Can We Stop EPS Contributions After 10 Years of Service? Seeking Guidance on Process

Dear Experts,

One of our employees has completed 10 years of service (Superannuation period) in our company, and he has had EPF & EPS contributions for 10 years. Can I stop paying EPS contributions to EPFO for that particular employee? This means that up until now, we have paid 12% from the employee's salary to the PF account, 3.67% from the employer to the PF account, and 8.33% from the employer to the Pension account.

Proposed Process for Stopping EPS Contributions

If I stop paying EPS contributions, the process would be as follows:
- 12% from the employee's salary to the PF account
- 12% from the employer to the PF account

Is this the correct process to follow? Please suggest and provide your valuable support.

Thank you.

Regards,
Durgarao

Dear Durgarao,

Who told you that 10 years of service is the superannuation period? 10 years is the minimum service for eligibility for a pension. Superannuation is the completion of 58 years of age. If the employee has attained 58 years of age, you have to cease the contribution to EPS, and full contribution is to be paid to EPF. If not, there is no provision to discontinue from EPS until relieving from service.

Abbas.P.S