The Employees’ Provident Fund Organisation (EPFO) recently introduced a pension calculator for workers covered under the Employees’ Pension Scheme (EPS) 1995. This calculator gives an illustration of the pension amount an employee may receive upon retirement. This article explains key details of the EPS calculator and how it works.
The EPS calculator can be used to get an idea of the pension amount for cases where the pension start date is on or after 01-04-2014.
“The benefits displayed are on wages up to the wage ceiling that is Rs 6500/- for up to 31-08-2014 and Rs 1500/- after that date,” EPFO says in a document explaining how to use the pension calculator.
The EPS calculator is available on the EPFO website. If you want to know how much pension you may get, following are some inputs that you need to provide for calculation:
1. Date of birth: The member should have completed 58 years of age on or after 01-04-2011. Therefore the date of birth should be on or after 01-04-1953 for using this calculator.
2. Service period: Date of joining and date of exit from service
According to the EPFO document, the date of joining service cannot be prior to 16-11-1995 and the date of exit cannot be a date after the superannuation date.
3. NCP 1 and NCP 2 days: Members have to provide details of the non-contributory period (NCP) of service. NCP is the number of days for which the member did not get wages and also the number of days for which the member’s EPS contribution was not paid by the employer.
NCP-1 is up to 31-08-2014 and NCP 2 is after 31-08-2014.
EPFO says that members can add multiple service period if he has worked in different established.
4. Pension opted date: If the member has crossed 58 years age then the pension start date will be displayed by the system. However, if the member has not crossed the age of 58 years, then he can enter a date from date of exit/ date of attaining 50 years age till the date of use of the calculator.
5. Pensionable salary: Pensionable salary is the average wages for the last 12 months of the pension start date is one or before 31-08-2014 and 60 months if the pension start date is after that date.
As per the EPFO rule, there is a wage ceiling of Rs 6500 up to 31-08-214 and upto Rs 15,000 after that date.
So for using this calculator, the average salary should be upto Rs 15,000 from 01-09-2014 and upto Rs 6500 till 31-08-2013.
Once you enter all the data, the calculator will display the amount monthly or yearly pension.
“If the pension amount is less than Rs 1000/- the member will be eligible for a minimum pension of Rs 1000/- w.e.f. 01-09-2014 or pension start date whichever is later,” EPFO says.
“In case of early pension, the reduction amount of the pension @4% per annum will be deducted from the early pension for each year from pension fixed at age of 58 years till the age (minimum 50 years) from where early pension opted,” it adds.
Example: Let’s assume the date of birth of a member is 12-10-1964. He joins service on 12-10-1996 and retires on 11-10-2022 with a pensionable salary of Rs 15,000 and with no NCP days. His pension start date is 11-11-2022. After putting all these inputs, the calculator shows this member would be eligible for a monthly pension of Rs 3401.