Saswatabanerjee
Partner - Risk Management
Adoni Suguresh
Sr.executive (per & Adm)
Sanjiv Kumar Verma
Hr Consultant
Abbasiti
Assistant Engineer, Indian Telephone Industries,
+3 Others

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Dear All,
Kindly help me clarify these doubts.
Whether an employee who joins PF on or after 1st september can become member of the pension scheme, or would the whole 12% EMPLOYER CONTRIBUTION go to PF?
If there is any change in rules(for employees joining on or after Sept 2014) then is it applicable for both categories, one with salary under Rs. 15000/- and the other exceeding Rs. 15000/-?

From India, Ernakulam
Dear Vinlen,
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.
Abbas.P.S

From India, Bangalore
Just to be clear,
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.
W

From India, Mumbai
Dear Saswatha Banerjee, Here the posting of Mr. Vinlen is regarding those joined service/EPF on or after September 2014 and accordingly I have replied. Abbas.P.S .
From India, Bangalore
Dear Vinlen,
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.
Regards
Sanjiv

From India, Kanpur

Attached Files
File Type: pdf Acturial_WageCeiling_7738.pdf (204.5 KB, 294 views)

Dear Mr. Vinlen,
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.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

From India, Bidar
Those who join EPF on or after 01.09.2014 with a salary of more than Rs. 15000/- cannot contribute to EPS. Their full contribution will be credited to EPF only. This is a new change. Abbas.P.S
From India, Bangalore
Dear Sir,
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.
Regards
Sunil

From India, New Delhi
Those who join EPF on or after 01.09.2014 with a salary of more than Rs. 15000 will not get entry in to Pension Scheme. Then how can he contribute 1.16% to EPS? That is why I have posted that full contribution will go to EPF.
Abbas.P.S

From India, Bangalore
Dear Mr. Abbas,
Could you please mention the relevant EPFO circular vide which it is directed that those who join EPF on or after 01.09.2014 with a salary of more than Rs. 15000 will not get entry in to Pension Scheme of EPS ?
Regards,
Krishna

From India

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