{"id":913,"date":"2011-05-13T06:18:55","date_gmt":"2011-05-13T06:18:55","guid":{"rendered":"http:\/\/www.yourhrworld.com\/formats\/?p=913"},"modified":"2011-05-13T06:18:55","modified_gmt":"2011-05-13T06:18:55","slug":"working-of-pension-scheme-in-private-sector","status":"publish","type":"post","link":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/","title":{"rendered":"Working of Pension Scheme in Private Sector"},"content":{"rendered":"<p>There is no upper limit for <strong>Eps-95 pension.<\/strong> For pension calculation, the  service will be taken into 2 parts. Service before 16.11.95 and service  w.e.f 16.11.95. The first one is called as past service and latter one  as pensionable service. Past service is divided into 4 slabs. Service  upto 11 years, 12 to 15 years, 16 to 19 years and 20 &amp; above. If the  salary on 16.11.95 is below Rs. 2500, the monthly compensation will be  Rs. 80, 95, 120 &amp; 150 respectively. For Rs. 2500 &amp; above this  will be Rs. 85, 105, 135 &amp; 170. This amount is for those who attain  58 years on 16.11.95. In the case of those attain 58 years after  16.11.95, the above compensation will be multiplied by a factor  stipulated in table B, according to the difference between 16.11.95 and  the date of completion of 58 years.<\/p><div class=\"69eb924294c115e6505da44099e8df92\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script type=\"text\/javascript\"><!--\r\ngoogle_ad_client = \"pub-0867779017855679\";\r\n\/* 300x250, created 4\/20\/11 *\/\r\ngoogle_ad_slot = \"1035864135\";\r\ngoogle_ad_width = 300;\r\ngoogle_ad_height = 250;\r\n\/\/-->\r\n<\/script>\r\n<script type=\"text\/javascript\"\r\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\r\n<\/script>\n<\/div>\n\n<p>For pensionable service there is a formula to calculate pension. It is  Pensionable Salary x Pensionable Service \/ 70. Pensionable salary can be  categorised in to 3. 1) Below Rs. 6500. 2) Rs. 6500 &amp; above, but  contribution on statutory celing of Rs. 6500. 3) Above Rs. 6500 &amp;  opted to contribute on actual salary. In case of 2nd, pensionable salary  is Rs. 6500. In other two cases, pensionable salary will be the average  of last twelve months. Also if pensionable service is 20 years &amp;  above 2 year&#8217;s bonus will be given.<\/p>\n<p><strong>For details please see the web site :<\/strong><br \/>\n<a href=\"http:\/\/epfindia.com\/EPS95_Updated.htm\" target=\"_blank\"><strong>EPFO<\/strong><\/a><\/p>\n<p>One example I shall quote.<\/p>\n<p>Date of Birth &#8211; 2.1.1961<br \/>\nDate of join &#8211; 23.2.1987<br \/>\nSalary on 16.11.95 &#8211; Rs. 2500 &amp; above<br \/>\nSalary on completion of 58 years on 1.1.2019 &#8211; Rs. 6500 (Statutory Ceiling)<\/p>\n<p>Past Service &#8211; 8 yr 9 m (approx) rounded to 9 years<br \/>\nCompensation &#8211; Rs. 85<br \/>\nFactor as per Table B (for less than 24 years, i.e the difference between 16.11.95 &amp; 1.1.2019) &#8211; 6.102<br \/>\n(This can be calculated as 1.08 to the power of 24 &#8211; 0.5, correct to 3 decimals)<br \/>\nPast Service Benefit &#8211; 85 x 6.102 = Rs. 519 &#8211; (A)<\/p>\n<p>Pensionable Service &#8211; 23 years<br \/>\nBonus (Service is 20 &amp; above) &#8211; 2<br \/>\nPensionable Salary &#8211; Rs. 6500<br \/>\nPensionable Benefit &#8211; 6500 x 25 \/ 70 = 2321 &#8211; (B)<\/p>\n<p>Total Pension &#8211; (A) + (B) = Rs. 2840<\/p>\n<p>Besides the above method calculation there will be a minimum for those  who have service before 16.11.95. In the EPS-95, they are categorized  into three.<br \/>\n1. Date of commencement of Pension before 16.11.2000<br \/>\n2. Date of commencement of Pension between 16.11.2000 &amp; 16.11.2005<br \/>\n3. Date of commencement of Pension after 16.11.2005<\/p>\n<p>As the first two categories are already over, I shall a give a brief on third.<\/p>\n<p>Pensionable benefit (minimum) of Rs. 635 and Past service benefit as  mentioned above, subject to a minimum of Rs. 800. This amount is for 24  yrs or more service. If it is less than 24 yrs, this will be reduced in  proportionate (amount x actual service \/ 24). However this amount will  be subject to a minimun of Rs. 450.