EPFO Releases Circular on Pension Computation
2023 • 6min • News • Business
Published On: June 15, 2023 - The calculation method for a higher pension differs depending on whether an individual retires before or after September 1, 2014. If an eligible applicant's pension (EPS) commenced prior to September 1, 2014, the higher pension calculation will be based on the average monthly pay received during the contributory period of service within the 12 months preceding the retirement date. In other words, it will be based on the average salary during the 12 months prior to exiting the membership of the pension fund. On the other hand, for individuals retiring on or after September 1, 2014, the higher EPS pension calculation will consider the average salary earned during the contributory period of service within a span of 60 months preceding the retirement date.