Understanding EPF Pension Scheme and Monthly Pension Calculation

Dear Seniors,

Please see the details below:

Basic Salary EPF Pension 8.33%
5000.00 416.00

Total Period = 10 yrs = 10x12 = 120 months
Suppose the Total Pension amount submitted is = 120x416 = 49920.00

My question is, when the above employee leaves the company after completing 10 yrs, will he be entitled to receive only 49920.00? Will 49920.00 be paid to him in the form of a monthly pension for a specific period, or will he be entitled to a fixed monthly pension for a lifetime?

Please guide me because I am in great confusion. What is the calculation method for the monthly pension amount in the above case?

Thanks,
Shalu

Dear Shalu,

As per my understanding, the pension is calculated as given below:

Last 12 months' average salary (PF deductible i.e., Basic) multiplied by Total number of years in service divided by 70 (Average human lifespan).

5000 x 10 / 70 = Rs. 714 per month

Thank you.