Dear Experts,
My company is opting to register under EPF , all employees have salary above 30k , I have confusion w.r.t generation of ecr .
Eps contribution is mandatory for employees having salary exceeding 15k or should I left blank column.
Dear Friend,
Already i have given clarification on this topic raised by you on 03 April 2019.
Capping the amount to 15000 pay PF 12% and EPS 8.33 % accordingly.
Dear Sir,
I appreciate your help, but our consultant is saying EPS is not for employees having salary more than 15000/- . he had given me reference of
"In case an employee, who is not existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution part will be added to employee share, EPF"
https://www.epfindia.gov.in/site_doc...butionRate.pdf
This is why I am little bit confused.
Dear
If any employee doesn't have existing PF account then you may exempt ( PF & EPS) him by filling the form no 11.
Only in case his Basic salary is more than 15,000 ( including all allowances Except HRA).
If the Basic is above Rs. 15,000/-, then the member is not to be covered under EPS. However, if he has joined you from some other establishment and there he was an EPS member, in such case, you need to deduct his EPS subject to the maximum EPS wage of Rs. 15,000/- For the wages below Rs.15,000/- it is compulsory to make them EPS members and remit their EPS cotributions.
Above 15k,Basic DA
Employer can pay epf contribution limited to 15k.
@Swetley: Then in such case how to validate ecr. Means can you please share calculation in such cases.
[Situation : 1] Employees having Basic+DA of over Rs. 15000/- and never been PF Member
Establishment may do away with enrolling them for PF. DO not generate their UAN in this case.
[Situation : 2] Employees having Basic+DA of over Rs. 15000/- and Establishment wants to enroll those members for PF
(Option-1) :
Deduct PF on their actual Basic+DA towards Employee Share and remit the same to EPFO
Employer's Contribution @ 12% of earned Basic+DA would be total amount to be paid against Employer's share of PF/EPF and Pension/EPS. Maximum Pension Share to be contributed by the establishment shall be Rs. 1250 (8.33% of Rs. 15,000/-) and balance should be contributed towards PF.
(Option-2) :
Deduct PF on ceiling amount of Basic+DA (i.e. Rs. 15,000/-) towards Employee Share and remit the same to EPFO
Employer's Contribution @ 12% of earned Basic+DA (subject to cap of Rs. 15,000/-) would be total amount to be paid against Employer's share of PF/EPF and Pension/EPS. Maximum Pension Share to be contributed by the establishment shall be Rs. 1250 (8.33% of Rs. 15,000/-) and balance (Rs. 1800 - Rs. 1250 = Rs. 550) should be contributed towards PF.

Attached Files
Membership is required for download. Create An Account First
File Type: xls Example for Situation-2.xls (24.0 KB, 104 views)

if Basic +DA <15000 EPF /EPS deducted at actual rate of basic & DA.
If Basic +DA > 15000,
Eployee share can be at actuals of Basic & DA towards epf.
Employer share however can be locked at max ceiling of 15000.
There is no obligation on the employer to deduct epf/eps at actuals if Basic +DA > 15000,
Refer Circular attached. Also would be like to have more clarification on this calculation.

Attached Files
Membership is required for download. Create An Account First
File Type: pdf epf ContributionRate circular 2018dec.pdf (494.6 KB, 128 views)

@Bijay_majumdar sir, thanks for your explanations , but as per circular my query was applicability of eps in case of new joinees having salary more than 15000/-
Bottom of first page is as follows:
"In case an employee, who is not existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution part will be added to employee share, EPF"
accordingly what should be mentioned in ecr
@TMayur, Request read the circular carefully.There is clear mention of age for clause,"In case an employee, who is not existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution part will be added to employee share, EPF"
this
''Pension contribution not to be paid - is applicable for employee above 58years.
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.

Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™