Entitlement of Pension under Employee Pension Scheme, 1995

Employee Pension Scheme

Posted by on July 30, 2016

Calculation of Pension

 

A member is entitled to Superannuation pension if he/she has rendered eligible service of at least 20 years and retires after attaining age of 58 years.

A member is entitled to Retirement pension if he/she has rendered eligible service of at least 20 years and retires or otherwise ceases to be in the employment before attaining age of 58 years.

A member is entitled to Short Service pension if he/she has rendered eligible service between 10 and 20 years.

 

Eligible Service:

New Entrant: Actual service rounded off to the nearest year. Less than six months shall be ignore and over six months will be rounded up to one year for calculation purpose

Seasonal Service: Employees employed seasonally in any establishment shall be treated full year even if the actual service is less than a year

Existing Member: If an employee has already been enrolled into the EPF aggregate of past service and actual service rounded off to the nearest year will be considered for the eligible service

 

Pensionable Salary

In August 2014, the government had made two major amendments to the Employees’ Pension Scheme wherein the minimum pension was fixed at Rs.1,000 per month and the ceiling for the purpose of pensionable salary was raised from Rs.6500 to Rs.15,000

 

(1) Salary that is below Rs. 15000
(2) Salary that is Rs. 15000 and above but contribution of statutory calling is Rs. 15000
(3) Salary that is above Rs.15000 and opted to contribute on actual salary.

 

Pensionable Formula:

Pensionable salary*pensionable service/70

Related Acts:

(1) Employees Provident Fund Scheme, 1952
(2) Employees Deposit Linked Insurance Scheme, 1976,
(3) Employees Pension Scheme, 1995.

 

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