Partner - Risk Management
Sr.executive (per & Adm)
Sanjiv Kumar Verma
Assistant Engineer, Indian Telephone Industries,
1) Regarding salary up to Rs. 15000/-
It is statutory to contribute to EPF. 8.33% of employer contribution will be remitted to Pension Scheme. Balance share from employer side and full share from employee side will be credited to PF account.
2) Regarding salary above Rs. 15000/-.
It is not statutory to contribute to EPF. However if employee and employer wish, both employee and employer share can be credited to PF account. But there will not be any contribution to Pension Fund.
29th September 2014 From India, Bangalore
If an employee has a salary above ₹15000 (basic + DA), and is not an exempt employee, then his deduction will be same as that of an employee with salary of ₹15000. So, 8.33% of 15000 goes into pension fund and balance goes to PF account. Plus full 12% of 15000 being employees contribution goes into PF account.
If you are voluntarily contributing more than the limit, the additional amount of both employer and employee will be credited to PF account.
If you are an exempt employee, there is no PF, so division into the 2 parts does not arise.
29th September 2014 From India, Mumbai
It is not compulsory to divert 8.33% in EPS in respect of the employees who joined on or after 1st September 2014 and getting Basic Salary More than Rs. 15000/- P.M.
If such employees become member of EPF then the whole 24% (both employee and employer) Contribution will go to his EPF Account and no any amount will be diverted to EPS.
You can see point No. 8 of this attachment.
1st October 2014 From India, Kanpur
The Employees Pension Scheme was introduced to the EPF scheme on 16th November, 1995, by superseding the Employees Family Pension Scheme, 1971. This is a compulsory to all whoever become the member of EPF scheme and no option. Now your query applicability of this to the members whoever joins to the scheme on or after 1st Sep, 2014. Yes. He should be covered under EPS scheme provided if he become the member of Provident Fund Scheme. To bring him under coverage of PF scheme please refer the recent amendment of the Provident Fund Scheme.as regards wage ceiling which is increased from 6500 to 15000 per month.No changes in the formula of subscription of employer and remain the same except ceiling.
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
1st October 2014 From India, Bidar
In this regard i would like to say that if any employee is contributing above Rs. 15000/- then employee have to contribute the maximum ceiling of Rs. 15000/- @ 8.33% and rest of amount will be added in EPF amount.
If any employee want to continue more in Pension Scheme then they have to contribute 1.16 % additional contribution. So I would like to say that full contribution will not go to EPF account.
6th October 2014 From India, New Delhi
The EPFO circular what Mr. Sanjiv Kumar Verma has been enclosed and point no. 8 of the said circular is a clear indication of non eligibility of EPS membership those who have joined employment on or after 01.09.2014 with more than Rs.15,000/- salary. My interpretation of the circular are as follows:-
1. Those who are member of EPS prior to 01.09.2014 will continue even their salary has been increased more than Rs.15,000/-
2. Those who have joined on or after 01.09.2014 and salary Rs.15,000/- or below will be the member of EPS and in future even their salary increase above Rs.15,000/- will continue.
3. Those who have joined on or after 01.09.2014 and salary is above Rs.15,000/- are not eligible for EPS membership. Their entire amount will be deposited to PF A/c only if the organization ready to pay voluntarily.
Thanks & Regds.,
S K Bandyopadhyay ( Howrah, WB)
+91 98310 81531
27th January 2019 From India, New Delhi