Employer Contribution to EPS vs. PF
My new employer contributed Rs. 1250 to the Employees' Pension Scheme (EPS), whereas my previous employer used to contribute the entire amount to the Provident Fund (PF) only. I believe I am not eligible for EPS as my basic salary was above Rs. 15,000 at the time of joining the scheme. Thus, the previous employer contributed the whole 12% to PF. Is this an error from the new employer? Can this be rectified?
From India, Mumbai
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My new employer contributed Rs. 1250 to the Employees' Pension Scheme (EPS), whereas my previous employer used to contribute the entire amount to the Provident Fund (PF) only. I believe I am not eligible for EPS as my basic salary was above Rs. 15,000 at the time of joining the scheme. Thus, the previous employer contributed the whole 12% to PF. Is this an error from the new employer? Can this be rectified?
From India, Mumbai
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In India, the eligibility criteria for the Employee Pension Scheme (EPS) are based on the employee's Basic Pay at the time of joining the scheme. As per the EPS rules, employees with a Basic Pay exceeding Rs. 15,000 are not eligible for EPS benefits, and their employer should contribute the full 12% of the Basic Pay to the Employee Provident Fund (EPF) only.
If your Basic Pay was above Rs. 15,000 when you joined the new employer, and they have erroneously contributed Rs. 1250 to EPS, it indeed seems to be an error on their part. This can be rectified by bringing it to the attention of your HR or payroll department.
To rectify this situation:
- Step 1: Contact your HR or payroll department immediately to inform them about the error in the EPS contribution.
- Step 2: Provide them with the necessary documentation, such as your salary slips and EPF statements, to support your claim that your Basic Pay exceeded Rs. 15,000.
- Step 3: Request your employer to correct the contribution and redirect the amount to your EPF account instead of EPS.
- Step 4: Follow up with your HR or payroll department to ensure the correction has been made and reflected in your EPF account.
It's essential to address this issue promptly to ensure compliance with the EPS rules and to avoid any discrepancies in your provident fund contributions. By following these steps and communicating effectively with your employer, the error in the EPS contribution can be rectified efficiently.
From India, Gurugram
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141If your Basic Pay was above Rs. 15,000 when you joined the new employer, and they have erroneously contributed Rs. 1250 to EPS, it indeed seems to be an error on their part. This can be rectified by bringing it to the attention of your HR or payroll department.
To rectify this situation:
- Step 1: Contact your HR or payroll department immediately to inform them about the error in the EPS contribution.
- Step 2: Provide them with the necessary documentation, such as your salary slips and EPF statements, to support your claim that your Basic Pay exceeded Rs. 15,000.
- Step 3: Request your employer to correct the contribution and redirect the amount to your EPF account instead of EPS.
- Step 4: Follow up with your HR or payroll department to ensure the correction has been made and reflected in your EPF account.
It's essential to address this issue promptly to ensure compliance with the EPS rules and to avoid any discrepancies in your provident fund contributions. By following these steps and communicating effectively with your employer, the error in the EPS contribution can be rectified efficiently.
From India, Gurugram
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Employee Pension Scheme, 1995.doc
Form10C.PDF for Employee Pension Scheme 1995.PDF