Understanding NCP Days: How Do They Affect EPF and EPS Calculations for New and Exiting Employees?

Dear Sir/Madam,

1. Does NCP (Non-Contributory Period) relate to "EPF" or "EPS"?

2. If an employee joins on 16/09/2021 and payday is 15 days in September 2021, is the NCP (Non-Contributory Period) "ZERO" or "15 DAYS"?

3. If an employee exits on 12/09/2021 and payday is 12 days in September 2021, is the NCP (Non-Contributory Period) "ZERO" or "18 DAYS"?

Please do the needful.

Thanks & Regards,
T.Thirumurugan

I think a non-contributory period refers to the period when a person is working for you but has not been paid. So, in that case, the above does not refer to an NCP.

Those will be times when the employee is on leave without pay.

I will wait for inputs from seniors.

Understanding NCP Days in EPF

NCP days refer to the days in which an employee has not contributed to the EPF scheme. For example, if an employee is absent for any reason and their salary is not generated, if an employee leaves one job and joins another after a few days, or if there is any period between two jobs where PF contributions were not made.

Thank you for providing this information.

Dear T. Thirumurugan,

NCP stands for Non-Contributory Period. This term is used when filling out the PF form to indicate the number of days an employee is absent from work in a specific month. It simply means the period for which the employer will not pay the employee due to their absence.

Regards,

R. Rai

An employer who recruits employees on a monthly contract basis depends on the work he gets or tenders allotted. If the employer doesn’t get any contract tender work for two months, then the employer can show zero NCP days for their employees. This is because the employer himself does not have any work where he can deploy the employees.

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Understanding NCP (Non-Contributory Period) in EPS

NCP (Non-Contributory Period) typically relates to the Employees' Pension Scheme (EPS) in India. It refers to the period during which an employee is not contributing to the Employee's Pension Fund.

Example of NCP Calculation

If an employee joins on 16/09/2021 and the payday is 15 days in September 2021, the NCP would be "ZERO" because the employee joined and started contributing to the fund within the same month.

If an employee exits on 12/09/2021 and the payday is 12 days in September 2021, the NCP would be "18 DAYS" because the employee did not contribute to the fund during that month.

Please note that specific calculations may depend on the policies and practices of the employer and relevant labor laws in your jurisdiction. It's always a good idea to consult with a qualified HR or financial expert for precise information.

In both cases (Late DOJ and Early DOL within the month), NCP days should be zero because, as per the Pension calculation sheet by EPFO, they consider the total period of service from the Date of Joining to the Date of Leaving. In this scenario, NCP days are counted as we fill in the ECR upload file. Therefore, for pensioner benefits, it should be ZERO NCP days.

Hi Thirumurgan, It seems like you're asking questions related to employment and payroll terms, particularly in the context of India. Let me address your questions one by one:

NCP (Non-Contributory Period)

This term is not standard or widely recognized in the context of EPF (Employee Provident Fund) or EPS (Employee Pension Scheme) in India. It's possible that this term might be specific to a certain company or organization. Generally, EPF and EPS are parts of the Employee Provident Fund Organization (EPFO) scheme in India, where EPF is a mandatory retirement savings scheme and EPS is a pension scheme.

Employee Joining on 16/09/2021

If an employee joins on 16/09/2021 and the payday is 15 days in September 2021, the NCP would be 15 days. This is because NCP refers to the period before an employee starts making contributions to EPF.

Employee Exiting on 12/09/2021

If an employee exits on 12/09/2021 and the payday is 12 days in September 2021, the NCP would be ZERO days. NCP only occurs when an employee hasn't contributed to the EPF for a certain period before they leave the job. In this case, the employee exited before the payday, so they didn't contribute for that month.

Please note that specific company policies or changes in regulations could affect these calculations. Always consult with a professional or refer to official documents for precise information regarding EPF and related terms.

Regards

Does anybody have a specific format for NCP days that was supposed to be sent along with Form 10D?