Hi All, Requesting suggestions related to EPS. I joined my first company (A) in October 2014 with wages less than 15K, which makes me an EPS member. I joined my third company (C) with wages of more than 15K, and even this company C has contributed to EPS, which is aligned with the EPFO rule. But when I tried to transfer PF from Company C to D (my current employer), the Field officer rejected it by saying wages of more than 15K and that I was not eligible for EPS. How do I convince them that I am eligible for EPS since my wages were less than 15K in my first company PF.
From India, Bengaluru
From India, Bengaluru
As per the Employee Pension Scheme (EPS) rules, any employee whose wages were less than ₹15,000 at the time of joining their first PF-covered employer is eligible to be a part of EPS, regardless of wage increases in subsequent employments.
Can PF wages more than 15000 confirm eligibility of EPS?
The provident fund laws state that if an employee's basic salary exceeds Rs 15,000 per month, they cannot join EPS even if they are part of the EPF scheme. Now, if the wage ceiling limit is hiked to Rs 21,000, employees who join the EPF scheme with a basic salary exceeding Rs 15,000 will be eligible to join EPS.
What is the EPS contribution on higher wages?
Of this, 8.33% of Rs 21,000 (Rs 1,749) goes towards the employer's EPS contribution, while the remaining 3.67% (Rs 1,011) contributes to the EPF. “As the EPS contributions increase due to the new wage ceiling, EPF contributions decrease, enhancing the pension corpus over time,”
Who is not eligible for EPS membership?
The employee must have been a member of EPF for at least ten years. The employee must have attained the age of 58 years for a regular pension or 50 years for an early pension. If you are not eligible, such as if your salary exceeds Rs 15,000, contributions should not be made to the EPS account.
Also read discussion had earlier on the subject in this link -
https://www.citehr.com/647481-wages-greater-than-15000-but-eps-contribution.html
From India, Bangalore
1081The provident fund laws state that if an employee's basic salary exceeds Rs 15,000 per month, they cannot join EPS even if they are part of the EPF scheme. Now, if the wage ceiling limit is hiked to Rs 21,000, employees who join the EPF scheme with a basic salary exceeding Rs 15,000 will be eligible to join EPS.
What is the EPS contribution on higher wages?
Of this, 8.33% of Rs 21,000 (Rs 1,749) goes towards the employer's EPS contribution, while the remaining 3.67% (Rs 1,011) contributes to the EPF. “As the EPS contributions increase due to the new wage ceiling, EPF contributions decrease, enhancing the pension corpus over time,”
Who is not eligible for EPS membership?
The employee must have been a member of EPF for at least ten years. The employee must have attained the age of 58 years for a regular pension or 50 years for an early pension. If you are not eligible, such as if your salary exceeds Rs 15,000, contributions should not be made to the EPS account.
Also read discussion had earlier on the subject in this link -
https://www.citehr.com/647481-wages-greater-than-15000-but-eps-contribution.html
From India, Bangalore
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EPS - Wage Limit increase_01.09. 2014.pdf
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