Dear Expert
Please clarify on EPS :-
I see Pension contribution in the PF passbook. .. Does this mean that there will be a pension?
Is this the formula for calculation ?
Monthly pension amount= (Pensionable salary X pensionable service) /70."
1. What is pensionable salary in the private industry?. Is this just the monthly basic salary ?
2. Is there a CAP on the pensionable salary that is used in the formula? What is it ?
3. What is the pensionable salary in the following scenario :-
Job-1 ( 1990 to 1992 ) : Monthly basic at the time of leaving : Rs.10000
Job-2 ( 1992 to 2014) : Monthly basic at the time of leaving : Rs.20000
Job-3 ( 2015 to 2020) : Monthly basic at the time of leaving : Rs.21000 ( aged : 58)
Job-4 ( 2021 to 2023) : Monthly basic at the time of leaving : Rs.12000
Does the last basic salary, which is lower than the salaries from previous jobs, negatively impact the monthly pension amount ?
Thank you
CAclubindia
