How to Estimate Your EPF Pension

Many people think how much more? Calculate what will happen. That’s the money! But after retirement, Indus has to be built with a point.

How to Estimate Your EPF Pension
How to Estimate Your EPF Pension

Many People Think How Much More?

Calculate what will happen. That’s the money! But after retirement, Indus has to be built with a point. The money that you get in your hand, when you invest it, you have to keep it in different projects to cover the running cost of the day. And that income will also come but little by little. And your monthly income will be created by bringing the income of all sectors in one place. So even if it seems less now, it will become more important after retirement. Giving this all a quick read, it seems we are pretty much in agreement.

So let’s start with what is meant by income in EPF pension figure. Combining your basic and dearness allowance is the basis of your pensionable income. In case of pension, the upper limit of this income is 15 thousand rupees.

If 12% of your monthly salary is deducted in PF sector, then your office will also deposit the same amount in your PF account. Your money will accumulate. But 7.33 percent of the money that will be credited to your account from the office will be credited to your pension fund, which will never exceed Rs. 1,250 per month. This figure was earlier 541 rupees.

Keep in mind that you are not paying anything for pension, the money in this sector is going from your office. Your company is joining your savings in tandem with you and your pension fund is being created from the money deposited by your company. And the government is giving your pension fund 1.18 percent of your basic and DA combined income or 184 rupees with an income of 15 thousand rupees. However, if your average income is more than 15 thousand rupees, but the government will not give this money.

Now let’s come to numbers. Your pension will be calculated based on the salary you received on your retirement day. Multiply that salary (Basic + DA) by 15 thousand rupees with the number of years you have worked and were a member of PF. Suppose you have been a member of the pension scheme for 35 years. If so

15,000×35 = 52,500

This time divide this number by the common divisor 70.

52,500 / 60 = 8,500

This 6,500 will be your pension if you have worked for 35 years.

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