(1) Pensionable salary shall be the average monthly pay drawn in any manner including on piece rate basis during the contributory period of service in the span of 12 months preceding the date of exit from the membership of the Employees Pension Fund:
Provided that if a member was not in receipt of full pay during the period of twelve months preceding the day he ceased to be the member of Pension Fund, the average of previous 12 months full pay drawn by him during the period for which contribution to the Pension Fund was recovered, shall be takes into account as pensionable salary for calculating pension.
(2) If during the said span of 12 months there are non-contributory periods of service including cases where the member has drawn salary for a part of the month, the total wages during the 12 months span shall be divided by the actual number of days for which salary has been drawn and the amount so derived shall be multiplied by 30 to work out the average monthly pay.
(3) The maximum pensionable salary shall be limited to six thousand five hundred rupees per month:
Provided that if at the option of the employer and employee, contribution paid on salary exceeding Rs 6500 per month form the date commencement of this Scheme or from the date salary exceeds Rs 6500 whichever is later, and 8.33 per cent share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such higher salary.
Retirement
