Can Board Directors Have Their Salaries Deducted for the Employees' Pension Scheme?

Dear All,

Can the Employees' Pension Scheme (EPS) be deducted from the salary of the Board of Directors?

Dear Saiyad,

EPS can be part of your CTC but cannot be deducted from any employee's salary; it has to be contributed as an employer contribution only.

Thank you.

No contribution to the pension fund is deducted from the salary of any person. It is paid by the employer.

Dear Saiyad Waseem,

If the Board of Directors is members of the Provident Fund, you must be deducting Provident Fund contributions from their remunerations. If so, naturally, you are paying the matching employer's contribution to PF. The employer's contribution that you pay on behalf of the employees takes care of the Employee's Family Pension part, which is a maximum of 8.33% of Rs. 15,000/-, i.e., Rs. 1,250/-, and the rest amount is credited to the employees' PF account.

Regards,
Suresh