Dear Sujeetjha,
If you plan to join in some other company where PF applicable, then apply for Scheme Certificate instead of withdrawal, because with 2 years and 3 months contribution you will be eligible for Pension.
Till your withdrawal you will be treated as a member of the scheme.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
65If you plan to join in some other company where PF applicable, then apply for Scheme Certificate instead of withdrawal, because with 2 years and 3 months contribution you will be eligible for Pension.
Till your withdrawal you will be treated as a member of the scheme.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
Dear all concerned,
In any P.F. cover Establishment, the EPF Act prescribes the wage (plus D.A.) limit of Rs. 6500/- upto which it is mandatory to cover an employee under the EPF Scheme and to contribute EPF contribution @ 12% of Basic plus D.A. The employer can cover and contribute on higher Basic Pay (plus DA) and similarly an employee can contribute on his full Basic Pay which may exceed Rs. 6500/-. But it is not binding on employer to pay matching contribution in such cases. Further a retired but re-employed employee which has already settled his account with the EPFO can be excluded from coverage irrespective of his Basic Pay. But a retired employee from any organization not earlier member of EPF scheme shall have to be enrolled as member of EPF Scheme as per his wage admissibility. contribution of EPS ( EDLI wage limit is also Rs. 6500/-) is restricted to maximum of 8.33% of Rs. 6500/- irrespective of PF wages and the whole amount goes to EPF once an employee completes 58 years of his age.
S.C. Verma
From India, Delhi
In any P.F. cover Establishment, the EPF Act prescribes the wage (plus D.A.) limit of Rs. 6500/- upto which it is mandatory to cover an employee under the EPF Scheme and to contribute EPF contribution @ 12% of Basic plus D.A. The employer can cover and contribute on higher Basic Pay (plus DA) and similarly an employee can contribute on his full Basic Pay which may exceed Rs. 6500/-. But it is not binding on employer to pay matching contribution in such cases. Further a retired but re-employed employee which has already settled his account with the EPFO can be excluded from coverage irrespective of his Basic Pay. But a retired employee from any organization not earlier member of EPF scheme shall have to be enrolled as member of EPF Scheme as per his wage admissibility. contribution of EPS ( EDLI wage limit is also Rs. 6500/-) is restricted to maximum of 8.33% of Rs. 6500/- irrespective of PF wages and the whole amount goes to EPF once an employee completes 58 years of his age.
S.C. Verma
From India, Delhi
Dear Shashank Ji,
If I have correctly followed your query, here is the answer to it. The former Family Pension Scheme, 1971 has been replaced by Employees' Pension Scheme, 1995 with effect from 16-11-1995. When the pay ceiling was Rs.5000, maximum EPS contribution was 5000x8.33%=417. After revision of the ceiling from 5000 to 6500, it is now 6500x8.33%=Rs.541. The maximum EPS subscription at present is Rs.541.
From India, Pune
If I have correctly followed your query, here is the answer to it. The former Family Pension Scheme, 1971 has been replaced by Employees' Pension Scheme, 1995 with effect from 16-11-1995. When the pay ceiling was Rs.5000, maximum EPS contribution was 5000x8.33%=417. After revision of the ceiling from 5000 to 6500, it is now 6500x8.33%=Rs.541. The maximum EPS subscription at present is Rs.541.
From India, Pune
Dear Sri Shyam Agrawal,
You are the first person who really understood at least part of my question. Thanks for same.
Actually my question is also much more than what part of the contribution would go to EPF as it is called now.
As per the new rules of PF and EPF, if the employer and employee are willing to contribute 12% (part that the employer pays for PF and FPF components may be different) then PF deduction and PF contribution can very well be done on full basic (+DA) salary. This is what I (and my employer) have been doing all along.
As per the new EPF rules, pension calculation should be done at rate of last actual basic salary that was used to calculate the PF contribution. In this respect the ceiling of Rs 6500 does not really apply.
My PF contribution has always been on full basic salary - regardless of ceiling in effect at the time. Hence the last basic and PF contribution has been on basis of Rs 56000 as my basic salary.
For this reason I also expect that the Pension calculation should be done on basis of basic salary of Rs 56000.
I just wanted to confirm this. But no one seems to understand or relate to this. Can you please get me some confirmation
Thanks and regards,
Shashank
From India, Pune
You are the first person who really understood at least part of my question. Thanks for same.
Actually my question is also much more than what part of the contribution would go to EPF as it is called now.
As per the new rules of PF and EPF, if the employer and employee are willing to contribute 12% (part that the employer pays for PF and FPF components may be different) then PF deduction and PF contribution can very well be done on full basic (+DA) salary. This is what I (and my employer) have been doing all along.
