I worked in a company for exactly 1 year (12 months). My basic salary was 120,600, and the deduction for PF from my salary was 1,206 per month.
As I know, equal deductions should be included by the employer. However, I was told at the time of joining that the deduction of the employer would also be deducted from my salary, and it would not be displayed on my salary slip.
The PF amount I received against the EPF A/C is 21,518 + 6,630 = 28,148, which is, however, less than the actual amount credited as a PF contribution, including both employee and employer, which should be 28,948.
I sent a grievance, and I did not receive a valid response to my query.
So please let me know how much amount I should get against the EPF, including pension and provident fund, and how we calculate the PF. Is the amount I received correct, or should I have received a balance amount?
I am also sending the details of the grievance here:
"This is with reference to your grievance registered vide Registration Number SRTAM/E/2012/00835.
It is informed that after processing your grievance, the following action(s) has been taken:
There is no physical balance available under the Pension Fund (EPS A/C) of the members since no running balance is being maintained as in the case of EPF A/C. Thus, the withdrawal benefit has no relation to the contribution made towards the EPS A/C. It is being calculated based on the wage as of the exit date and the service rendered by the member (as per Table-'D' under para 14 of the Employees Pension Scheme 1995 of EPF and MP Act, 1952 which is available in the public domain)."
Please suggest!
From India, Delhi
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1As I know, equal deductions should be included by the employer. However, I was told at the time of joining that the deduction of the employer would also be deducted from my salary, and it would not be displayed on my salary slip.
The PF amount I received against the EPF A/C is 21,518 + 6,630 = 28,148, which is, however, less than the actual amount credited as a PF contribution, including both employee and employer, which should be 28,948.
I sent a grievance, and I did not receive a valid response to my query.
So please let me know how much amount I should get against the EPF, including pension and provident fund, and how we calculate the PF. Is the amount I received correct, or should I have received a balance amount?
I am also sending the details of the grievance here:
"This is with reference to your grievance registered vide Registration Number SRTAM/E/2012/00835.
It is informed that after processing your grievance, the following action(s) has been taken:
There is no physical balance available under the Pension Fund (EPS A/C) of the members since no running balance is being maintained as in the case of EPF A/C. Thus, the withdrawal benefit has no relation to the contribution made towards the EPS A/C. It is being calculated based on the wage as of the exit date and the service rendered by the member (as per Table-'D' under para 14 of the Employees Pension Scheme 1995 of EPF and MP Act, 1952 which is available in the public domain)."
Please suggest!
From India, Delhi
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Hi,
Greetings for the day!
Please note that if your PF deduction on your earned Basic Salary is Rs. 1206 per month, then:
A) Your 12 months PF contribution will be - Rs. 14472 (i.e., 1206 X 12)
B) Employer's 12 months PF contribution will be - Rs. 7980 (i.e., 665 X 12)
C) Employer's 12 months EPS contribution will be - Rs. 6492 (i.e., 541 X 12)
The total amount in PF will be (A+B) and interest. So please check your deposited amount with your ex-employer; then you will be able to understand the calculation of the received amount.
In my opinion, your credited EPS amount of Rs. 6630/- is correct if your service is exactly 1 year (i.e., 6500 X 1.02).
For any further queries, please feel free to communicate. I will be glad to assist you.
With Regards,
P.C. Lohar
Asstt. Manager (HR & Admn)
From India, Sirohi
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Greetings for the day!
Please note that if your PF deduction on your earned Basic Salary is Rs. 1206 per month, then:
A) Your 12 months PF contribution will be - Rs. 14472 (i.e., 1206 X 12)
B) Employer's 12 months PF contribution will be - Rs. 7980 (i.e., 665 X 12)
C) Employer's 12 months EPS contribution will be - Rs. 6492 (i.e., 541 X 12)
The total amount in PF will be (A+B) and interest. So please check your deposited amount with your ex-employer; then you will be able to understand the calculation of the received amount.
In my opinion, your credited EPS amount of Rs. 6630/- is correct if your service is exactly 1 year (i.e., 6500 X 1.02).
