The pension amount in PF is determined by the member's pensionable service and pensionable pay. The following EPS formula is used to compute the member's monthly pension amount:
Monthly Pension of a Member = Pensionable Service X Pensionable Salary / 70
The member's actual service time is considered pensionable service. When determining the pensionable service duration, service periods from many employers are put together. Every time the employee changes jobs, he must get the EPS Scheme Certificate and present it to the new employer. It is worth noting that after 20 years of service, the employee receives a two-year bonus.
If a member withdraws the EPS corpus before finishing the 10-year service time and joins another firm, he must restart contributing to the EPS account, and the service period will be reset to zero. The pensionable service duration is measured in months. The minimum term of pensionable service is six months. For example, if the total service duration is 8 years and 2 months, the pensionable service period is 8 years. If the service length is 8 years and 10 months, the pensionable service period is 9 years.
This is the member's average monthly salary over the past 60 months before leaving the Employees' Pension Scheme. If there are non-contributory periods in the past 60 months of work, the non-contributory days in the month will not be considered, and the employee will benefit from those days. For example, assuming the individual starts on the third of the month, his income of 28 days will be divided by each day's pay and multiplied by 30 to compute the total monthly payment for the month.
If the person's income is ₹15,000, the pay would be ₹14,000 for 28 days. However, the monthly pay evaluated for EPS would be ₹15,000 for 30 days. Every month, the maximum pensionable income is set at ₹15,000. Because the employer contributes 8.33% of this income to the employee's EPS account, the amount deposited in the employee's EPS account each month is:
8.33x₹15,000/100 = ₹1,250
In EPF Passbook, a member may see the amount accrued in his EPS account. The final column in the passbook reflects the EPS contribution placed by the employer into the member's account each month. After entering into the account using the UAN and password, the passbook may be obtained via the EPF Passbook page. In addition, you can take the aid of an online calculator for further assistance in calculating pensions after retirement.