<\/p>\n<p>I shall insert Excel work sheet to calculate pension. Enter Date of  Birth, Date of Join, Date of Seperation from Service, Salary on  16.11.95, Salary on Seperation from Service ( in compliance with the  contribution to pension fund) and break in service before and after  16.11.95, if any in green colour column. The results will appear in  yellow colour column. The red colour is for static information.<\/p>\n<p><strong><a href=\"https:\/\/www.yourhrworld.com\/formats\/wp-content\/uploads\/2011\/05\/EPF-Pension.xls\">Click Here To Download EPF Pension<\/a><\/strong><\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>There is no upper limit for Eps-95 pension. For pension calculation, the service will be taken into 2 parts. Service before 16.11.95 and service w.e.f 16.11.95. The first one is called as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 11 years, 12 to 15 years, 16 to 19 years and 20 &amp; above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 &amp; 150 respectively. For Rs. 2500 &amp; above this will be Rs. 85, 105, 135 &amp; 170. This amount<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[242],"class_list":["post-913","post","type-post","status-publish","format-standard","hentry","category-hr","tag-pension-scheme"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Working of Pension Scheme in Private Sector - HR Letter Formats<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Working of Pension Scheme in Private Sector - HR Letter Formats\" \/>\n<meta property=\"og:description\" content=\"There is no upper limit for Eps-95 pension. For pension calculation, the service will be taken into 2 parts. Service before 16.11.95 and service w.e.f 16.11.95. The first one is called as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 11 years, 12 to 15 years, 16 to 19 years and 20 &amp; above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 &amp; 150 respectively. For Rs. 2500 &amp; above this will be Rs. 85, 105, 135 &amp; 170. This amount\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/\" \/>\n<meta property=\"og:site_name\" content=\"HR Letter Formats\" \/>\n<meta property=\"article:published_time\" content=\"2011-05-13T06:18:55+00:00\" \/>\n<meta name=\"author\" content=\"Hrformats\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hrformats\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/\"},\"author\":{\"name\":\"Hrformats\",\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/#\\\/schema\\\/person\\\/12e40c15a77b1929a013a8c83de187ee\"},\"headline\":\"Working of Pension Scheme in Private Sector\",\"datePublished\":\"2011-05-13T06:18:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/\"},\"wordCount\":503,\"commentCount\":4,\"keywords\":[\"Pension Scheme\"],\"articleSection\":[\"HR\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/\",\"url\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/\",\"name\":\"Working of Pension Scheme in Private Sector - HR Letter Formats\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/#website\"},\"datePublished\":\"2011-05-13T06:18:55+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/#\\\/schema\\\/person\\\/12e40c15a77b1929a013a8c83de187ee\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/hr\\\/working-of-pension-scheme-in-private-sector\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Working of Pension Scheme in Private Sector\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/#website\",\"url\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/\",\"name\":\"HR Letter Formats\",\"description\":\"Free Human Resource Forms, Formats &amp; Questionnaires\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/#\\\/schema\\\/person\\\/12e40c15a77b1929a013a8c83de187ee\",\"name\":\"Hrformats\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2ee0a9b5831e6c2a1d7162d4eb62c22eb1c468a34c4fdcac6e7b5df7fcde2302?