As per the new EPF rules, pension calculation should be done at rate of last actual basic salary that was used to calculate the PF contribution. In this respect the ceiling of Rs 6500 does not really apply.
My PF contribution has always been on full basic salary - regardless of ceiling in effect at the time. Hence the last basic and PF contribution has been on basis of Rs 56000 as my basic salary.
For this reason I also expect that the Pension calculation should be done on basis of basic salary of Rs 56000.
I just wanted to confirm this. But no one seems to understand or relate to this. Can you please get me some confirmation
Thanks and regards,
Shashank
From India, Pune
Dear Shri Shashank Ji,
Irrespective of your salary over and above, maximum contribution for Employees' Pension Scheme, 1995 would be Rs.541 only. For higher contribution and still better pension, you would have to make special arrangements with the concerned EPFO office. I have not studies those rules in detail. Please visit the EPFO website and get the desired info from there. In case you want me to study it, please do write. I would be glad to do it. Thanks and regards
From India, Pune
Irrespective of your salary over and above, maximum contribution for Employees' Pension Scheme, 1995 would be Rs.541 only. For higher contribution and still better pension, you would have to make special arrangements with the concerned EPFO office. I have not studies those rules in detail. Please visit the EPFO website and get the desired info from there. In case you want me to study it, please do write. I would be glad to do it. Thanks and regards
From India, Pune
Dear All,
Please let me know EDLI charges details. Is it on Basic Salary or EPS Salary of Rs. 6500/-. If there is any proof or notification, please provide me the same. Please help me out. It is urgenty.
Regards
Siva
From India, Hyderabad
Please let me know EDLI charges details. Is it on Basic Salary or EPS Salary of Rs. 6500/-. If there is any proof or notification, please provide me the same. Please help me out. It is urgenty.
Regards
Siva
From India, Hyderabad
if we make any kind of wage ceiling limit of contribution for PF, is it right practice or can be done. please suggest me.
From India, Jaipur
From India, Jaipur
Dear Nitesh Ji,
Whatever changes you make for your employees, should not be in contravention of the Employees' Provident Fund Act, 1952 or the Employees' Pension Scheme, 1995. You can always give higher benefits to the employees than those prescribed under the law, no problem atall. However you cannot restrict the benefits given by the statute. Keeping this in mind, you may make suitable changes in your firm for your employees. I may elaborate this by quoting one example. The ceiling on gratuity under the Payment of Gratuity is Rs.10,00,000 (Rs.ten lakh). You may exceed this ceiling and pay more gratuity to your employees but any amount over and above Rs.10 lakh would be taxable income in the hands of the employee or his legal heirs. You would have to deduct income tax at source and remit it to the income tax department on the amount exceeding this ceiling. For family pension, you can remit only 8.33% of the pay of the employee and not more than that subject to Rs.541 maximum per month. If you want to give more pension benefits to your employees, you will have to make special arrangements with the concerned EPFO office with their prior approval.
From India, Pune
Whatever changes you make for your employees, should not be in contravention of the Employees' Provident Fund Act, 1952 or the Employees' Pension Scheme, 1995. You can always give higher benefits to the employees than those prescribed under the law, no problem atall. However you cannot restrict the benefits given by the statute. Keeping this in mind, you may make suitable changes in your firm for your employees. I may elaborate this by quoting one example. The ceiling on gratuity under the Payment of Gratuity is Rs.10,00,000 (Rs.ten lakh). You may exceed this ceiling and pay more gratuity to your employees but any amount over and above Rs.10 lakh would be taxable income in the hands of the employee or his legal heirs. You would have to deduct income tax at source and remit it to the income tax department on the amount exceeding this ceiling. For family pension, you can remit only 8.33% of the pay of the employee and not more than that subject to Rs.541 maximum per month. If you want to give more pension benefits to your employees, you will have to make special arrangements with the concerned EPFO office with their prior approval.
From India, Pune
There was no any Pension Scheme implemented in our department
Our organisation is Covered under E P F scheme
W E F 1.1.2006 New Pension Scheme has been come in existence
Is it mandatory to implement New Pension Scheme when we already depositing E P F of our employees. If Yes then what about E P F and Gratuity
Please advise us is it Mandatory to deposit the contribution in NPS for the employees Joined after 1-1-2006 and discontinue the Contribution of E P F,
Is it allowed by E P F
From India, Chandigarh
Our organisation is Covered under E P F scheme
W E F 1.1.2006 New Pension Scheme has been come in existence
Is it mandatory to implement New Pension Scheme when we already depositing E P F of our employees. If Yes then what about E P F and Gratuity
Please advise us is it Mandatory to deposit the contribution in NPS for the employees Joined after 1-1-2006 and discontinue the Contribution of E P F,
Is it allowed by E P F
From India, Chandigarh
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