Confused About EPS Contribution Rules with 15K EPF Wages? Seeking Advice!

Dear Fraternity,

I need to know about one of our EPS cases. We registered one of our employees with permissible wages of 15,000 for EPF & EPS. However, when generating his EPF challan, an error shows that we need to exclude EPS wages for that particular employee. When we consulted one of our legal colleagues, we received two inputs:

1. If we mark his EPS wages as more than 14,999 a month, the system will not consider his EPS contribution.
2. Or if his previous history shows his Basic as more than 15,000, you also cannot contribute to his EPS.

Upon cross-checking his EPFO history, his first deduction was made without EPS, and he contributed 1800 for Employee EPF and 1800 for Employer EPF.

I appreciate your experienced suggestions on how we should proceed as an employer.

Hi, I need a little clarity on your query. I understand that your current new joiner is facing an issue despite having worked in a previous organization where his basic salary was more than 15,000. According to the new EPF rules, he is considered a pension-excluded employee. Since the UAN (Universal Account Number) remains the same, in your organization as well, he will fall under the pension-excluded category. Therefore, his pension basic should be set to 0, and the employer's contribution should be fully deposited in the EPF account. The pension head should also be set to 0 when uploading the ECR (Electronic Challan-cum-Return).

Thanks.

Dear Concern,

Thank you for your response. As per your previous message, the employee's history indicates that his previous employer excluded his EPS and deposited the full amount in the Employer EPF contribution. Therefore, moving forward, we are unable to contribute to his Pension %.

Dear sir, you can't remit his contribution to the EPS account, so you should remit his 12% contribution to the EPF account only. He will not be eligible for EPS. I have attached a sample for your reference; please follow it.

Dear Mr. Ponmurugapandian,

Please clarify why an employee with EPF wages of Rs 15,000/- per month and below is excluded from EPS. Kindly verify the attachment and respond.

Thank you.

Could you share your error screenshot?

EPS Contribution Eligibility

If someone has a salary of less than 15,000 per month, we can remit it in the EPF & EPS account. If it is equal to 15,000 or more, we can't remit it in EPS.

Dear Mr. Ponmurugan Sir,

Please clarify if EPF wages are Rs 15,000/-, you cannot remit EPS. Please go through the EPS Circular attached herewith. If EPF wages are Rs 15,000/- and below, the employee has to compulsorily become an EPS member. If EPF wages are more than Rs 15,000/- per month and the employee does not have active EPS membership pertaining before September 2014, they cannot become members of EPS.

For your information.

Dear Srinath,

Okay, the only issue here is that there is a chance you may have entered his gross salary as more than ₹15,000 when you submitted your monthly ECR. Please double-check it.

Dear Mr. Ponmurugan Pandian,

Please note there is no limit for Gross Salary. Please make note of your reply: "Okay, only there is a chance for this trouble if you may have entered his gross salary as more than 15,000/- when you submit your monthly ECR. Please check it." EPF contribution is not remitted on Gross Salary.