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EPF Pension Calculation: What's the Formula?

Milind

Milind Vadjikar  |157 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 12, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Camilo Question by Camilo on Nov 12, 2023Hindi
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What is the formula for calculating pension from epfo

Ans: EPS = Average Salary x Pensionable Service/70

(15000X35)÷70=7500
The average salary is the basic salary+DA(Max 15K) of the employee over a period of 60 months prior to retirement. Pensionable service is the total number of years worked(Max 35 years).

Thie minimum and maximum pension that you can receive through EPS is subject to limit of 1K to 7.5K per month
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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