Employee Provident Fund or EPF is a retirement scheme and I hope you knew about it once you joined a company. On having a discussion with my colleagues on these, I got to learn what is pensionable salary in EPF as well. It is basically the average monthly salary that an employee receives in the last year or 12 months before their retirement. The more you get into this, the more you get to know about its features and calculation as well.
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How to calculate pensionable salary in EPF?
I thought knowing about EPF is enough but no. I never knew about the pensionable salary in EPF until last year but these are some basic things that must be known to all.
To find the pensionable salary, a formula is to be followed that is:
Pensionable Salary = Average Salary*Pensionable Service/70
Average salary here = Basic Salary + Dearness Allowance drawn in the last 12 months.
Pensionable service = the number of years the person has worked in the company after 15th November 1995.
What is a non-pensionable salary?I have heard about pensionable salary but later learnt that there is non-pensionable salary as well. It refers to that part of your income which is not subjected to a mandatory contribution towards a pension or Provident Fund.
So if the employer does not deduct pension or PF contributions, then your income will be non-pensionable.
This is all I can say for what is pensionable salary in EPF.
Read More:How to activate EPF account?
How to pay EPF online?
How to know EPF number?
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What is Pensionable Salary in EPF?
Madan Mohan
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3 Year
2022-10-25T09:45:33+00:00 2022-10-25T09:45:34+00:00Comment
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