An employee submitted EPF and EPS claims after completing 8 years and 4 months of service. It was a catering industry with monthly wages varying according to number of days. NCP days were mentioned after the year 2017. Before 2017, NCP days were not mentioned in the monthly ECR lists.
While the EPF claim was settled fully, the EPS claim was settled partially. Total EPS balance was Rs.27,538/- but ony Rs.15145/- was settled.
Upon employer's query through email, EPFO's replies were "As regards EPS, the service rendered by the member taking NCP days (break in service) and also average salary drawn by the member will be taken into account for the calculation of EPS which is based on the formula provided in Table D of EPS, 1995" and "As regards eps full amount is not sanctioned as is based on formula and factor".
Can anyone explain? Is there any way that the employee can get the balance EPS amount in full?
Thanks in advance!!
From India, Chennai
1While the EPF claim was settled fully, the EPS claim was settled partially. Total EPS balance was Rs.27,538/- but ony Rs.15145/- was settled.
Upon employer's query through email, EPFO's replies were "As regards EPS, the service rendered by the member taking NCP days (break in service) and also average salary drawn by the member will be taken into account for the calculation of EPS which is based on the formula provided in Table D of EPS, 1995" and "As regards eps full amount is not sanctioned as is based on formula and factor".
Can anyone explain? Is there any way that the employee can get the balance EPS amount in full?
Thanks in advance!!
From India, Chennai
@pravesh
Many factors are applicable in the specified post, based on calculation method, i.e day wages method or monthly method, leave payment etc
ask the person who looks the EPF matter in establishment to submit form 3A to EPFO for whole service period, with NCP days mentioning, and a copy to the employee, this would help the employee a little bit to resolve,
Many factors are applicable in the specified post, based on calculation method, i.e day wages method or monthly method, leave payment etc
ask the person who looks the EPF matter in establishment to submit form 3A to EPFO for whole service period, with NCP days mentioning, and a copy to the employee, this would help the employee a little bit to resolve,
Does that mean that
in order to get refund of full EPS contributions, there should not be any NCP days in the entire period of employment
(OR)
Even if full EPS values of Rs.541/Rs.1250 was paid, because of NCP days, a person will not get the benefit of full refund of EPS cont.
Kindly clarify.
From India, Chennai
in order to get refund of full EPS contributions, there should not be any NCP days in the entire period of employment
(OR)
Even if full EPS values of Rs.541/Rs.1250 was paid, because of NCP days, a person will not get the benefit of full refund of EPS cont.
Kindly clarify.
From India, Chennai
@Paresh
already told that there are multiple factors,
viz
if the employee has not attained 58 yrs of age, then EPF does not disburse 100% amount of EPS, except two cases 1) death of employee 2) permanently leaving india, i.e no further membership possible in future
if NCP column is blank i.e not furnished by employer, then confusion starts generating and there are certain farmula to be applied , they divide every EPF year in two half yearly parts march to aug and sept to feb every year and calculate the average on lowest paid basis
for 10C disbursal triggers stop withdrawal if the employee attains 55 yrs of age.
there is nothing mentioned that why the department paid less, it is there in claim section of passbook portal and if paid less then there should be balance remaining
EPS is usually for pension scheme and usually it is not allowed to get settled to the tune of 100% under withdrawal
as per the query, it was mentioned only NCP days issue, so that may be redressed with help of form 3A submission, balance things are in gray shadow
put some more details, for more opinions
already told that there are multiple factors,
viz
if the employee has not attained 58 yrs of age, then EPF does not disburse 100% amount of EPS, except two cases 1) death of employee 2) permanently leaving india, i.e no further membership possible in future
if NCP column is blank i.e not furnished by employer, then confusion starts generating and there are certain farmula to be applied , they divide every EPF year in two half yearly parts march to aug and sept to feb every year and calculate the average on lowest paid basis
for 10C disbursal triggers stop withdrawal if the employee attains 55 yrs of age.
there is nothing mentioned that why the department paid less, it is there in claim section of passbook portal and if paid less then there should be balance remaining
EPS is usually for pension scheme and usually it is not allowed to get settled to the tune of 100% under withdrawal
as per the query, it was mentioned only NCP days issue, so that may be redressed with help of form 3A submission, balance things are in gray shadow
put some more details, for more opinions
Thank you so much!!
Your reply has given good insight about EPS Form 10C refund. Will discuss with EPFO and try if employees can get additional refund.
It is noted that for employees who had joined during 2011/2012, there was much difference in the passbook balance and refund amount.
However, employees who had joined during 2015 and after that have got refund of almost the same amount as in their passbook.
Thank you once again.
From India, Chennai
Your reply has given good insight about EPS Form 10C refund. Will discuss with EPFO and try if employees can get additional refund.
It is noted that for employees who had joined during 2011/2012, there was much difference in the passbook balance and refund amount.
However, employees who had joined during 2015 and after that have got refund of almost the same amount as in their passbook.
Thank you once again.
From India, Chennai
@paresh
age factor matters here, if the employee has achived 55+ before the date of leaving, then some amount would get locked in account no 10, assuming that he may join another establishment and obatin a little pension after 58 -60-62 ( depending on contribution)
where as a person under 40 has to give undertaking that he will never join EPF( the aadhar card get blocked by the portal) and full amount of account 10 is disbursed
age factor matters here, if the employee has achived 55+ before the date of leaving, then some amount would get locked in account no 10, assuming that he may join another establishment and obatin a little pension after 58 -60-62 ( depending on contribution)
where as a person under 40 has to give undertaking that he will never join EPF( the aadhar card get blocked by the portal) and full amount of account 10 is disbursed
@ Glidor
Thank you once again.
Our establishment has closed business w.e.f. 31.05.2020 and necessary letters were submitted with EPFO.
Most of the employees are in the age group of 40 to 50. Six employees have crossed ten years of service, so EPS refund is not possible for them.
We shall get in touch with EPFO and try whether the balance amount will be released. All are illiterate people and they are jobless since our establishment has been closed.
From India, Chennai
Thank you once again.
Our establishment has closed business w.e.f. 31.05.2020 and necessary letters were submitted with EPFO.
Most of the employees are in the age group of 40 to 50. Six employees have crossed ten years of service, so EPS refund is not possible for them.
We shall get in touch with EPFO and try whether the balance amount will be released. All are illiterate people and they are jobless since our establishment has been closed.
From India, Chennai
@Paresh
Once again think before filing claim of account 10, as it will permanent disable the specific UAN and aadhar on their portal and they can not join EPF again, means their future may go in gray shadow
if they do not withdraw account 10, then they can use their UAN for next span of service and can enjoy the EDLI and pension, as they have past history of employment with EPFO
balance is individual choice, which change person to person
Once again think before filing claim of account 10, as it will permanent disable the specific UAN and aadhar on their portal and they can not join EPF again, means their future may go in gray shadow
if they do not withdraw account 10, then they can use their UAN for next span of service and can enjoy the EDLI and pension, as they have past history of employment with EPFO
balance is individual choice, which change person to person
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