EPS pensionable salary and pension query

Dear Expert

Please clarify  on EPS  :-

I see Pension contribution in the PF passbook. ..  Does this mean that there will be a pension?

Is this the formula for calculation ?

Monthly pension amount= (Pensionable salary X pensionable service) /70."

 

1. What is pensionable salary in the private industry?.  Is this just the monthly basic salary ?

2. Is there a CAP on the pensionable salary that is used in the formula? What is it ?

3. What is the pensionable salary in the following scenario :-

   Job-1 ( 1990 to 1992 ) :  Monthly basic at the time of leaving : Rs.10000

  Job-2 ( 1992 to 2014) :  Monthly basic at the time of leaving : Rs.20000

 Job-3 ( 2015 to 2020) : Monthly basic at the time of leaving : Rs.21000  ( aged : 58)

Job-4 ( 2021 to 2023) : Monthly basic at the time of leaving : Rs.12000

Does the last basic salary, which is lower than the salaries from previous jobs, negatively impact the monthly pension amount ?

Thank you

Replies (1)
  • Pensionable salary = average basic + DA in last 5 years per job, capped at Rs. 15,000.

  • Total pension = sum over all jobs: (pensionable salary × service years) / 70.

  • Lower salary at last job won’t negatively affect pension if earlier service and salaries were higher.

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