Is an Employee with a Salary Over Rs. 18,700 Eligible for EPS '95 Membership? Seeking Expert Insights

Sir/Madam, I will be grateful to the experts to enlighten me on a view with sections and case laws, if any, in support:

If an employee receives a total salary (excluding HRA) of Rs. 18,700/- or more (Basic - 8,800/- + HRA - 3,300/- + Conveyance Allowance - 3,300/- + Medical Allowance - 3,300/- + City Compensatory Allowance - 3,300/-), will he be eligible to be a member of EPS'95 (Employees Pension Scheme'95) under EPFO? Here, both employer and employee agree on PF and Pension contributions.

His date of joining in his first employment was in February '21.

Thanks.

P. Bagchi

If this is his/her first employment, or if he/she is not a member of EPF, then the pension is not applicable. Both EPF and EPS shall be contributed to EPF only.

Family Pension under EPS '95 for Higher Salaried Employees

Someone is saying that for higher salaried employees, if PF is deducted at 12% up to the PF capping limit of 15,000/-, then Family Pension under EPS '95 is compulsorily applicable at 8.33% up to that capping amount (15,000/-) by default.

Is it true? If so, please confirm, and it would also be helpful if I could get any rule, law, section, case law, etc., in support of this view.

Under EPS:

- Contribution is payable out of the employer's share of PF, and no contribution is payable by the employee.

- Pension contribution not to be paid:

When an employee crosses 58 years of age and is in service (EPS membership ceases on completion of 58 years). When an EPS pensioner is drawing a Reduced Pension and re-joins as an employee, in both cases, the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension contribution is not to be diverted, and the total employer share goes to the PF). In case an employee, who is not an existing EPF/EP member, joins on or after 01-09-2014 with wages above Rs 15,000/-, in these cases, the pension contribution part will be added to the employee's share, EPF.