For any further queries, please feel free to communicate. I will be glad to assist you.
With Regards,
P.C. Lohar
Asstt. Manager (HR & Admn)
From India, Sirohi
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Dear Kanchan,
Please confirm if you have maintained full attendance every month as per the employer's records, and if this is accurately reflected in the annual return Form-3A submitted by the company. It should explicitly state that there are no Non-Contributory periods/days (NCP) in the column throughout the year. If there are any instances of NCP, the PF office will deduct your amount in accordance with their central rules. To facilitate this process, they are now requesting a break certificate from employers.
With Regards,
Debanka Das (HR Admin PPMS (P) Ltd)
From India, Calcutta
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Please confirm if you have maintained full attendance every month as per the employer's records, and if this is accurately reflected in the annual return Form-3A submitted by the company. It should explicitly state that there are no Non-Contributory periods/days (NCP) in the column throughout the year. If there are any instances of NCP, the PF office will deduct your amount in accordance with their central rules. To facilitate this process, they are now requesting a break certificate from employers.
With Regards,
Debanka Das (HR Admin PPMS (P) Ltd)
From India, Calcutta
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Dear all concerned,
The employee's subscription as well as the employer's contribution is to be worked out at 12% of one's basic pay + dearness allowance wherever applicable. Some employers who are CTC conscious deduct the employer's contribution from the employee's salary on the grounds of the cost to the company agreed upon between them. Some employers restrict their contribution to the maximum ceiling of Rs. 6,500. Our aggrieved friend may please check the actual amount of deductions from her salary and remittances to her EPF account with the concerned EPFO.
Regarding the reference to the pension component, I have to add that the pension component is only 8.33% of the employer's contribution, subject to a maximum of Rs. 541 (8.33% of the ceiling of 6,500). This amount is only given to the member in the form of a pension at the end of one's career or on reaching the age of 58 after completing a minimum of 10 years of membership. The death of the member is an exception to this rule. In the case of a member's death, the member's spouse (for life) and two children (till the age of 25) receive a pension. If a member quits membership before completing the prescribed period of ten years (except in the case of death), he/she loses the pension component permanently. That is why I always insist that those who quit one job to take up a new one may opt for the continuation of their current EPF account with the new employer instead of closing it. If it is not possible for some reason, one may consider the option of a scheme certificate. The aggrieved friend may apply for the issue of a scheme certificate for her one-year membership, which may be used at the end of her career at 58 for an enhanced pension.
Thanks & regards,
From India, Pune
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The employee's subscription as well as the employer's contribution is to be worked out at 12% of one's basic pay + dearness allowance wherever applicable. Some employers who are CTC conscious deduct the employer's contribution from the employee's salary on the grounds of the cost to the company agreed upon between them. Some employers restrict their contribution to the maximum ceiling of Rs. 6,500. Our aggrieved friend may please check the actual amount of deductions from her salary and remittances to her EPF account with the concerned EPFO.
Regarding the reference to the pension component, I have to add that the pension component is only 8.33% of the employer's contribution, subject to a maximum of Rs. 541 (8.33% of the ceiling of 6,500). This amount is only given to the member in the form of a pension at the end of one's career or on reaching the age of 58 after completing a minimum of 10 years of membership. The death of the member is an exception to this rule. In the case of a member's death, the member's spouse (for life) and two children (till the age of 25) receive a pension. If a member quits membership before completing the prescribed period of ten years (except in the case of death), he/she loses the pension component permanently. That is why I always insist that those who quit one job to take up a new one may opt for the continuation of their current EPF account with the new employer instead of closing it. If it is not possible for some reason, one may consider the option of a scheme certificate. The aggrieved friend may apply for the issue of a scheme certificate for her one-year membership, which may be used at the end of her career at 58 for an enhanced pension.
Thanks & regards,
From India, Pune
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(Fact Checked)-The user reply contains accurate information regarding the calculation of EPF contributions and the pension component. The details provided align with the EPF rules and regulations. (1 Acknowledge point)
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Hi,
This doubt is with regards to my EPS withdrawal. For the period from Nov 2013 to August 2014, my EPS was Rs 542/- per month. From Sept 2014 to March 2015, my EPS was paid at Rs 620/- per month. As I resigned on 8th April 2015, my EPS was paid at Rs 276/- per month. I would like to know my EPS amount if I were to withdraw the same.
