Last Updated on July 30, 2024 by Rajith Suvarna
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| EPF Pension Withdrawal Calculation – Table D |
In this post, I will explain to you the epf pension withdrawal calculation. Every employee needs to know why in some cases after filling out form 10c for pension withdrawal, they are not able to withdraw their full pf pension amount. Also, the actual reason for the pension deduction is hidden under this calculation made by the EPFO.
Update
The Government of India has made some new changes in the Employees Pension Scheme (EPS), 1995 which now allows the PF account holders to withdraw their pension amount, even though serving any company for less than six months.
Let’s deep dive further to understand, how much the PF pension amount can be claimed for withdrawal based on the service completed in the company as per the new calculation performed in Table D.
Employer Contribution towards Employee’s PF and Pension
- The employer contributes 12%, out of which 8.33% goes to the employee’s pension balance and 3.67% to the employee’s PF balance.
- The employer contribution is made on a monthly basis and can be viewed on the employee’s passbook. So the employer doesn’t deduct your pension according to him/her during the withdrawal.
New Employees Pension Scheme (EPS) Rules
The Central Government of India has made special changes in the new rule under the EPS 1995 Scheme regarding the pension withdrawal amount compared to the old rule. According to the Government, more than 7 lakh PF members will benefit from this.
Let us see what are the new changes and why these changes are made in the EPS 1995 scheme for pension withdrawal.
- PF Members having less than 6 months of service also can now claim their pension amount after leaving the organisation.
- The Government of India has made changes in Table D to make sure that employee’s each month of service is taken into consideration instead of year and pension withdrawal benefit is given in proportion to the service provided.
- The employee’s pension claim amount depends on the EPS wages provided based on a month of service completed.
- The changes were made considering the 95 lakh PF members leaving the EPS scheme before 10 years of service towards the EPS scheme.
- The rule was revised so all the PF members, no matter providing less than 6 months of service or just a month of service, everyone will be eligible to withdraw their pension share amount based on the service provided.
EPF Pension Withdrawal Calculation – Table D
After referring to the previous example regarding the service counted by the EPFO in addition to pension withdrawal. We will now see the pension calculation as per the service counted by the EPFO for withdrawing the pension balance.
1) What is Table D in EPF?
Table D is the pension calculation table. With the help of this table, we will get an idea of how much pension we will receive at the time of the pension withdrawal based on the month of service under EPS 1995 scheme.
New Table D for Pension Calculation
| Months of service | Proportion of wages at exit |
|---|---|
| 1 | 0.08 |
| 2 | 0.17 |
| 3 | 0.25 |
| 4 | 0.33 |
| 5 | 0.42 |
| 6 | 0.51 |
| 7 | 0.60 |
| 8 | 0.68 |
| 9 | 0.77 |
| 10 | 0.85 |
| 11 | 0.94 |
| 12 | 1.02 |
| 13 | 1.10 |
| 14 | 1.18 |
| 15 | 1.26 |
| 16 | 1.34 |
| 17 | 1.42 |
| 18 | 1.51 |
| 19 | 1.59 |
| 20 | 1.67 |
| 21 | 1.75 |
| 22 | 1.83 |
| 23 | 1.91 |
| 24 | 1.99 |
| 25 | 2.07 |
| 26 | 2.16 |
| 27 | 2.24 |
| 28 | 2.32 |
| 29 | 2.40 |
| 30 | 2.49 |
| 31 | 2.57 |
| 32 | 2.65 |
| 33 | 2.73 |
| 34 | 2.82 |
| 35 | 2.90 |
| 36 | 2.98 |
| 37 | 3.06 |
| 38 | 3.15 |
| 39 | 3.23 |
| 40 | 3.32 |
| 41 | 3.40 |
| 42 | 3.49 |
| 43 | 3.57 |
| 44 | 3.65 |
| 45 | 3.74 |
| 46 | 3.82 |
| 47 | 3.91 |
| 48 | 3.99 |
| 49 | 4.08 |
| 50 | 4.16 |
| 51 | 4.25 |
| 52 | 4.33 |
| 53 | 4.42 |
| 54 | 4.51 |
| 55 | 4.59 |
| 56 | 4.68 |
| 57 | 4.76 |
| 58 | 4.85 |
| 59 | 4.93 |
| 60 | 5.02 |
| 61 | 5.11 |
| 62 | 5.20 |
| 63 | 5.28 |
| 64 | 5.37 |
| 65 | 5.46 |
| 66 | 5.55 |
| 67 | 5.63 |
| 68 | 5.72 |
| 69 | 5.81 |
| 70 | 5.90 |
| 71 | 5.98 |
| 72 | 6.07 |
| 73 | 6.16 |
| 74 | 6.25 |
| 75 | 6.34 |
| 76 | 6.42 |
| 77 | 6.51 |
| 78 | 6.60 |
| 79 | 6.69 |
| 80 | 6.78 |
| 81 | 6.87 |
| 82 | 6.95 |
| 83 | 7.04 |
| 84 | 7.13 |
| 85 | 7.22 |
| 86 | 7.31 |
| 87 | 7.40 |
| 88 | 7.49 |
| 89 | 7.58 |
| 90 | 7.68 |
| 91 | 7.77 |
| 92 | 7.86 |
| 93 | 7.95 |
| 94 | 8.04 |
| 95 | 8.13 |
| 96 | 8.22 |
| 97 | 8.31 |
| 98 | 8.41 |
| 99 | 8.50 |
| 100 | 8.59 |
| 101 | 8.68 |
| 102 | 8.78 |
| 103 | 8.87 |
| 104 | 8.96 |
| 105 | 9.05 |
| 106 | 9.15 |
| 107 | 9.24 |
| 108 | 9.33 |
| 109 | 9.33 |
| 110 | 9.33 |
| 111 | 9.33 |
| 112 | 9.33 |
| 113 | 9.33 |
2) How is the EPS Withdrawal benefit calculated?
Let me show you an example to help you better about pension calculation by referring to Table D.
| Employee Rajith with 8 months of service | Employee Akash with 1 month of service |
| Basic Pay + DA = Rs. 13,000 | Basic Pay + DA = Rs. 13,000 |
| Actual Service – 8 months | Actual Service – 1 month |
| Pension Calculation Formula | |
| Pension = [ (Basic + DA) x (% of proportion of wages) ] | |
| Pension = 13,000 x 0.68 = Rs. 8,840 | Pension = 13,000 x 0.08 = Rs. 1040 |
Please refer the Table D and the above table to calculate your eligible pf pension withdrawal amount based on the month of your service towards the EPS scheme.
- As you can see from the above example in comparison to two employees the pf pension claim amount is calculated based on the month of service and proportional to the wages for that particular month from Table D along with your Basic salary plus DA.
Points before withdrawing Pension Amount
- You need to mark the date of exit in the UAN portal, in case your employer doesn’t update it.
- You need to fill out Form 10C to withdraw your pension amount.
I hope this post was helpful to you guys in understanding the pension amount calculation for withdrawal based on the service completed.