Is contribution to the pension fund mandatory if the basic salary is more than Rs. 15,000/-?

Is contribution to the pension fund mandatory if the basic salary is more than Rs. 15,000/- and the Provident Fund contribution amount is higher than Rs. 1800/- per month?

Pension Fund Contribution Rules

In respect of employees who joined later than September 2014, contribution to the Pension Fund is not required. However, for employees who became PF members earlier than September 2014, you must contribute to the Pension Fund even if their salary exceeds Rs 15,000. This rule applies to new employees joining your establishment who were PF members before September 2014.

Hi, Some amendments took place with effect from September 2014.

Pension Contribution for Employees Joined Before September 2014

If the Date of Joining (DOJ) of the employee is before September 2014 and the employee is already a contributing member to PF/Pension, then the current employer should continue to contribute to the pension even if the PF wages exceed Rs. 15,000.

Pension Contribution for Employees Joined After September 2014

For employees who joined employment after September 2014 with no PF history, they are not eligible for pension contributions. Please note that the PF Pension contribution ceiling is limited to Rs. 1,250. Any contributions exceeding Rs. 1,250 should be credited to the PF account.

Thank you. If the UAN number is created after September 2014, and the provident fund contribution is higher than Rs. 1800 (as 12% of the complete basic amount is considered for PF contribution by the organization) and also contributions towards the pension fund are made, is this correct? If not, how can I correct it? I am facing problems transferring my previous company's PF to my current company.

Resolving Technical Errors with Previous Employers

This issue should be addressed by the previous employer, as it is merely a technical error. You can write to the employer to request that they take the necessary action. If they do not respond, you may involve the Provident Fund Organisation (PFO). Although it is a complicated matter for us, the Employees' Provident Fund Organisation (EPFO) can resolve it easily. However, they may not do so because they tend to prioritize their own interests over those of the members, who are the beneficiaries. This situation has worsened due to the setbacks the EPFO has faced from various courts, including the Supreme Court, regarding higher pension verdicts.

From the above discussion, I found one more query. If a person joins after September 2014, let's say in 2024, completely fresh with no EPF membership earlier at all, and has a salary above ₹15,000/-, let's say ₹50,000/- per month, if the employee is willing to be an EPF member voluntarily and the employer also agrees, under such circumstances, is family pension membership compulsory, or can both contributions be deposited only in EPF?

Hi Pramod, the answer to your question is that EPS is not applicable.