EPS Contributions Dilemma: How to Handle Remittances for Employees Over the Wage Ceiling?

Can we remit contributions to their EPS account in EPS even though some employees have been members of EPS earlier, but their previous employer hasn't remitted the amount to their EPS account? Moreover, their wages exceed the ceiling limit as defined in EPFO.

I believe that the employee in question joined sometime after September 1, 2014. At the time of joining, his salary was above Rs 15,000. Therefore, the then-employer did not cover him under EPS, but the entire contribution of 12% payable by him was paid to EPF along with the employee's contribution of 12%. Now he has changed jobs and joined your company. His salary is still higher than Rs 15,000. Your question is: can you pay the contribution payable (8.33%) to the pension fund? The answer is NO. You can continue with PF, with the same UAN, and you can pay your contribution exclusively to the Provident Fund only. Very simple, an employee who joined after September 1, 2014, whose salary exceeds Rs 15,000, cannot be a member of the Pension Scheme.

As per the original post, some employees were members of EPS. However, the previous employer had stopped depositing EPS contributions when their salaries crossed 15k per month, even though they were EPS members. Once an employee becomes a member of EPS with eligibility limits and has continuous service, the contributions cannot be discontinued even if the salary exceeds 15k per month.

In this case, the previous employer mistakenly ceased depositing contributions to EPS because the employees' salaries were above 15k per month at the time of joining. This is a complex issue, and I suggest reaching out to the local EPFO Office for clarification and an action plan.

Regards, S K Bandyopadhyay

Dear Nanu, I think it was not by mistake, but as I have put in, since the employee's salary was above Rs 15,000, the previous employer gave him PF on the grounds that it is a good investment for the employee as part of employee welfare but did not contribute to PS as it was not possible then. Anyway, Prashant has to clarify the things. Let us wait....