I have doubt about this matter plez clarifiy dis???????? Those who started job after 1 Sep 2014 and earning more than 15,000 Rs in basic and DA will not be contributing to the EPS or Pension scheme.
From India, Bengaluru
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From India, Bengaluru
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Dear Sir Kindly help me how to transfer my pension contribution to present account.
From India
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EPF interest is calculated on the contributions made by the employee as well as the employer. The contribution made by the employee equals 12% of his/her Basic Pay plus Dearness Allowance (DA). When the Basic Pay plus DA is less than or equal to Rs 15000, the employee contribution is 12% of Basic Pay + DA, whereas the employer contribution is 3.67% of the Basic Pay + DA.
There are 3 methods of computing the contributions if the income is above the threshold of Rs 15000:
1. Employee contribution
- 12% of basic pay plus DA
- 12% of Basic pay - 8.33% of 15000
- 12% of basic pay plus DA, 3.67% of 15000
- 12% of 15000, 3.67% of 15000
We have used the 1st method for computing the employee and the employer contribution. To understand our methodology, let us consider the following case:
1. Employee's Basic Pay + DA: Rs 25000
2. Employee contribution towards EPF: 12% for 25000 = Rs 3000
3. Employer contribution towards EPF: 3.67% of 25000 = Rs 917.50
4. Employer contribution in Employee Pension Scheme (EPS): Rs 2082.50
5. Excess contribution of employer towards EPS above the threshold: Rs 832.50
6. The excess amount in (B) is added to the employer contribution towards EPF in (A) = Rs 1750
Hence, the final employer contribution towards EPF will be Rs 1750. Both methods produce the same result.
Once the contribution of the employee and the employer is computed, we calculate the interest on the contribution. The interest is calculated on the opening balance of each month. As the opening balance for the first month is zero, the interest earned in the 1st month is zero.
For the second month, interest is computed on the closing balance of the 1st month, which is the same as the opening balance of the second month. The closing balance of the 1st month is calculated by adding the employee's and the employer's contribution for the 1st month.
Similarly, the interest on the 3rd month is computed on the closing balance of the 2nd month. The closing balance of the 2nd month is calculated by adding the closing balance of the 1st month and the employee as well.
The total EPF balance at the end of the year = Balance at the end of 12 months (Employee plus the Employer contribution) + Sum of the interest earned in each month in the year = Rs 59351.
Regarding withdrawal, one can withdraw the full EPF balance upon attaining the age of 58 years. However, 90% of the EPF corpus can be withdrawn upon reaching the age of 57 years.
[Consultancy in Bangalore | Placement & Consultancy Services in Bangalore](http://www.bangaloresecretary.com)
From India, Bangalore
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There are 3 methods of computing the contributions if the income is above the threshold of Rs 15000:
1. Employee contribution
- 12% of basic pay plus DA
- 12% of Basic pay - 8.33% of 15000
- 12% of basic pay plus DA, 3.67% of 15000
- 12% of 15000, 3.67% of 15000
We have used the 1st method for computing the employee and the employer contribution. To understand our methodology, let us consider the following case:
1. Employee's Basic Pay + DA: Rs 25000
2. Employee contribution towards EPF: 12% for 25000 = Rs 3000
3. Employer contribution towards EPF: 3.67% of 25000 = Rs 917.50
4. Employer contribution in Employee Pension Scheme (EPS): Rs 2082.50
5. Excess contribution of employer towards EPS above the threshold: Rs 832.50
6. The excess amount in (B) is added to the employer contribution towards EPF in (A) = Rs 1750
Hence, the final employer contribution towards EPF will be Rs 1750. Both methods produce the same result.
Once the contribution of the employee and the employer is computed, we calculate the interest on the contribution. The interest is calculated on the opening balance of each month. As the opening balance for the first month is zero, the interest earned in the 1st month is zero.
For the second month, interest is computed on the closing balance of the 1st month, which is the same as the opening balance of the second month. The closing balance of the 1st month is calculated by adding the employee's and the employer's contribution for the 1st month.
Similarly, the interest on the 3rd month is computed on the closing balance of the 2nd month. The closing balance of the 2nd month is calculated by adding the closing balance of the 1st month and the employee as well.
The total EPF balance at the end of the year = Balance at the end of 12 months (Employee plus the Employer contribution) + Sum of the interest earned in each month in the year = Rs 59351.
Regarding withdrawal, one can withdraw the full EPF balance upon attaining the age of 58 years. However, 90% of the EPF corpus can be withdrawn upon reaching the age of 57 years.
[Consultancy in Bangalore | Placement & Consultancy Services in Bangalore](http://www.bangaloresecretary.com)
From India, Bangalore
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Our organization pays PF contribution, which is called CPF, on the ceiling of Rs 15000/-. So, Rs 1800/- + Rs 1800/- from the Employer (from which 8.33% goes to the pension fund) is deposited to EPFO. It is assumed that after retirement, employees who receive a last salary, say Rs 50000/-, will get a very small pension amount. As a self-financed organization, it is not expected that Management will agree to higher contributions to the CPF. Therefore, the ceiling will remain at Rs 15000/-.
My question is:
(a) Can an employee deposit a higher share amount (say Rs 10000/-) monthly even if the Employer pays only Rs 1800/- (within the ceiling of Rs 15000/-) to the pension fund?
(b) If an employee retires, can they deposit the required amount to EPFO to receive a higher pension (say 50% of the last pay drawn)?
From India
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My question is:
(a) Can an employee deposit a higher share amount (say Rs 10000/-) monthly even if the Employer pays only Rs 1800/- (within the ceiling of Rs 15000/-) to the pension fund?
(b) If an employee retires, can they deposit the required amount to EPFO to receive a higher pension (say 50% of the last pay drawn)?
From India
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