) it will be Rs. 822.
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
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
Besides the above method calculation there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorised into three.
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall a give a brief on third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 yrs or more service. If it is less than 24 yrs, this will be reduced in proportionate (amount x actual service / 24). However this amount will be subject to a minimun of Rs. 450.
Now regarding your example. For ten years service pension amount is Rs. 929. Now it is Rs. 789 & after completion of 55 years (wef 20.9.2010) it will be Rs. 822.
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
From India, Bangalore
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