Here is the formula to calculate GPF Pension for employee after superannuation. Let’s check what it is and revised the amount for 7th pay commission…
General Provident Fund is an account which created by individuals or employees themselves, once their contribution in Public Provident Fund or Employee Provident Fund filled. This GPF scheme is a retirement cum savings scheme which accumulates our monthly contribution in the provident fund account.
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The entire amount in General Provident Fund account deposited to the subscriber on the day of retirement or suspension of employment. These are fully a retirement benefit plan and do differ from other provident fund accounts and pensions schemes.
How to Calculate GPF pension
Pension calculated based on the contribution made apart from the GPF and PPF account by the subscriber. The percentage of monthly contribution from the Basic salary accumulated and added with applicable interest charges. On day of retirnment, this amount may transfer to subscriber as in pension for 10 or 20 years as preferred.
Pension scheme is different from general provident fund and thus GPF don’t provide any pension benefit after retirement. The full lump sum amount handed over to the subscriber on the day of retirement without having any further connections. There is no sort of pension or future benefits added with a GPF account. It clears the settlement with subscribers with one time payment.
GPF Pension Calculated Formula
The GPF pension calculated on the basic formula where the individuals monthly basic salary’s 6.5% or 1.4th used as the commission for the pensions. After retirement, the total amount plus the maturity with interest rate calculated using the formula = Total Amount of GPF * (Interest Rate (8.5%) * Years * Months) = Maturity
In general, the monthly GPF pension is only a maximum of 6% of your basic salary and in order to calculate it, you will multiple by using the formula = 6.5% * Your salary * [Working periods (Years*Months)].
GPF Pension for 7th pay commission
As per the 7th pay commission GPO released by the Central Government, the GPF scheme pension revised to 5425 which was 3500 before July 2022.
In previous company i have got pension certificate as i have completed ten years. then i have left the service and started new company but not completed ten years in different companies and withdrawn the pf. now i am of 58 years so what to do about pension scheme certificate?