Confused About EPF and EPS Contributions? Seeking Clarity on Employer Obligations

"My basic salary is ₹65,600, but as per company policy, my employer only contributes to EPF based on ₹15,000. In this case, is my employer required to contribute to the Employee Pension Scheme (EPS), or can the entire amount be transferred to EPF? Please advise."

In these days, many EPF transfers and claims are being rejected. The reason is that your employer is considered as a non-pension member or a pension member. Kindly check with the EPF Office, inform your employer, and submit the revised Form 3A and a clarification letter to the EPF Office.

If your basic salary is less than ₹15,000 and you are younger than 58 years, then your employer must contribute to EPS.

If you are an existing member of the pension fund, the employer is bound to divide his contribution of Rs 1800 (12% of Rs 15000) as Rs 1250 to the Pension Fund and the balance to your EPF.

At the same time, if you are not an existing member of EPS, and you became a member of EPF after September 2014, the employer need not contribute to the pension fund but can contribute the entire amount of his contribution to PF alone.