EPF Pension Calculation Process in Telugu: EPF members who contribute minimum 10 years for EPF pension will become eligible for EPF monthly pension amount after retirement. This monthly pension will be paid to them after 58 years of their age. EPF pension calculation formula : (Last 5 yrs avg salary x Total service period)/70...(read more)
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EPF Pension Calculation After Retirement The Employees Provident Fund (EPF) is a retirement savings scheme introduced by the government of India for the benefit of employees. The EPF scheme offers financial security to individuals after their retirement. Upon retiring, employees can choose to withdraw their EPF savings or opt for a monthly pension. Calculating the EPF pension after retirement involves various factors. The amount of pension an individual receives is dependent on the number of years of service and the salary earned during their employment. The EPF pension calculation is based on a formula that takes into consideration the average salary and the number of years of service. To calculate the monthly EPF pension amount, the average salary is calculated based on the last 12 months of service. This average salary is capped at a certain limit, which is determined by the government and updated periodically. Currently, the limit is capped at Rs. 15,000 per month. If an employee's monthly salary during the last 12 months exceeds the cap, only Rs. 15,000 will be considered for the calculation. The formula used to calculate the monthly EPF pension is as follows: (Pensionable Salary/70) x Service Period The pensionable salary is the average salary determined as mentioned above. The service period is the number of years the individual has contributed to the EPF scheme. The 70 in the formula represents the divisor set by the government. For example, let's consider an individual who has an average salary of Rs. 12,000 per month during their last 12 months of service and has contributed to the EPF scheme for 30 years. Using the above formula, the EPF pension calculation would be: (12,000/70) x 30 = Rs. 5142.86 Therefore, this individual would be eligible to receive a monthly EPF pension of approximately Rs. 5142.86. It is important to note that the maximum pension amount that can be received under the EPF scheme is capped at a certain limit. As of 2021, the maximum monthly pension amount is Rs. 7,500. However, individuals who were already receiving a pension exceeding this amount before the cap was implemented are not affected. Additionally, the EPF scheme allows for the commutation of a portion of the pension. This means individuals can choose to receive a lump sum amount instead of the monthly pension. The commutation factor is determined based on the individual's age at the time of retirement. In conclusion, the EPF pension calculation after retirement is an important aspect of financial planning. Understanding the factors that influence the calculation and the government-set limits is crucial for individuals to make informed decisions regarding their pension. By knowing how their EPF pension is calculated, individuals can ensure a secure and comfortable retirement. https://inflationprotection.org/%e0%b0%b0%e0%b0%bf%e0%b0%9f%e0%b1%88%e0%b0%b0%e0%b1%8d%e0%b0%ae%e0%b1%86%e0%b0%82%e0%b0%9f%e0%b1%8d-%e0%b0%a4%e0%b0%b0%e0%b1%81%e0%b0%b5%e0%b0%be%e0%b0%a4-epf-%e0%b0%aa%e0%b1%86%e0%b0%a8%e0%b1%8d/?feed_id=130285&_unique_id=64e60c9e52c12 #Inflation #Retirement #GoldIRA #Wealth #Investing #EPFPension2020Telugu #EPFPensionCalculationAfterRetirementTelugu #EPFpensioncalculationformulaTelugu #EPFpensionTelugu #PensionTelugu #RajeshMKL #RetirementPension #EPFPension2020Telugu #EPFPensionCalculationAfterRetirementTelugu #EPFpensioncalculationformulaTelugu #EPFpensionTelugu #PensionTelugu #RajeshMKL
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