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.
Suppose:
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).

From India, Kolkata

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Hi
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/-

From India, Bangalore
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.
From India, Hyderabad

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