If an employee joins a company in 2019 and becomes a member of the EPF but no EPS is deducted due to their basic salary being higher than Rs.15,000, and then later joins another company in 2021 with PF wages capped to Rs.15,000, will he be a member of the EPS in the second company?
From United States, Baton Rouge
13From United States, Baton Rouge
EPS is not applicable for the employees who are drawing wages above 15,000/- for the excluded members. It is not based on the capping
From India, Bangalore
From India, Bangalore
Thank you Jeevarathnam,
My bad let me rephrase, there was on employee who joined a company in 2019 with Basic wage of 20000. Company deduct EPF @ 20000, there us no contribution to EPS as per amendment of 2014.
Then he joined another compnay in 2021 were PF contribution is deducted capped @15000 for all employees. As per the case, he was not a member of EPS earlier due to higer wager but in 2nd company his contribution is capped to 15000 for PF.
My question whether there will be contribution towards EPS @8.33% as contribution is capped to 15000.
Thank you.
From United States, Baton Rouge
My bad let me rephrase, there was on employee who joined a company in 2019 with Basic wage of 20000. Company deduct EPF @ 20000, there us no contribution to EPS as per amendment of 2014.
Then he joined another compnay in 2021 were PF contribution is deducted capped @15000 for all employees. As per the case, he was not a member of EPS earlier due to higer wager but in 2nd company his contribution is capped to 15000 for PF.
My question whether there will be contribution towards EPS @8.33% as contribution is capped to 15000.
Thank you.
From United States, Baton Rouge
Hi
I got your point.
As per the EPF circular Dt. Sep 2014 it is very clear that any employee who is drawing salary above Rs. 15,000/- and joined post Sep 2014 they are not entitled for EPS. Circular never mentioned about the contribution amount.
As per the circular pension is not applicable to the said employee.
Now a days EPF department is rejecting the transfer claims/settlements for the employees for whom EPS is contributed by mistake eventhough they are restricted the contributions to Rs. 15,000/-
From India, Bangalore
I got your point.
As per the EPF circular Dt. Sep 2014 it is very clear that any employee who is drawing salary above Rs. 15,000/- and joined post Sep 2014 they are not entitled for EPS. Circular never mentioned about the contribution amount.
As per the circular pension is not applicable to the said employee.
Now a days EPF department is rejecting the transfer claims/settlements for the employees for whom EPS is contributed by mistake eventhough they are restricted the contributions to Rs. 15,000/-
From India, Bangalore
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