One of our ex-employees worked with our company for one year from 2016-2017. Recently, he applied for EPF and EPS withdrawal wherein his EPS withdrawal request got rejected due to non-eligibility. Please confirm if because of his age factor he is not eligible. His current age is 60 years. But year of service is only 1 yrs and for pension scheme minimum service limit is 10 years. Please give clarity on this issue.
From India, undefined
1From India, undefined
Minimum service required for pension is 10 year and in above case the concerned does not meet the criteria. Also, as he was appointed at the age of 59 how did have you paid EPS Contribution ? As, EPS contribution is to be paid only upto the age of 58 years only.
Dear Juyal,
UNDER EPS
Pension contribution not to be paid:
When an employee crosses 58 years of age and is in service (EPS membership ceases on completion
of 58 years). When an EPS pensioner is drawing Reduced Pension and re-joins as an employee.
In both the cases the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension
contribution is not to be diverted and total employer share goes to the PF).
In case an Employee, who is not existing
EPF/EPS Member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution
part will be added to employee share, EPF.
In all other cases Pension Contribution is payable. A member joining after 50 years age, if not a Pensioner does not have choice of not getting the Pension Contribution on grounds that he will not
complete 10 years of eligible service. The social security cover is applicable till he/she is a member.
Please submit Letter to PF Department stating erroneously, Employee was covered under EPS though he was not eligible.Further, request for transferring, Amount lying in Pension Account to EPF Account.There after, Member will get Contribution lying in EPS Account.PF Department would have rejected EPS Claim, through Letter citing reasons.Address the issues raised therein
From India, New Delhi
UNDER EPS
Pension contribution not to be paid:
When an employee crosses 58 years of age and is in service (EPS membership ceases on completion
of 58 years). When an EPS pensioner is drawing Reduced Pension and re-joins as an employee.
In both the cases the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension
contribution is not to be diverted and total employer share goes to the PF).
In case an Employee, who is not existing
EPF/EPS Member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution
part will be added to employee share, EPF.
In all other cases Pension Contribution is payable. A member joining after 50 years age, if not a Pensioner does not have choice of not getting the Pension Contribution on grounds that he will not
complete 10 years of eligible service. The social security cover is applicable till he/she is a member.
Please submit Letter to PF Department stating erroneously, Employee was covered under EPS though he was not eligible.Further, request for transferring, Amount lying in Pension Account to EPF Account.There after, Member will get Contribution lying in EPS Account.PF Department would have rejected EPS Claim, through Letter citing reasons.Address the issues raised therein
From India, New Delhi
EPF themselves will not accept contributions due to the advancing age. However, it appears that EPF has accepted by oversight and needs to be returned with interest to the employee without further delay. The matter will be entertained in the consumer court as this appears to be a deficiency of service on the part of EPF.
From India, Mumbai
From India, Mumbai
Dear Sogemar, The Employer has not followed due procedure in coverage & remittance of PF Contributions.Further, it does not amount to deficient service.
From India, New Delhi
From India, New Delhi
The employee is entitled to claim from EPFO his dues along with withholding interest. The employer can inform EPFO to release the amount so that he can rectify the mess he has created and the employee can submit the necessary form for withdrawal. In the event, if the EPFO refused, which is the usual attitude, then it may be considered as Deficiency of Service on the part of the EPFO, not the employer.
From India, Mumbai
From India, Mumbai
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