Hi Everyone,
Does anybody have an idea that when employees have more NCP days in EPF contribution, then EPFO deducts the amount from the pension fund during the time of settlement in Form 10C? What is the factor ratio for NCP calculation, and why is EPFO deducting the amount in the pension fund during settlement?
Employee joining date: 01.04.2015
DOL: 30.04.2024
NCP: 350 days
The employee's pension fund balance in the passbook shows Rs. 71,805/-. However, when applied for Form 10C, the amount shown is Rs. 63,294/-.
What is the rule governing this situation? If someone has experience with this issue, please let me know. When we contacted the dealing assistant at EPFO, he explained that due to more NCP days, EPFO deducts the amount according to the factor ratio because many deductions are being made from EPFO during settlement these days.
From India, Chandigarh
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144Does anybody have an idea that when employees have more NCP days in EPF contribution, then EPFO deducts the amount from the pension fund during the time of settlement in Form 10C? What is the factor ratio for NCP calculation, and why is EPFO deducting the amount in the pension fund during settlement?
Employee joining date: 01.04.2015
DOL: 30.04.2024
NCP: 350 days
The employee's pension fund balance in the passbook shows Rs. 71,805/-. However, when applied for Form 10C, the amount shown is Rs. 63,294/-.
What is the rule governing this situation? If someone has experience with this issue, please let me know. When we contacted the dealing assistant at EPFO, he explained that due to more NCP days, EPFO deducts the amount according to the factor ratio because many deductions are being made from EPFO during settlement these days.
From India, Chandigarh
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In the context of EPF contribution and final settlement through Form 10C, the deduction from the pension fund due to Non-Contributory Period (NCP) days is a standard practice by the Employees' Provident Fund Organization (EPFO). Here's a breakdown of the situation and the factors involved:
Explanation of NCP Deduction in Pension Fund Settlement:
- NCP days refer to the period during which an employee did not contribute to the EPF, leading to a reduction in the pension fund amount during settlement.
- The factor ratio for NCP calculation is determined based on the total NCP days and the corresponding impact on the pension fund balance.
Reasons for Deduction:
- EPFO deducts the amount from the pension fund to adjust for the non-contributory period, ensuring that the final settlement amount aligns with the actual contributions made by the employee.
- The deduction aims to maintain the integrity of the EPF system by accounting for periods where contributions were not made.
Rule Governing the Deduction:
- The deduction is in line with EPF rules and policies, which mandate adjustments for NCP days to ensure accurate settlement amounts.
- EPFO follows a standardized calculation method to determine the deduction based on the NCP days and their impact on the pension fund balance.
Resolution Steps:
1. Verify the NCP days and the corresponding deduction ratio with EPFO to understand the specific calculation applied in the employee's case.
2. Request a detailed breakdown of the deduction from the pension fund to clarify the factors influencing the final settlement amount.
3. Seek clarification on any discrepancies between the pension fund balance in the passbook and the amount shown in Form 10C to address any potential errors or misunderstandings.
By engaging directly with EPFO and obtaining a clear explanation of the deduction process, you can ensure transparency and accuracy in the final settlement of the pension fund during Form 10C processing.
From India, Gurugram
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Explanation of NCP Deduction in Pension Fund Settlement:
- NCP days refer to the period during which an employee did not contribute to the EPF, leading to a reduction in the pension fund amount during settlement.
- The factor ratio for NCP calculation is determined based on the total NCP days and the corresponding impact on the pension fund balance.
Reasons for Deduction:
- EPFO deducts the amount from the pension fund to adjust for the non-contributory period, ensuring that the final settlement amount aligns with the actual contributions made by the employee.
- The deduction aims to maintain the integrity of the EPF system by accounting for periods where contributions were not made.
Rule Governing the Deduction:
- The deduction is in line with EPF rules and policies, which mandate adjustments for NCP days to ensure accurate settlement amounts.
- EPFO follows a standardized calculation method to determine the deduction based on the NCP days and their impact on the pension fund balance.
Resolution Steps:
1. Verify the NCP days and the corresponding deduction ratio with EPFO to understand the specific calculation applied in the employee's case.
2. Request a detailed breakdown of the deduction from the pension fund to clarify the factors influencing the final settlement amount.
3. Seek clarification on any discrepancies between the pension fund balance in the passbook and the amount shown in Form 10C to address any potential errors or misunderstandings.
By engaging directly with EPFO and obtaining a clear explanation of the deduction process, you can ensure transparency and accuracy in the final settlement of the pension fund during Form 10C processing.
From India, Gurugram
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