This is how EPFO's calculator calculates pension on pro-rata basis

Under the old EPS pension scheme, basic salary cap is taken to be Rs 6,500 until Aug 31, 2014 and Rs 15,000 thereafter

Sanjay Kumar Singh New Delhi
Photo: Shutterstock

Photo: Shutterstock

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A reader named K K Kulshrestha recently pointed out that the calculations being shown in some media reports for the pension that will be paid out by the Employee Pension Scheme (EPS) are on the higher side. In reality, he says, the pension that will be paid out will be lower, as demonstrated by the pension calculator on the Employees’ Provident Fund Organisation’s (PFO) website. Let us examine if his contention is indeed true.
Let us explain this issue with the help of an example. Suppose that Mr A (born on April 1, 1972) begins working on April 1, 2000. He will retire on March 31, 2030. His basic salary at the time of joining was Rs 15,000.
As you are aware, the pension is calculated as follows:

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First Published: May 16 2023 | 11:48 AM IST

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