If employer's contribution to EPF was INR 427628 in 14 years service what should have been the pensionable salary ? what would be monthly pension? As per rules employers EPF contribution 1/3 goes to EPF and 2/3 goes to EPS. Pension calculation is pensionable salary X 70 divided by number of years in the scheme. more
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THE EMPLOYEE'S PENSION SCHEME, 1995 11. Determination of Pensionable Salary. (1) Pensionable salary shall be average monthly pay drawn 17[in any manner including on piece-rate basis] during the contributory period of service in the span of 12 months preceding the date of exit from the membership of the Employees' Pension Fund. 0[Provided that if at the option of the employer and employee, contribution paid on salary exceeding 21[Rupees six thousand and five hundred /Rs.6500/-] per month from the date of commencement of this Scheme or from the date salary exceeds 22[Rupees six thousand and five hundred /Rs.6500/-] whichever is later, and 8.33 per cent share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such higher salary.] 20 20. Duties of Employers. (1) Every employer shall send to the Commissioner within three months of the commencement of this Scheme, a consolidated return of the employees entitled to become members of the Employees' Pension Fund showing the basic wage, retaining allowance, if any, and dearness allowance including the cash value of any food concession paid to each of such employees; more
Jun 29
Drf Saab, when the scheme was introduced on 16.11.1995 the pensionable salary was Rs. 5000/- From June 2001 onwards it was revised to Rs. 6500/- and April 2014 onwards it was revised to Rs. 15000/- The pension calculation formula is "Pensionable salary x Pensionable Service divided by 70 and not pensionable salary x 70. Supposed somebody starts employment in 2014 he will get pension at the Rate of 215/- multiplied by pensionable service period (no. of years of pensionable service). Suppose some put up a pensionable service of 15 years, he would get 2893/- per month as pension. if he opts for computation he would get Rs 1925/- per month. Hope it would be clear now more
Jun 26
Calculation is correct. However recently the EPF ceiling has been enhanced to Rs.15000/- basis. But is not applicable to you. more
Jun 26
Pensionable salary is calculated on your contribution i.e.8.33 or Rs. 541/-per month up to a ceiling of Rs. 6500/ as your salary (Basic+DA) until 2014, and you will get not more than 1200/ per month as per EPF1995 scheme if U retire before 2014. As I have said Indian Rulers are enjoying the hard earned money of innocent/poor Industrial workers. more
Jun 26
