Please help me understand the correct calculation of EPS wage to prepare the 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 the correct EPS wage or 15000 (in the above-mentioned case).
Thank you.
From India, Kolkata
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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 the correct EPS wage or 15000 (in the above-mentioned case).
Thank you.
From India, Kolkata
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Hi,
If the salary is above 15000/-, then you can restrict the EPF and EPS to 15000/- only. There is no need to contribute on higher wages. If you are still contributing on higher wages, then EPS shall not exceed 8.33% on 15000/-, i.e., the maximum EPS per month should not be above 1250/-.
From India, Bangalore
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653If the salary is above 15000/-, then you can restrict the EPF and EPS to 15000/- only. There is no need to contribute on higher wages. If you are still contributing on higher wages, then EPS shall not exceed 8.33% on 15000/-, i.e., the maximum EPS per month should not be above 1250/-.
From India, Bangalore
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Hi, please note the calculations are as follows: EPF (Employee Provident Fund Scheme) is 12% of the basic salary, with 12% contributed by the employer. From the employer's share, 3.67% will be allocated to EPF, and 8.33% will go towards EPS (Employee Pension Scheme). If your employee's basic salary exceeds 15000, you can cap the contribution at 15000.
From India, Hyderabad
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From India, Hyderabad
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Provident Fund - Excluded Employee - Definition.pdf
PROVIDENT FUND CALCULATION.xls