Industrial Relations And Labour Laws
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My mother in law worked in an organisation which retired her on 30-04-2019- at the retained age of 63 instead of age 58 years ( 31-12-2013).
During the period from 1-4-2014 to 30-04-2019, the organisation deposited PF contribution (both Employee and Employer portion 12%).
The EPFO made pension as per her last salary drawn on 31-12-2013, instead of 30-4-2019 . The EPFO made all calculation on the basis of 31-12-2013.
Now, I would like to know whether the amount deposited by the Employer in Pension fund after the age of 58 years to 63 years ( 1-4-2014 to 30-04-2019 ) should be paid to her?
Pl. clarify if my understanding is correct- because the EPFO made calculation on the basis of 31-12-2013 ( Like Service length or Last salary drawn).

From 58 years to 63 years the entire amount should deposit on PF account instead of EPS. Therefore, calculation of pension amount will be on the basis of salary at the age of 58 instead 63. If by mistake it has been deposited instead of PF account to EPS account then it is a problem. Talk to EPFO to get the wrongfully deposited money back.
In this regard I am enclosing one circular from EPFO which is self explanatory. Please go through point no. 8 of the said circular. There are organizations who have not noticed this circular and deposited to EPS instead of PF account for the employees who have joined after 01.09.2014 with more than 15,000/- as PF Gross. It is now essential to stop to deposit EPS account and to avoid future problem take up the matter with EPFO for transferring the amount from EPS account to PF account.
S K Bandyopadhyay (Howrah, WB)
+91 98310 81531

Attached Files
File Type: pdf Acturial_WageCeiling_7738.pdf (203.5 KB, 72 views)

Even if you have deposited your share of 8.33% to pension fund by mistake, the system of EPFO will not make the same mistake that you have made. It will automatically be sent to PF account. If the had applied for pension on attaining 58 years of age and the employee is in receipt of pension, the process of further depositing a portion (8.33%)to pension fund will not be possible. As such, you will find the entire amounts as per 12% contribution in the provident fund.
If the employee is in receipt of pension at the age of 58 years then it is not an issue. There are organizations who have settled both pension and PF at the time of final retirement (60 yrs) and do not stop depositing EPS share to EPS account from 58 to 60 years are facing problem to settle the amount already deposited for the period 58 years to 60 years to EPS account.
One of our client has not noticed the circular I have enclosed already and deposited money to EPS fund by mistake. In the month of November,2018 they have somehow noticed the circular and stop depositing entire contribution to PF account only. One of the employee of such organization has been resigned and claimed through EPFO portal for settlement of PF dues. His claim has been rejected with the plea for discontinuing contribution to EPS account. While talking to the concerned PF office it appears that the PRO, concerned dealing assistant are not at all aware of the circular. They advised to write a letter to EPFO enclosing the circular which has been done but yet to get reply from EPFO. This is reality.
S K Bandyopadhyay
+91 98310 81531

Please ignore the word "stop" in the sentence ""In the month of November ,2018 they have somehow noticed the circular and stop .........."".
Inconvenience caused if any is highly regretted.
S K Bandyopadhyay ( WB, Howrah)
+91 98310 81531

An employee can also defer the collection of pension after 58 years for two years either by contributing to EPS or without contributing to EPS. In such cases the pension will also be increased by 4%. in order to avail this a joint declaration is also required to be furnished. Otherwise, the amount paid to EPS will be considered as paid by mistake and the EPFO will certainly transfer the same to PF account by putting necessary entries in the accounts.
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