Adani Enterp. 2491.50↓-142.20(-5.40%)
Adani Ports 718.40↓-15.65(-2.13%)
Apollo Hospitals 4550.00↓-0.40(-0.01%)
Asian Paints 3112.25↓-8.35(-0.27%)
Axis Bank 917.30↑1.15(0.13%)
B P C L 363.85↓-2.75(-0.75%)
Bajaj Auto 4523.25↑25.15(0.56%)
Bajaj Finance 6796.10↑15.55(0.23%)
Bajaj Finserv 1433.80↓-3.45(-0.24%)
Bharti Airtel 801.60↑1.65(0.21%)
Britannia Inds. 4515.00↓-6.65(-0.15%)
Cipla 935.55↑5.15(0.55%)
Coal India 241.20↑1.90(0.79%)
Divi's Lab. 3381.50↓-4.30(-0.13%)
Dr Reddy's Labs 4515.00↑54.45(1.22%)
Eicher Motors 3622.45↑20.85(0.58%)
Grasim Inds 1703.10↑5.15(0.30%)
H D F C 2674.35↓-31.50(-1.16%)
HCL Technologies 1111.75↑4.40(0.40%)
HDFC Bank 1619.40↓-17.80(-1.09%)
HDFC Life Insur. 565.50↑2.80(0.50%)
Hero Motocorp 2739.15↑28.70(1.06%)
Hind. Unilever 2614.60↓-13.70(-0.52%)
Hindalco Inds. 409.50↓-0.80(-0.19%)
ICICI Bank 949.15↓-4.25(-0.45%)
IndusInd Bank 1274.50↑14.30(1.13%)
Infosys 1299.15↓-0.90(-0.07%)
ITC 431.50↑2.35(0.55%)
JSW Steel 700.20↓-3.90(-0.55%)
Kotak Mah. Bank 1908.05↓-13.45(-0.70%)
Larsen & Toubro 2186.25↓-11.40(-0.52%)
M & M 1277.40↑8.85(0.70%)
Maruti Suzuki 9275.00↑74.30(0.81%)
Nestle India 21326.45↓-77.25(-0.36%)
NTPC 174.70↑0.55(0.32%)
O N G C 166.00↑1.00(0.61%)
Power Grid Corpn 236.00↑1.90(0.81%)
Reliance Industr 2444.80↓-9.75(-0.40%)
SBI Life Insuran 1175.45↑9.85(0.85%)
St Bk of India 584.35↑2.75(0.47%)
Sun Pharma.Inds. 951.10↑19.50(2.09%)
Tata Consumer 771.95↑1.90(0.25%)
Tata Motors 522.70↓-5.80(-1.10%)
Tata Steel 105.40↓-0.20(-0.19%)
TCS 3300.95↑3.90(0.12%)
Tech Mahindra 1100.05↑9.55(0.88%)
Titan Company 2720.35↑36.90(1.38%)
UltraTech Cem. 7655.80↑1.55(0.02%)
UPL 682.15↑1.50(0.22%)
Wipro 399.65↑2.00(0.50%)

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

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Photo: Shutterstock

3 min read Last Updated : May 16 2023 | 11:49 AM IST

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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: