Member not eligible to become member of EPS,1995 - as an employer can we contribute 12% of 15,000 towards EPF Only?

Team, Suppose a new employee is joined having a salary more than the threshold limit of 15,000 under EPFO (Not eligible under EPS 1995), as an employer can we contribute 12% of 15,000 towards EPF Only?

Salary of employee = 17000

EPF contribution by employee = 12% of 17000 = 2040

EPF contribution by employer = 12% of 15,000 = 1800 (EPF wage restricted to 15,000)

EPS contribution by the employer - Nil

Rgds

Kiran Raj

Hello Friend,

Employer contribution 12% divide in two parts..

1. 8.33% in EPS
2. 3.67% in EPF

This Employer 12% included EPS contribution too..

If the employee joining first time and earlier was not member of EPS & the salary is more than 15,000/- per month - then the employee is not member of EPS. Entire 12% of employer contribution will be in EPF account only.

If the salary is 17,000/- both the employee and employer contribution may be on 17,000/- . It may be again restricted up to 15,000/- both for employer and employee.

If employee is interested to contribute more as voluntary contribution , the employee can do so.

Under any circumstances there will be no contribution to EPS if the employees is fresher.

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If the employee joining first time and earlier was not member of EPS & the salary is more than 15,000/- per month - then the employee is not member of EPS. Entire 12% of employer contribution will be in EPF account only.

In 2014 PF department issue one circular in this regard. Those who are drawing more than 15000/- not eligible for EPS.

Effect of EPF notification with effect from September 2014. (Notification is attached)

According to the PF notification, if any employee becomes a member of provident fund scheme for the first time after 01 September 2014 and his salary at the time of becoming a member is more than Rs 15000/- then he will only become an EPF member but not a member of EPS .