Getting 5000 Rs monthly pension amount may support the employees to some extent after their retirement. I know in today’s high cost of living society, 5000 Rs is not a big amount but for a normal employee who has some savings and own house can lead his life happily with this pension amount. But at present, The EPFO has a limit of monthly pension amount as 1000 RS.
It means after calculating the monthly pension of an employee if it falls below 1000 Rs then they will get a minimum pension of 1000 Rs under the EPS scheme.
But it is not at all sufficient for a common man to live in this society, and that too after retirement. The main aim of the EPF pension scheme is to ensure social responsibility to the EPF members after their retirement. So we all are hoping to hear the good news regarding pension hike by the central government.
If you are already contributing to PF then the below calculation will help you to know how much pension contribution and service period pensioner needs, to get a monthly pension of Rs 5000 Rs after the retirement i.e 58 yrs of age.
EPF Pension 5000 Rs Calculation
The formula to calculate monthly pension after retirement is 58 years is = (pensionable salary X service period) / 70
Here the pensionable salary means the average basic salary + Dearness allowances drawn for the last 12 months. And the service period means the number of years the employee contributed to the EPF pension scheme.
Even though the employee gets a pensionable salary of more than 15000 Rs still we need to consider only 15ooo RS because it is the statutory limit to calculate PF and pension.
So now with this 15000 Rs pensionable salary we need to find how many years employee needs to contribute for PF to get a monthly pension of 5000 Rs after retirement. I have done several calculations and I find that if employees possess 24 yrs of pensionable service then they will get a monthly pension of 5142 Rs after retirement.
= (15000 X 24) / 70 = 5142 Rs.
But do you know every EPF member will get a bonus service of 2 years when they work for 20 years, so if an employee works for 22 years then another 2 years will be added to his service.
Finally to get a monthly EPF pension of 5000 Rs EPF members need to have a minimum 22 years of pensionable service with 15000 Rs basic wage plus dearness allowances (pensionable salary).