EPF Ceiling Now To Be Raised Rs.15,000/- From Rs.6,500/- - CiteHR
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As per my knowledge when a emloyer contributes 12 % of the salary of the employee, 3.67% goes to the Pf account and 8.33% goes to the Pension Scheme.
Now if a person draws a salary of 20,000 and wants to be a member of EPF, the employee and emloyer will both contribute 12% of 15,000. But the emloyee cannot be a member of pension Scheme because the limit is 15,000.
So how will an emloyer contribute 12 % in this case. Because he does not have a Pension account. 3.67% of 15,000 will go to the P.F account but where will 8.33% of 15,000 be deposited?

Dear Anusshka,
If an EPF member is not an EPS member or already availed pension, the entire contribution will be remitted to PF. For example, If PF contribution is Rs. 1800 each for both employee and employer; the entire amount i.e 1800+1800=3600 will be credited to PF. For an EPS member, 1250 will be paid to pension fund and 550 (employer share) + 1800 (employee share)will be paid to PF.

basic employee employer employer total
epf eps 8.33 epf 3.67
old 15000 1800 541 1259 3600 - earlier there was ceiling of 541 for the pension fund
new 15000 1800 1250 550 3600 - now this ceiling revised to 1250 for the pension fund
no change in deduction or employer contribution only thing is the employer provident fund will be reduced and pension fund will be more
for more clarification reach my mail

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