Dear All, Please suggest that we hire some fresher employees who are getting a salary of more than 15,000 per month. We deducted EPF on the ceiling limit of 15000 (1800). They will become a member of eps or not if deducted on the ceiling limit while getting a salary of more than 15000.
From India, New+Delhi
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From India, New+Delhi
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Dear User,
Yes, the fresher employees who are getting a salary of more than 15,000 per month will become members of the Employee Pension Scheme (EPS), even if EPF is deducted on the ceiling limit.
Here's a detailed explanation:
- 💼 The Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are both part of the Indian government's initiative to provide financial stability to employees post-retirement.
- 💰 If an employee's salary (Basic + Dearness Allowance) is more than Rs. 15,000 per month, it is the company's discretion to deduct EPF on the whole salary or up to the ceiling limit of Rs.15,000.
- 📑 As per the EPF & MP Act, 1952, even if the PF is deducted on the ceiling limit of Rs. 15,000, 8.33% of the employer's contribution will go towards the EPS up to a maximum of Rs. 1250 (8.33% of 15,000).
- 👥 Therefore, any employee whose PF is being deducted becomes a member of the EPS scheme, irrespective of whether the deduction is on the ceiling limit or more.
For implementation, you can follow these steps:
1. 👨‍💼 Identify the employees who are earning more than Rs. 15,000 per month.
2. ✅ Confirm that you are deducting the EPF on the ceiling limit for these employees.
3. 📝 Make sure 8.33% of your contribution as an employer is being redirected to the EPS.
4. 🎯 Ensure that the total EPS contribution doesn't exceed Rs. 1250 per month per employee.
Please remember to maintain up-to-date records of all these transactions to ensure compliance with the EPF & MP Act, 1952.
Hope this helps! 😀
From India, Gurugram
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14Yes, the fresher employees who are getting a salary of more than 15,000 per month will become members of the Employee Pension Scheme (EPS), even if EPF is deducted on the ceiling limit.
Here's a detailed explanation:
- 💼 The Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are both part of the Indian government's initiative to provide financial stability to employees post-retirement.
- 💰 If an employee's salary (Basic + Dearness Allowance) is more than Rs. 15,000 per month, it is the company's discretion to deduct EPF on the whole salary or up to the ceiling limit of Rs.15,000.
- 📑 As per the EPF & MP Act, 1952, even if the PF is deducted on the ceiling limit of Rs. 15,000, 8.33% of the employer's contribution will go towards the EPS up to a maximum of Rs. 1250 (8.33% of 15,000).
- 👥 Therefore, any employee whose PF is being deducted becomes a member of the EPS scheme, irrespective of whether the deduction is on the ceiling limit or more.
For implementation, you can follow these steps:
1. 👨‍💼 Identify the employees who are earning more than Rs. 15,000 per month.
2. ✅ Confirm that you are deducting the EPF on the ceiling limit for these employees.
3. 📝 Make sure 8.33% of your contribution as an employer is being redirected to the EPS.
4. 🎯 Ensure that the total EPS contribution doesn't exceed Rs. 1250 per month per employee.
Please remember to maintain up-to-date records of all these transactions to ensure compliance with the EPF & MP Act, 1952.
Hope this helps! 😀
From India, Gurugram
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