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 the 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. The total EPS balance was Rs.27,538/- but only Rs.15,145/- was settled.
Upon the 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 the 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, the full amount is not sanctioned as it is based on a 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
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1While the EPF claim was settled fully, the EPS claim was settled partially. The total EPS balance was Rs.27,538/- but only Rs.15,145/- was settled.
Upon the 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 the 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, the full amount is not sanctioned as it is based on a 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
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Many factors are applicable in the specified post, based on the calculation method, i.e., the day wages method or monthly method, leave payment, etc. It is advisable to ask the person responsible for EPF matters in the establishment to submit Form 3A to EPFO for the entire service period, mentioning the NCP days, and provide a copy to the employee. This action would assist the employee in resolving the issue to some extent.
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In order to get a refund of full EPS contributions, does that mean there should not be any NCP days throughout the entire period of employment? Or, even if full EPS values of Rs. 541/Rs. 1250 were paid, due to NCP days, a person will not receive the benefit of a full refund of EPS contributions. Kindly clarify.
Thank you.
From India, Chennai
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Thank you.
From India, Chennai
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@Paresh,
I already mentioned that there are multiple factors, namely, if the employee has not yet reached 58 years of age, then EPF does not disburse 100% of the EPS amount, except in two cases: 1) the death of the employee or 2) permanent departure from India, meaning no further membership would be possible in the future.
If the NCP column is left blank, i.e., not provided by the employer, confusion may arise, and certain formulas need to be applied. They divide each EPF year into two parts, from March to August and from September to February, calculating the average on the lowest paid basis.
For 10C disbursement, withdrawals stop once the employee reaches 55 years of age.
There is no mention of why the department paid less; this information is available in the claim section of the passbook portal. If the payment was less than expected, there should be a remaining balance.
EPS typically serves as a pension scheme and is usually not allowed to be settled for the full 100% upon withdrawal.
Regarding the query, only the issue of NCP days was mentioned, which could potentially be addressed with the submission of Form 3A. Other aspects remain somewhat unclear.
For further insights, additional details would be helpful.
Thank you.
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I already mentioned that there are multiple factors, namely, if the employee has not yet reached 58 years of age, then EPF does not disburse 100% of the EPS amount, except in two cases: 1) the death of the employee or 2) permanent departure from India, meaning no further membership would be possible in the future.
If the NCP column is left blank, i.e., not provided by the employer, confusion may arise, and certain formulas need to be applied. They divide each EPF year into two parts, from March to August and from September to February, calculating the average on the lowest paid basis.
For 10C disbursement, withdrawals stop once the employee reaches 55 years of age.
There is no mention of why the department paid less; this information is available in the claim section of the passbook portal. If the payment was less than expected, there should be a remaining balance.
EPS typically serves as a pension scheme and is usually not allowed to be settled for the full 100% upon withdrawal.
Regarding the query, only the issue of NCP days was mentioned, which could potentially be addressed with the submission of Form 3A. Other aspects remain somewhat unclear.
For further insights, additional details would be helpful.
Thank you.
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Thank you so much for your reply; it has provided good insight about EPS Form 10C refund. I will discuss this with EPFO and see if employees can receive additional refunds.
It is noted that for employees who joined during 2011/2012, there was a significant difference between the passbook balance and the refund amount. However, employees who joined in 2015 and after have received refunds of almost the same amount as shown in their passbook.
Thank you once again.
From India, Chennai
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It is noted that for employees who joined during 2011/2012, there was a significant difference between the passbook balance and the refund amount. However, employees who joined in 2015 and after have received refunds of almost the same amount as shown in their passbook.
Thank you once again.
From India, Chennai
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Age factor matters here. If the employee has achieved 55+ before the date of leaving, then some amount would get locked in account number 10, assuming that he may join another establishment and obtain a little pension after 58-60-62 (depending on contribution). On the other hand, a person under 40 has to give an undertaking that he will never join EPF (the Aadhar card gets blocked by the portal), and the full amount of account 10 is disbursed.
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@ Glidor
Thank you once again.
Our establishment has closed business with effect from 31.05.2020, and necessary letters were submitted to EPFO. Most of the employees fall in the age group of 40 to 50. Six employees have completed over ten years of service, making them ineligible for EPS refund. We will contact EPFO to inquire about the release of any remaining amounts. All employees are illiterate and have been unemployed since our establishment closed.
From India, Chennai
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Thank you once again.
Our establishment has closed business with effect from 31.05.2020, and necessary letters were submitted to EPFO. Most of the employees fall in the age group of 40 to 50. Six employees have completed over ten years of service, making them ineligible for EPS refund. We will contact EPFO to inquire about the release of any remaining amounts. All employees are illiterate and have been unemployed since our establishment closed.
From India, Chennai
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@Paresh,
Once again, think before filing a claim for account 10, as it will permanently disable the specific UAN and Aadhar on their portal. They will not be able to join EPF again, meaning their future may be cast in a gray shadow.
If they do not withdraw account 10, they can continue to use their UAN for the next span of service and can enjoy the EDLI and pension benefits, given their past employment history with EPFO.
The balance is an individual choice, which varies from person to person.
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Once again, think before filing a claim for account 10, as it will permanently disable the specific UAN and Aadhar on their portal. They will not be able to join EPF again, meaning their future may be cast in a gray shadow.
If they do not withdraw account 10, they can continue to use their UAN for the next span of service and can enjoy the EDLI and pension benefits, given their past employment history with EPFO.
The balance is an individual choice, which varies from person to person.
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