Dear Sir/Madam,
We have deducted and deposited EPS for employees who joined after September 1, 2014. However, according to the circular, they cannot be members of EPS if their salary exceeds 15,000/-. These employees have been working with us until now.
Kindly advise whether these employees should be considered members of EPS even though their salary exceeds 15,000/-. At the time of UAN registration, the portal did not request salary details.
Regards,
Sanjay Garg
From India, Delhi
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We have deducted and deposited EPS for employees who joined after September 1, 2014. However, according to the circular, they cannot be members of EPS if their salary exceeds 15,000/-. These employees have been working with us until now.
Kindly advise whether these employees should be considered members of EPS even though their salary exceeds 15,000/-. At the time of UAN registration, the portal did not request salary details.
Regards,
Sanjay Garg
From India, Delhi
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If at the time of joining (1st employment), the PF monthly gross is more than ₹15,000 per month on or after September 1, 2014, the employee is not eligible for EPS membership. If, by mistake, it has been deposited, the employee will not be eligible for pension or any family pension.
Stop depositing EPS contribution by talking to your PF office and submit one application to transfer the EPS amount already deposited to the PF account.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions
From India, New Delhi
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409Stop depositing EPS contribution by talking to your PF office and submit one application to transfer the EPS amount already deposited to the PF account.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions
From India, New Delhi
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In respect of a covered employee who has been contributing to the Pension Fund, the same will continue even if their salary is above Rs 15,000. However, the contribution to the Pension Fund will be limited to 8.33% of Rs 15,000. On the other hand, in respect of a new employee, no contribution can be made to the Pension Fund if the salary exceeds Rs 15,000. There is no restriction on becoming a member of the Provident Fund and contributing to the PF. However, if the employer decides to exclude an employee whose salary is above Rs 15,000 at the time of joining from the PF, they can do so.
Alternatively, if the employer considers PF as an investment and part of CTC, and is contributing to PF, then the entire 12% can be deposited to PF without dividing it between the Pension Fund and PF at 8.33% and 3.67% respectively. In such cases, if there was an oversight and 8.33% was deposited in the Pension Fund, it will be reverted to the Provident Fund.
If contributions have been made to the Provident Fund based on a salary rate of Rs 15,000, even if the actual salary paid is above Rs 15,000, and the PF has been restricted to the required rate (12%) on Rs 15,000, then the rule of not depositing to the Pension Fund does not apply. In that scenario, with the PF qualifying salary set at Rs 15,000, the employee would fall under the Pension bracket as well.
From India, Kannur
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Alternatively, if the employer considers PF as an investment and part of CTC, and is contributing to PF, then the entire 12% can be deposited to PF without dividing it between the Pension Fund and PF at 8.33% and 3.67% respectively. In such cases, if there was an oversight and 8.33% was deposited in the Pension Fund, it will be reverted to the Provident Fund.
If contributions have been made to the Provident Fund based on a salary rate of Rs 15,000, even if the actual salary paid is above Rs 15,000, and the PF has been restricted to the required rate (12%) on Rs 15,000, then the rule of not depositing to the Pension Fund does not apply. In that scenario, with the PF qualifying salary set at Rs 15,000, the employee would fall under the Pension bracket as well.
From India, Kannur
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EPS - Wage Limit increase_01.09. 2014.pdf
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