Pension

This query is : Resolved

paras (Querist)
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26 March 2009 Dear All,

What is the medhod to calculate the Pension?

What is the limit to calculate pension is it 8.33% or Rs. 417 only?

Tushar Yerawar

Tushar Yerawar (Expert)
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26 March 2009 Employer needs to contribute 12% of salary towards PF. Of this 8.33% should go to Pension and 3.67% to PF. However, the ceiling limit for 8.33% is Rs.6500. It means for salary upto Rs.6500 8.33% should be for pension and 3.67% should be for PF. For salary over and above Rs.6500 whole 12% should go to PF.

Whenever salary is over and above Rs.6500 use the following Logic.

12% of Salary xxx.xx
Less:Pension 541.45
Balance(PF) xxx.xx

All the limits stated above are monthly limits.