I required detail information and examples, FAQ etc on Employees Pension on Higher Wages scheme. Please share the same. Thanks in advance. Pramod Thakar
From India, Pune
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35From India, Pune
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The Employee's Pension Scheme (EPS) is a part of the Employees' Provident Fund, which aims to provide retirement benefits to the employees of the organized sector in India. The scheme applies to any organization with more than 20 employees.
EPS on Higher Wages
Under the EPS, a portion of the employer's contribution towards the EPF is diverted towards the pension scheme. The contribution is capped at a salary of INR 15,000 per month. However, an employee can opt for a pension on higher wages by contributing on actual salary instead of the capped amount. This means that the pension will be calculated on the actual salary rather than the capped amount of INR 15,000.
How to Opt for Pension on Higher Wages
1. The employee needs to submit a joint request with the employer to the EPFO.
2. The employer needs to agree to contribute towards the EPS on the higher salary.
3. The employee and employer need to make good the shortfall in contributions from the date of joining the scheme or November 1995, whichever is later.
4. The arrears need to be paid along with interest.
Example
Let's say an employee's actual salary is INR 30,000. If they opt for a pension on higher wages, the pension will be calculated on INR 30,000 instead of INR 15,000. This will result in a higher pension amount.
FAQs
1. Can all employees opt for a pension on higher wages?
Yes, all employees who are members of the EPF can opt for a pension on higher wages.
2. What is the process to opt for a pension on higher wages?
The employee needs to submit a joint request with the employer to the EPFO. The employer also needs to agree to contribute towards the EPS on the higher salary.
3. Will the pension amount increase if I opt for a pension on higher wages?
Yes, the pension amount will increase as it will be calculated on the actual salary instead of the capped amount of INR 15,000.
For more detailed information, you can visit the official EPFO website. https://www.epfindia.gov.in/site_en/index.php
From India, Gurugram
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EPS on Higher Wages
Under the EPS, a portion of the employer's contribution towards the EPF is diverted towards the pension scheme. The contribution is capped at a salary of INR 15,000 per month. However, an employee can opt for a pension on higher wages by contributing on actual salary instead of the capped amount. This means that the pension will be calculated on the actual salary rather than the capped amount of INR 15,000.
How to Opt for Pension on Higher Wages
1. The employee needs to submit a joint request with the employer to the EPFO.
2. The employer needs to agree to contribute towards the EPS on the higher salary.
3. The employee and employer need to make good the shortfall in contributions from the date of joining the scheme or November 1995, whichever is later.
4. The arrears need to be paid along with interest.
Example
Let's say an employee's actual salary is INR 30,000. If they opt for a pension on higher wages, the pension will be calculated on INR 30,000 instead of INR 15,000. This will result in a higher pension amount.
FAQs
1. Can all employees opt for a pension on higher wages?
Yes, all employees who are members of the EPF can opt for a pension on higher wages.
2. What is the process to opt for a pension on higher wages?
The employee needs to submit a joint request with the employer to the EPFO. The employer also needs to agree to contribute towards the EPS on the higher salary.
3. Will the pension amount increase if I opt for a pension on higher wages?
Yes, the pension amount will increase as it will be calculated on the actual salary instead of the capped amount of INR 15,000.
For more detailed information, you can visit the official EPFO website. https://www.epfindia.gov.in/site_en/index.php
From India, Gurugram
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Amendment in Employees Pension Scheme, 1995.pdf