In case, he was not a member of EPS earlier or was a member of EPS & had withdrawn, he need not not be covered under EPS, if his EPF Wages at the time of joining your Establishment is more than Rs15,000/-
Immediately stop contribution to EPS Account
Give a Letter to PF Department mentioning about your mistake & request them to Transfer EPS Amount Contributed to EPF Account
Put proper Systems in place to avoid recurrence o such mistakes.
I asked the above doubt to clarify, I have recently joined an organization and the PF payment were due, in our organization we prepare the PF statement and send it to a Consultant, the consultant will verify and do the payments.
There were 5 new joiners and the members joined EPF for 1st time and their B+DA is more than 15000. So I sent PF statement with EPS=0. The consultant came back arguing that I was incorrect and not following the right method.
I tried explaining him by showing the EPF Gazette Notification. But he was not in the position to correct himself as he has been the consultant of organisation since a long time. I even tried explaining to the top management about the same that employee will not be eligible for the benefits provided if new Employee has been covered under EPS. The payments have be done by the consultant as per old method and have covered them under EPS.
Kindly advice how to deal such situation when consultant is following incorrect procedures ?
An Employee becoming PF Member for the First time & his EPF Wages is more than Rs15,000/-PM & EPF Contribution is more than Rs1,800/-PM
The following Employee will be covered under EPS:
An Employee was a Member of EPF& EPS in his Previous Employment & has not withdrawn his past accumulations though his EPF wages is more than Rs15,000/-PM & EPF Contribution is more than Rs1,800/-PM.
Such Employees EPS Contribution has to be made Maximum up to Rs15,000/-(EPS Wages) & Maximum EPS Contribution of Rs1,250/-PM
Please check whether there is any error in coveraage under EPS
I joined organization XXX after post graduation (year 2016)
In PF form , I mentioned that , I was not member of EPF and EPS previously. As per rule, as my basic was more than 15000, i was only memeber of EPF scheme only.
In 2018 , I switched to new company YYY, But this time, I mistakenly mentioned that I am member of EPF and EPS scheme . I am getting 1250 amount in my EPS account.
In 2019 , the YYY company got closed and merged to its parent company ZZZ . In company ZZZ also, I am member of both EPF and EPS scheme.
I tried once PF transfer from XXX to ZZZ , its got success
I tried once to transfer PF from YYY to ZZZ , its got rejected with EPF Wages is more than Rs15,000
I have already informed about my mistake to current company ZZZ . They are saying submit a fresh pf document and duly signed letter to PF office mentioning about the mistake . The timeline to resolve this issue ( close eps account) can take 1 year.
Now i am moving to a new company after few weeks , I am planning to mention in new company joining PF doc as " I am member of EPF scheme only"
Can someone please let me know, if my process is correct below
1)I will join the new company and i will mention there , I was member of epf scheme only previously. So that , they will not deposit 1250 in my eps account
2) I will wait for the issue resolve from ZZZ company regarding eps account close
3) once the issue got resolved , I will transfer epf balance to my new company