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Pension Formula:
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The Provident Fund Pension calculation determines the monthly pension amount for employees covered under the Employees' Pension Scheme in India. It is based on the average salary of the last 60 months and the total years of service.
The calculator uses the standard pension formula:
Where:
Explanation: The formula calculates the monthly pension amount by multiplying the average salary with years of service and dividing by 70, which represents the standard pension calculation divisor.
Details: Accurate pension calculation is essential for retirement planning, financial security, and understanding post-retirement benefits under the Employees' Pension Scheme.
Tips: Enter the average salary of the last 60 months in INR and the total years of service. Both values must be positive numbers (salary > 0, service between 1-60 years).
Q1: What is the minimum service period for pension eligibility?
A: Generally, a minimum of 10 years of service is required to be eligible for pension under the Employees' Pension Scheme.
Q2: Is there a maximum limit on pension amount?
A: Yes, there is usually a maximum pension limit based on the salary ceiling defined by the pension scheme regulations.
Q3: How is average salary calculated?
A: Average salary is typically calculated as the average of the last 60 months' basic salary plus dearness allowance.
Q4: Can pension be calculated for partial years of service?
A: Yes, service period can include fractional years (e.g., 20.5 years) for more precise calculation.
Q5: Are there any other factors affecting pension amount?
A: Additional factors may include retirement age, scheme amendments, and specific employer policies that may affect the final pension amount.