EPS eligibility after 1st Sept,2014 for which EPS cont. deposited regularly

Dear Sir/Madam,

we have deducted and deposited EPS of employees joined after 1st Sept,2014, while as per circular they can't be the member of EPS if their salary is above 15,000/- . Employees are working with us till now.

Kindly advise whether these employees are considered to be member of EPS even their salary excess of 15,000/-
at the time of UAN registration portal was not asking the salary details.

Regards,
Sanjay Garg

If at the time of joining ( 1st employment), the PF monthly gross is more than 15,000/- per month on or after 01.09.2014, the employee is not eligible for EPS membership. If by mistake it has been deposited, the employee will not be eligible for pension or any family pension.

Stop depositing EPS contribution talking to your PF office and submit one application to transfer the EPS amount already deposited to PF account.

S K Bandyopadhyay( WB, Howrah)
CEO-USD HR Solutions

In respect of a covered employee who have been contributing to Pension Fund, the same will continue even if his salary is above Rs 15000. But contribution to Pension fund will be limited to 8.33% of R 15000. At the same time, in respect of a new employee no contribution can be made to Pension Fund if the salary is more than Rs 15000. Obviously, there is no restriction to become a member of Provident Fund and contributing to PF. However, if the employer decides that such an employee whose salary is above Rs 15000 at the time of joining is to be excluded from PF he can do so. Alternatively, if considering PF as an investment and part of CTC the employer is contributing to PF, then he can deposit the entire 12% to PF without bifurcating it to Pension Fund and PF at 8.33% and 3.67% respectively. In such cases if, by oversight, you have deposited 8.33% in pension Fund, that will be reverted to Provident Fund.

If you have been contributing to Provident Fund not on actual salary paid which can be above Rs 15000 but have the practice of restricting the PF to the required rate (12%) on Rs 15000, then the above rule of not depositing to Pension Fund does not arise. In that case PF qualifying salary being Rs 15000, the employee would come under Pension bracket as well.