PF - Employer Share - All to EPF and none to Pension

Hi,

I downloaded my EPF passbook and it shows that my employer contributes the entire deduction (entire matched amount) to EPF and 0 towards Pension.

Is this legal? Are there any pros and cons of doing this, from an employee's point of view, and then why may they be doing it? It's been going on for some time, as per the entries in my passbook.

My previous employer put a higher amount in Pension and a lower amount in EPF, but they split it every single time. Is this better or is the one going on better?

Regards

If your previous employer has contributed to Pension Fund, your current employer should also continue contributing to Pension Fund even if your salary exceeds Rs 15000. Whether to contribute on salary higher than Rs 15000 or not is a decision to be taken by the employer and unless you had a word about it as a part of your contract of employment, the employer's act of contributing it on Rs 15000 (that is Rs 1800 per month) is unquestionable. But when he does so, he should have contributed Rs 1250 to Pension Fund and the remaining (Rs 550) of his (employer's) contribution to Provident Fund along with your contribution of Rs 1800.

Please check whether you had informed the employer of your contribution to Pension fund in your earlier company or not. Please see if you had given form 11 of EPF declaring your existence of PF account with Universal Account Number and other details.

If you had joined after 1st September 2014, then you are not entitled to get Pension. In such cases, if your employer (previous) had contributed to pension fund, that act should be void. In that case also, the amount contributed to Pension Fund will be diverted back to your Provident Fund.

Hi,

The last employer contributed 550 to PF and 1250 to pension.

The current one sends the entire 1800 to PF and nothing to pension.

Also, the current one started doing it a couple of months after I joined. The first few months, they contributed 550 to PF and 1250 to pension. Now, its all to PF.

I don't understand the why's and why not. Is there any benefit of doing it this way, either to the employer or the employee - when you send the whole amount into PF?

Regards

You did not give me the answer to my question, whether your date of joining Pf is later than 1st Sept 2014?

Have you at least tried reaching out to the HR or Payroll team to get a clarification before second-gussing them and asking us?

Yes, I did not. I started after September 2014

Neither did you. Why does one organization split the amount, while the other does for a while, and then doesn't all of a sudden? Is it beneficial to either them or me, this way?

Then, you say, post-2014 entrants aren't entitled to pension, then why was 1250 going into it - not just from the last one but for a little while from the current one as well?

This just makes everything seem VERY DICEY!!!

Dear EmployeeHere.
You are totally confused pls contact with your HR Department they will justify each and everything.

Hi Alok,

HR or finance didn't help. Neither could they justify/clarify anything. Why do you think I am here?

Regards

Your first organisation did an error in depositing their contribution. You are not eligible for pension but you can get that Rs 1250 wrongly paid to Pension fund and that will be redirected to your pension fund. It is only a clerical error.

Quote :
Hi Alok,

HR or finance didn't help. Neither could they justify/clarify anything. Why do you think I am here?

Regards
UnQuote

How exactly do you expect us to know whether you did ask them and what reply did they give? If you gave a rude reply, then you will not get a response from members. It is surprising they did not give the reply. Can you share what was their response?

Also, if you have your Form 11 filled when you joined the company, please share the same (if possible)

As for the original problem, you can get the balance amount transferred to the PF account from pension account. Also, there is a new notification allowing employees to opt for NPS if they wish, you may check the same and decide your course of action