Regards,
Preetha V
From India, Chennai
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This doubt is with regards to my EPS withdrawal. For the period from Nov 2013 to August 2014, my EPS was Rs 542/- per month. From Sept 2014 to March 2015, my EPS was paid at Rs 620/- per month. As I resigned on 8th April 2015, my EPS was paid at Rs 276/- per month. I would like to know my EPS amount if I were to withdraw the same.
Regards,
Preetha V
From India, Chennai
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Hi,
I am working for a private company. I have resigned, and by the relieved date, I would complete my service in the current company for 9 years, 5 months, and 24 days. I wanted to know whether I need to extend my stay here for another 1 week so that I can be eligible for the pension. If I am not able to extend my stay here, what would be the loss for me as far as EPS is concerned? Please suggest.
From India, Bengaluru
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I am working for a private company. I have resigned, and by the relieved date, I would complete my service in the current company for 9 years, 5 months, and 24 days. I wanted to know whether I need to extend my stay here for another 1 week so that I can be eligible for the pension. If I am not able to extend my stay here, what would be the loss for me as far as EPS is concerned? Please suggest.
From India, Bengaluru
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(Fact Checked)-The Employee Pension Scheme (EPS) eligibility criteria require a minimum service of 10 years for pension benefits. Extending by 1 week won't make you eligible. You can withdraw your EPS contributions if you don't meet the minimum service requirement. (1 Acknowledge point)
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I have joined in Nov'15. My basic + DA salary is 10000 k and my EPF deduction is (EE-1200 @12% and ER-367 @3.67%). So only till August'16 month my EPF balance is 12264 only showing in the passbook, but it should be Rs. 15327 as per my calculation.
In this, only Nov'15 [EPF-(EE-1040 + ER-318)] and Jan'16 [EPF-(EE-1103 + ER-330)] were deducted as per the salary slip due to leave, and the rest of all the months (EE-1200 + ER-367) were deducted, shown both contributions as per EPFO passbook.
One more thing, in the month of June, my EPF was deducted, but in the EPFO passbook, that month is missing (Me, & 2 friends) also when we all cross-check the passbook.
So please tell me, if the company gives EPF @3.67%, then do they contribute EPS @8.33% or not? When I asked HR about it, he said we paid the June month EPF and all will check why it's not adding. He also asked why they contribute ER-3.67%, he said the pension scheme also contributes by them.
1. So how can I know about the EPS amount?
2. Do they contribute or not?
3. What documents are required for checking and connecting with that EPS for future company contributions when I change companies?
From India, Chandigarh
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In this, only Nov'15 [EPF-(EE-1040 + ER-318)] and Jan'16 [EPF-(EE-1103 + ER-330)] were deducted as per the salary slip due to leave, and the rest of all the months (EE-1200 + ER-367) were deducted, shown both contributions as per EPFO passbook.
One more thing, in the month of June, my EPF was deducted, but in the EPFO passbook, that month is missing (Me, & 2 friends) also when we all cross-check the passbook.
So please tell me, if the company gives EPF @3.67%, then do they contribute EPS @8.33% or not? When I asked HR about it, he said we paid the June month EPF and all will check why it's not adding. He also asked why they contribute ER-3.67%, he said the pension scheme also contributes by them.
1. So how can I know about the EPS amount?
2. Do they contribute or not?
3. What documents are required for checking and connecting with that EPS for future company contributions when I change companies?
From India, Chandigarh
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(Fact Checked)-The EPF deduction should be EE-12% and ER-3.67%. The employer should contribute to EPS @8.33%. Your EPF balance calculation is correct. (1 Acknowledge point)
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(Fact Checked)-The user reply contains accurate information regarding the attendance records impacting PF contributions and the requirement for a break certificate from employers. The details provided are aligned with PF rules and practices. (1 Acknowledge point)