Dear Experts, I am EPF registered employer since 2018. The salary of all employees is greater than 20,000, and none of them had UAN prior to 2018. Since 2018 our old consultant remitted EPS contribution 2018 till July 2021. Now I came to know the mistake of EPS contribution. Now whether we should stop EPS for all employees or should continue depositing. How to rectify the old mistake?
From India, Pune
9From India, Pune
First of all it has to be checked whether the employees were member of EPFO prior to 2018 or not. If they were member of EPS prior to 2018 and PF gross ( Basic & DA ) were below 15,000/- at the time of joining , then it will continue even the PF gross ( at present Basic +DA + Other allowances as per Apex court verdict) is more than 15,000/-.
If the employee became member of EPFO from 2018 first time ( earlier not member of EPFO to any other organizations), then immediately stop the EPS contribution if the PF gross is more than 15,000/- and deposit entire amount to PF only.Take up the matter with the concerned EPFO office with a request letter to transfer the amount already deposited to EPS account to PF Account.
From India, New Delhi
If the employee became member of EPFO from 2018 first time ( earlier not member of EPFO to any other organizations), then immediately stop the EPS contribution if the PF gross is more than 15,000/- and deposit entire amount to PF only.Take up the matter with the concerned EPFO office with a request letter to transfer the amount already deposited to EPS account to PF Account.
From India, New Delhi
Dear Sir
Thank you for your opinion.
I am not clear about PF Gross 15000?
What is pf gross ?
Salary of employees more than 20000 but we are doing pf on maximum Rs 15000 only.
Which salary to consider for eps applicability
From India, Pune
Thank you for your opinion.
I am not clear about PF Gross 15000?
What is pf gross ?
Salary of employees more than 20000 but we are doing pf on maximum Rs 15000 only.
Which salary to consider for eps applicability
From India, Pune
PF Gross means in general Basic & DA . But after the Apex court verdict, it also includes other allowances and in that case PF Gross will be Basic +DA + Other Allowances ( random vary from organizations to organizations). Instead of mentioning different pockets,I call it as PF Gross.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
I understand the situation like this:
You have all employees drawing salary of more than Rs 15000. All were covered by EPF by you (or by your consultant) and in respect of all these employees you have paid Pension also.
Now, since you have once covered the employees under EPF, you cannot stop contributing to PF. I assume that at the time of coverage (ie, 2018) you should have a salary break up in which the Basic salaries of all these employees were less than Rs 15000 and that was why your consultant covered all of them. And you would have contributed PF on a maximum salary of Rs 15000 and not on the total salary. If not, or if you had contributed PF on actual salary which is higher than Rs 15000, and you wish to stop contribution on that higher salary, you can do so and limit your contribution to 12% of Rs 15000. But you cannot completely stop contributing to PF.
From India, Kannur
You have all employees drawing salary of more than Rs 15000. All were covered by EPF by you (or by your consultant) and in respect of all these employees you have paid Pension also.
Now, since you have once covered the employees under EPF, you cannot stop contributing to PF. I assume that at the time of coverage (ie, 2018) you should have a salary break up in which the Basic salaries of all these employees were less than Rs 15000 and that was why your consultant covered all of them. And you would have contributed PF on a maximum salary of Rs 15000 and not on the total salary. If not, or if you had contributed PF on actual salary which is higher than Rs 15000, and you wish to stop contribution on that higher salary, you can do so and limit your contribution to 12% of Rs 15000. But you cannot completely stop contributing to PF.
From India, Kannur
Once started, you cannot withdraw / stop EPF contributions. It is only possible after the employee(s) exit(s) your organisation. However, as Mr. Madhu said, you can limit your contributions upto 12% of Rs.15K to reduce your burden on salary and wages at the same time adhering to all statutory compliances. This is only possible in case of ESI where the current limit is upto Rs.21K (Gross Wages). Employee earning more than 21K can be taken out of ESI coverage after the end of the contribution period (1st Apr-30th Sep / 1sts Oct -31st Mar).
From India, Lucknow
From India, Lucknow
Under the PF and Misc. Act there are EPF, EPS & EDLI. Any employee may the member of EPF but not the member of EPS as per EPFO Circular No- Actuarial/18(2)2008/Vol III/7738 dated 29.08.2014. In that circular at point no.8 it has been mentioned as follows :-
"As EPS will henceforth apply only to EPF members whose pay at the time of becoming PF member is not more than 15,000/- per month on or after 01.09.2014 the entire employer and employee contribution shall remain in the PF and no diversion to EPS shall be made for all new PF members on or after 01.09.2014 having salary more than 15,000/- at the time of joining. This must be ensured as any negligence on this issue may lead to unwarranted litigations."
In the instant posting, the employer by mistake deposited EPS amount violating above direction of EPFO. To overcome the situation, it is now essential to stop depositing contribution to EPS only and to deposit entire EPF and EPS contribution to EPF only. It is also essential to forward one letter to concern EPFO office stating the mistake and to transfer the deposited EPS amount to EPF account.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
"As EPS will henceforth apply only to EPF members whose pay at the time of becoming PF member is not more than 15,000/- per month on or after 01.09.2014 the entire employer and employee contribution shall remain in the PF and no diversion to EPS shall be made for all new PF members on or after 01.09.2014 having salary more than 15,000/- at the time of joining. This must be ensured as any negligence on this issue may lead to unwarranted litigations."
In the instant posting, the employer by mistake deposited EPS amount violating above direction of EPFO. To overcome the situation, it is now essential to stop depositing contribution to EPS only and to deposit entire EPF and EPS contribution to EPF only. It is also essential to forward one letter to concern EPFO office stating the mistake and to transfer the deposited EPS amount to EPF account.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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