1. What is a PF Pension Calculator?

Definition: This calculator estimates the monthly Provident Fund (PF) pension based on pensionable salary and years of service.

Purpose: It helps employees estimate their retirement benefits under the Employees' Pension Scheme (EPS).

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Pension \) — Monthly pension amount ($)
• \( Pensionable\ Salary \) — Average salary ($/month)
• \( Service \) — Years of service

Explanation: The pension amount is calculated by multiplying the pensionable salary by years of service, then dividing by 70.

3. Importance of PF Pension Calculation

Details: Understanding your potential pension helps with retirement planning and financial security assessment.

4. Using the Calculator

Tips: Enter your average pensionable salary and total years of service. Both values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is considered pensionable salary?
A: Typically the average of the last 12 months' salary or the average of the best 12 months in the last 5 years, depending on scheme rules.

Q2: Why divide by 70 in the formula?
A: The divisor 70 is set by pension regulations to determine the monthly pension amount based on salary and service years.

Q3: Is there a maximum pension amount?
A: Yes, most pension schemes have a maximum pensionable salary limit and maximum service years considered.

Q4: Does this include employer contributions?
A: No, this calculates only the pension component. Employer PF contributions are separate.

Q5: How accurate is this calculation?
A: This provides an estimate. Actual pension may vary based on specific scheme rules and government regulations.