BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -There is an increase of Rs 429 in the pension amount due to addition of the bonus service years. The formula mandated by the EPF law is: (Pensionable salary X pensionable service years)/70. Pensionable salary: It is the “average” of the last drawn salary.

Detailed explanation-2: -Employees’ Provident Fund Organisation (EPFO) members are entitled to a pension after retirement. Currently, the employees and employers contribute 12% of their basic salary and dearness allowance to the EPF. Of the employer’s 12% contribution, 8.33% goes to the Employees’ Pension Scheme (EPS) and 3.67% to the EPF.

Detailed explanation-3: -5. Calculation of Pension Amount: – The formula to calculate the EPS pension is as follows: 5.1 Monthly pension amount= (Pensionable salary X pensionable service)/70.” 5.2 Pensionable service: This refers to the number of years for which contributions were made to the EPS account.

Detailed explanation-4: -The individual must be a member of the EPFO (Employees Provident Fund Organization) To get the pension benefit under EPS, one is needed to complete ten years of service and should have reached the age of 50 years to get early pension.