Hi all, I have a question: Someone joined today, his salary is 30K but PF is being deducted at Rs.15000. This employee was never a member of EPS scheme. Will it be a member of EPS Scheme or not? Pleae advise.
From India, Gurgaon
4From India, Gurgaon
Hi,
First you need to specify whether the employee is a fresh appointment (He was not a member of EPF/EPS earlier).
If he is a fresher, and his salary is more than 15K as per PF act, he is not eligible for EPS(Pension scheme).
The employer can contribute 12% of 30 K or employer can contribute 12% of 15 K(limit) towards EPF.
Trust you are clear.
From India, Mumbai
First you need to specify whether the employee is a fresh appointment (He was not a member of EPF/EPS earlier).
If he is a fresher, and his salary is more than 15K as per PF act, he is not eligible for EPS(Pension scheme).
The employer can contribute 12% of 30 K or employer can contribute 12% of 15 K(limit) towards EPF.
Trust you are clear.
From India, Mumbai
IF he was not a member of EPF before he joined your establishment it should be presumed that when he joined hs previous establishment his salary (PF qualifying salary) was more than Rs 15000 and as such he was not entitled to be part of Pension Scheme but that company did not declare him as excluded employee but covered him under EPF and contributed the entire 12 percent of the employer's contribution to his PF along with his contribution without bifurcating it (employer's contribution of 12%) as 8.33% to Pension fund and the remaining 3.67% to PF. Now he has joined your establishment and declared (in form11) that he was a member of PF in his last establishment and the given is the UAN. On the basis of this you can also follow the same and contribute the entire 12 percent being the employer's contribution to his PF instead of contributing it to Pension fund and Provident Fund at respective rates.
From India, Kannur
From India, Kannur
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EPS Scheme 1995.pdf
EPS-Explanation on full salary for Pension-Gist of SC judgment on KeralaHC.docx