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Dear All,
Please help me to understand the correct calculation of EPS wage to prepare EPF challan. Below are the two methods, please suggest which one is correct.
EPS contribution for the month of Jun-2016
Employee's Basic wage = 25000
Paid Days = 20

Calculation Method 1:
Basic Salary = 25000 * 20 / 30 = 16667
EPF wage = 16667
EPS wage = 15000
Calculation Method 2:
Basic Salary = 25000 * 20 / 30 = 16667
EPF wage = 16667
EPS wage = 15000 * 20 / 30 = 10000
Please suggest whether 10000 is a correct EPS wage or 15000 (in the above mentioned case).
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If the salary is above 15000/- then you can restrict the EPF & EPS to 15000/- only. No need to contribute on higher wages. If still you are contributing on higher wages then EPS shall not exceed 8.33% on 15000/- ie maximum EPS per month is not above 1250/-
Hi please note the calculations are as followes EPF(employee provident fund scheme) is 12% from basic and 12% will be from employer side from employer share again 3.67% will move to EPF( employee provident fund scheme) and 8.33 % goes to EPS(employee pension scehme) if your employee's basic is more then 15000 then you can restrict it to 15000.
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