Confused About EPF Wages for New Employees? Let's Clarify the 15k vs 20k Dilemma

Dear All,

This is our first month of PF contribution, and we want to follow restricted PF, i.e., a maximum of 1,800 PF contributions.

My Query is:

1. Monthly EPF wages as on joining - One of our employees' gross salary is 40k, and the basic is 20k. Should we mention EPF wages as on joining as 20k, or do we need to mention 15k due to restricted PF? As this is his first-time employment, to exclude from EPS, what EPF wages should be mentioned while adding an employee? Please advise.

2. Another employee is already a UAN holder and a member under EPS; his basic salary is 25k. Do we need to mention 25k or 15k as monthly EPF wages as on joining? Please advise.

Thank you.

Hi,

UAN Registration for First-Time Employment

1. During the UAN registration of the first employee (first-time employment), please update his monthly PF wage as on joining to be 20K so that he will be eligible only for EPF and not EPS. In the monthly contribution (ECR upload), you can show his EPF wages ("employer contribution") as 15,000, and his EPF amount will be 1,800, with EPS at 0.

Handling Existing EPS Members

2. In the second case, you can show his actual PF wage (25K) while registering the employee since he is already under EPS. You can limit the employer contribution to 15,000, with EPF at 1,250 and EPS at 550.

Kiran Raj

Dear Sir,

Thank you for your valuable advice; we will follow accordingly.

Clarification on UAN and EPS

One clarification: How can we know whether an existing UAN holder is under EPS or not? Is there any way to find out? Please advise.

EPF Wages for Existing UAN Members Without EPS

Also, what are the EPF wages to be shown while adding an employee for "existing UAN members without EPS cases"?

Thank you.

Hi, if you do not know whether the existing UAN holder is under EPS or not, please ask him to produce his passbook prior to his current employment. If you find that the member is not availing of the EPS account prior to the current employment, please update his monthly PF wage as on joining to 25K.