Greetings for the day,
Being an HR -Executive you must aware of the fact that contribution of EPF/EPS is consist of two parts employee & employer. Employee contribute 12% of his/her wages (basic+da+food conc. if any ) in the same way employer contribute the same of 12% and also the administrative charges 1.61% of epf/eps wages.Employee contribution is 12% & employer contribution & employer contribution is consist of 12% furthur bifurcated in 8.33% -EPS (employee pension scheme) or limit upto Rs. 541/- i.e 8.33% of 6500/- (ceiling) & 3.67% (diff. of 12% & 8.33%).
a) For claiming the pension fund the contribution to the fund of 180days is must (whether 180days completed in 6or 7or 8 months).
b)The intrest payment is only possibe on 12% & 3.67% on 8.33% (pension fund) and government’s contribution of 1.17 percent of the worker’s monthly wages.
c) Yes employer part is under your ctc.
Thanks & Regards,
sumit kumar saxena
For a contribution of 1.10 years to Pension fund, the withdrawal benefit is 1.02 x average salary of last drawn 12 months. To get withdrawal benefit, there should be a minimum service of 1 year. But 6 months and above will be rounded up to 1 year. Hence the above quotation "For claiming the pension fund the contribution to the fund of 180days is must (whether 180days completed in 6or 7or 8 months)" is not correct.
Why you are thinking now itself of with drawal benefit from your PF and EPs. Since now only you have started your career and continue to be a member of Provident fund wherever you work. You can get it transferred the fund from one company to other by applying in Form No.13 through your employer and see that you can continue till your retirement after attaining the age of 58 years. Provident Fund is nothing but Bhavishyanidhi of your future. This will help you in your future in getting your monthly pension from and out of your contribution of EPS. If you are not contributing over three years continuously , then you can think over with drawal of PF and EPS, Now the Government is thinking to increase the wage ceiling from 6500 to 15000 per month. This will be more beneficial to the employees.
Sr.Executive (Pers, Admin & Ind.Rels)
Labour Laws Consultant