Harsh Kumar Mehta
Consultant In Labour Laws/hr
Labour Laws Consultants
Sr.executive (per & Adm)
1. Though I am not well versed about deductions and deposits in respect of EPF contributions, but I have read that 8.33% of the employers' share of contribution in EPF & Misc. Provisions Act, 1952 goes to the account of Employees' Pension Scheme, 1995. Only balance amount ( 3.67% ) goes to the credit of Employees' Provident Fund Account of concerned employee.
2. In addition, there may be possibility that the employer may be depositing his share of contribution only Rs. 541/- i.e. upto a maximum statutory limit.
3. I hope seniors/experts who are actually attending to the deductions / deposits/yearly statements part of EPF contributions in their units may clarify the position.
23rd July 2014 From India, Noida
Your method of calculation is not in accordance with the EPF scheme. Mr.Harsh Kumar Mehta has explained you. Still I am elaborating the calculations..
1. Assuming that your salary will be Rs.15,000/-er month inclussive of Basic and D.A.
2. Then your contribution for Provident Fund will be 12.0 % on your Salary = Rs.1800.00 per month assuming that your contribution does not have ceiling as fixed. . This will be directly credited to your Provident Fund Account.
3. Come to your Employers contribution of Rs.1800.00 ie equal to your contribution. In this there will be split into two account. One will go EPS (Pension) and another
it will go to your Provident fund accouint. Now I will explain you with example.
4. Your employers contribution of Rs,1800.00 will be splitted as follows The pensionable salary is fixed at Rs.6500 per month at present. On this 8.33 % will go your pension account (which Government will not give any details) :and remaining 3.67 % shall be credited to your Provident Fund account.
Hence the total contribution to wards Provident fund will be Rs.1800 +1259 =3059 (both employees and employers) the employers contribution of Rs.541 will go directly pension account. This accumulated amount shall be paid by the EPFO only after you attaining the age of 58 years irrespective of any contribution based on the calculation as fixed and stipulated in the Employees Pension Scheme, 1995. Although the financial year is April to March but your contribution shall be from March to Feb as the contributions being deposited for succeeding month. You will get interest on your provident fun d accumulatyion seperately for employees and employers every year and you will get a annual statyement in Form 23 after your employer submits Annual Return in Form 6.
I think I have cleared your doubt about calculation.
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
24th July 2014 From India, Bidar
Mr Adoni has rightly clarified the query. Moreover, the amount contributed towards EPS do not bear any interest and it is settled at the time of re-reimbursement on the basis of length of service and last average contribution. Importantly, EPS contribution is not reflected in the EPF accumulation slips.
24th July 2014 From India, Delhi