Confused About PF Rules for New Employees? Seeking Guidance on EPS Eligibility and Employer Practices

Hi Seniors, I am working as an HR executive in a private organization. My query is regarding the PF rule of September 2014. If an employee who is not a PF subscriber joins after September 1, 2014, and their basic salary is more than 15,000, then they are not eligible for EPS.

My present employer is not following this rule. He is contributing to the EPS for new employees. I am in a dilemma about whether this is correct or wrong. If it is wrong, please suggest to me how the calculation should be done and what I should do in that case.

Dear Veekkas,

Please provide details of PF remittance to verify the accuracy of entry-level EPF wages. Could you confirm the EPS contribution and whether the employee in question has recently become a member of EPF?

Thank you.

Hi Srinath,

Thank you for your reply.

For new employees (who were not PF members previously), the PF contribution is 1800 as their basic is more than 15k. The employer's contribution is divided into EPF and EPS, totaling 550 + 1250.

My question is: Is it correct to divide the employer's amount in this way for new employees, considering they are not eligible for EPS as per the September 1, 2014 notification?

Dear Veekkas & Sandi Joshi, please note that based on the information furnished by Veekkas, the employee's share of PF contribution is Rs. 1,800 (EPF Wages Rs. 15,000). Admitting that the employee has become a PF member fresh/first time.

Employer share of PF Contribution

EPF - 550, EPS - 1250. This is perfectly in order. Please peruse the notification to which you are referring once again.

If the employee's EPF wages were more than Rs. 15,000 and EPF contribution was more than Rs. 1,800, then it would have amounted to a violation of circulation. But in this case, it is perfectly in order.