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2ee0a9b5831e6c2a1d7162d4eb62c22eb1c468a34c4fdcac6e7b5df7fcde2302?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2ee0a9b5831e6c2a1d7162d4eb62c22eb1c468a34c4fdcac6e7b5df7fcde2302?s=96&d=mm&r=g\",\"caption\":\"Hrformats\"},\"url\":\"https:\\\/\\\/www.yourhrworld.com\\\/formats\\\/author\\\/hrformats\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Working of Pension Scheme in Private Sector - HR Letter Formats","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/","og_locale":"en_US","og_type":"article","og_title":"Working of Pension Scheme in Private Sector - HR Letter Formats","og_description":"There is no upper limit for Eps-95 pension. For pension calculation, the service will be taken into 2 parts. Service before 16.11.95 and service w.e.f 16.11.95. The first one is called as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 11 years, 12 to 15 years, 16 to 19 years and 20 &amp; above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 &amp; 150 respectively. For Rs. 2500 &amp; above this will be Rs. 85, 105, 135 &amp; 170. This amount","og_url":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/","og_site_name":"HR Letter Formats","article_published_time":"2011-05-13T06:18:55+00:00","author":"Hrformats","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Hrformats","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/#article","isPartOf":{"@id":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/"},"author":{"name":"Hrformats","@id":"https:\/\/www.yourhrworld.com\/formats\/#\/schema\/person\/12e40c15a77b1929a013a8c83de187ee"},"headline":"Working of Pension Scheme in Private Sector","datePublished":"2011-05-13T06:18:55+00:00","mainEntityOfPage":{"@id":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/"},"wordCount":503,"commentCount":4,"keywords":["Pension Scheme"],"articleSection":["HR"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/","url":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/","name":"Working of Pension Scheme in Private Sector - HR Letter Formats","isPartOf":{"@id":"https:\/\/www.yourhrworld.com\/formats\/#website"},"datePublished":"2011-05-13T06:18:55+00:00","author":{"@id":"https:\/\/www.yourhrworld.com\/formats\/#\/schema\/person\/12e40c15a77b1929a013a8c83de187ee"},"breadcrumb":{"@id":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.yourhrworld.com\/formats\/hr\/working-of-pension-scheme-in-private-sector\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.yourhrworld.com\/formats\/"},{"@type":"ListItem","position":2,"name":"Working of Pension Scheme in Private Sector"}]},{"@type":"WebSite","@id":"https:\/\/www.yourhrworld.com\/formats\/#website","url":"https:\/\/www.yourhrworld.com\/formats\/","name":"HR Letter Formats","description":"Free Human Resource Forms, Formats &amp; Questionnaires","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.yourhrworld.com\/formats\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.yourhrworld.com\/formats\/#\/schema\/person\/12e40c15a77b1929a013a8c83de187ee","name":"Hrformats","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/2ee0a9b5831e6c2a1d7162d4eb62c22eb1c468a34c4fdcac6e7b5df7fcde2302?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/2ee0a9b5831e6c2a1d7162d4eb62c22eb1c468a34c4fdcac6e7b5df7fcde2302?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2ee0a9b5831e6c2a1d7162d4eb62c22eb1c468a34c4fdcac6e7b5df7fcde2302?s=96&d=mm&r=g","caption":"Hrformats"},"url":"https:\/\/www.yourhrworld.com\/formats\/author\/hrformats\/"}]}},"_links":{"self":[{"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/posts\/913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/comments?post=913"}],"version-history":[{"count":0,"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/posts\/913\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/media?parent=913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/categories?post=913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yourhrworld.com\/formats\/wp-json\/wp\/v2\/tags?post=913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}