Sir/Madam,
I will be grateful to the experts to enlighten me on a view with sections and case laws if any in support:
If an employee gets a total salary (excluding HRA) of Rs. 18700/- or more (Basic -8800/- + HRA-3300/- + Conveyance Allowance-3300/- + Medical Allowance-3300/- + City Compensatory Allowance- 3300/-), will he be eligible to be a member of EPS'95 (Employees Pension Scheme'95) under EPFO? Here both employer and employee are agreed in PF and Pension contributions.
His date of joining in his first employment on February '21.
Thanks.
P. Bagchi
From India, Calcutta
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I will be grateful to the experts to enlighten me on a view with sections and case laws if any in support:
If an employee gets a total salary (excluding HRA) of Rs. 18700/- or more (Basic -8800/- + HRA-3300/- + Conveyance Allowance-3300/- + Medical Allowance-3300/- + City Compensatory Allowance- 3300/-), will he be eligible to be a member of EPS'95 (Employees Pension Scheme'95) under EPFO? Here both employer and employee are agreed in PF and Pension contributions.
His date of joining in his first employment on February '21.
Thanks.
P. Bagchi
From India, Calcutta
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If at all this is his/her first employment or earlier he/she is not the member to EPF then pension is not applicable. Both EPF & EPS shall be contributed to EPF only
From India, Bangalore
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726From India, Bangalore
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Someone is saying, for higher salaried employees, if PF is deducted at 12% up to the PF capping limit of 15000/- then Family Pension under EPS '95 is compulsorily applicable at 8.33% up to that capping amount (15000/-) too by default.
Is it true? If so, please confirm, and it will also be helpful if I get any rule, law, section, case law, etc., in support of this view.
From India, Calcutta
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Is it true? If so, please confirm, and it will also be helpful if I get any rule, law, section, case law, etc., in support of this view.
From India, Calcutta
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Under EPS:
- Contribution is payable out of the employer's share of PF, and no contribution is payable by the employee.
- Pension contribution not to be paid:
When an employee crosses 58 years of age and is in service (EPS membership ceases on completion of 58 years). When an EPS pensioner is drawing Reduced Pension and re-joins as an employee, in both cases, the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension contribution is not to be diverted, and the total employer share goes to the PF). In case an employee, who is not an existing EPF/EP member, joins on or after 01-09-2014 with wages above Rs 15,000/-, in these cases, the pension contribution part will be added to the employee's share, EPF.
From India, New Delhi
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- Contribution is payable out of the employer's share of PF, and no contribution is payable by the employee.
- Pension contribution not to be paid:
When an employee crosses 58 years of age and is in service (EPS membership ceases on completion of 58 years). When an EPS pensioner is drawing Reduced Pension and re-joins as an employee, in both cases, the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension contribution is not to be diverted, and the total employer share goes to the PF). In case an employee, who is not an existing EPF/EP member, joins on or after 01-09-2014 with wages above Rs 15,000/-, in these cases, the pension contribution part will be added to the employee's share, EPF.
From India, New Delhi
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EPFO-EPS-FUNCTI ONS & BENEFITS.docx
Handbook on EPS 1995 by EPFO (2001) - Shared by Parveen Kohli-Labour Laws Group-Jul'20.pd f