Dear Seniors, I have a doubt regarding EPF & EPS. In my company, PF is deducting more than the wage ceiling. For example, my Basic is ₹10,000, then PF deduction is ₹1,200 from my side and another ₹1,200 from the employer's side. The employer's amount will split into two parts as EPF & EPS, i.e., 3.67% (₹367) & 8.33% (₹833). Now, my questions are:
1) The EPS ceiling limit is ₹541, so the remaining ₹292 will automatically go to EPF. Is this correct?
2) How can I withdraw the EPS amount after completing 9.5 years? What are the rules to get a pension after 9.5 years of service?
Please provide your inputs.
Thanks
From India, Hyderabad
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21) The EPS ceiling limit is ₹541, so the remaining ₹292 will automatically go to EPF. Is this correct?
2) How can I withdraw the EPS amount after completing 9.5 years? What are the rules to get a pension after 9.5 years of service?
Please provide your inputs.
Thanks
From India, Hyderabad
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If the employer contribution to EPF is Rs. 1200, Rs. 541 will only be paid to EPS. The balance, the full amount viz. Rs. 659, will be credited to your PF account.
Pension Eligibility and Conditions
You will get a pension from the date of completion of 58 years of age even if you are in service. To get the pension before attaining 58 years, there are some conditions:
1) You should not be in (PF applicable) service.
2) You will get a pension only after attaining 50 years.
3) For each year below 58 years, you will lose 4% of the pensionable amount.
Regards,
Abbas. P. S.
From India, Bangalore
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Pension Eligibility and Conditions
You will get a pension from the date of completion of 58 years of age even if you are in service. To get the pension before attaining 58 years, there are some conditions:
1) You should not be in (PF applicable) service.
2) You will get a pension only after attaining 50 years.
3) For each year below 58 years, you will lose 4% of the pensionable amount.
Regards,
Abbas. P. S.
From India, Bangalore
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Dear abbas Thanx for ur inputs. Is there any chance to withdraw EPS amount after completion of 9.5 yrs. How many years he will get pension after 58 yrs?
From India, Hyderabad
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From India, Hyderabad
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Pension Options After 9.5 Years of Service
After completing 9.5 years, you have no option other than availing of the pension. Once you avail of the pension, it will continue until the death of the member. After death, the widow or widower will receive 50% of the member's pension. Additionally, two children will each receive 25% of the widow's pension until they reach the age of 25.
Regards,
Abbas. P. S
From India, Bangalore
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After completing 9.5 years, you have no option other than availing of the pension. Once you avail of the pension, it will continue until the death of the member. After death, the widow or widower will receive 50% of the member's pension. Additionally, two children will each receive 25% of the widow's pension until they reach the age of 25.
Regards,
Abbas. P. S
From India, Bangalore
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Dear Abbas, If an employee complete his 10 yrs service in one company at the age of 40 still he continuing service in another company shall we deduct EPS from him?
From India, Hyderabad
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From India, Hyderabad
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sir, what if any employee wants to withdraw his epf and eps. can any employee withdraw epf and eps after completion of 9.5 years of his/her service or more than 10 years of service?????
From India, Delhi
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From India, Delhi
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Dear Suni, Yes, For those who are in service who didn’t avail pension and didn’t attain an age of 58years have to pay the share to EPS. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear Jeewan Chandra, There is no option to get withdrawal benefit from EPS after completion of 9 years and six months, other than avail pension. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Thank you very much for your inputs. One more doubt I have to clear. In my company, we are deducting PF more than the wage ceiling. For example, if the basic is ₹10,000, then the PF deduction from the employee is ₹1,200. If we apply the wage ceiling for all employees, the maximum PF amount comes to ₹780 per side. Now, my question is:
Calculating PF Under the Wage Ceiling
1) If the basic is ₹10,000 and the LOP days are 1, then how do we calculate PF under the wage ceiling?
- Is it 6500*12/100=780 or 6500/31*30*12/100=754? Which one is correct?
Thank you.
From India, Hyderabad
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Calculating PF Under the Wage Ceiling
1) If the basic is ₹10,000 and the LOP days are 1, then how do we calculate PF under the wage ceiling?
- Is it 6500*12/100=780 or 6500/31*30*12/100=754? Which one is correct?
Thank you.
From India, Hyderabad
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Instead of using the actual salary to calculate PF contribution, if you are considering the ceiling salary for deduction, then you should treat the ceiling salary as the actual salary. Therefore, if there is LWOP, the salary will be reduced (below ₹6,500) and the contribution should also be reduced accordingly.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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Dear Abbas, I would like to confirm which of the following calculations is correct:
If the basic salary is Rs. 10,000/- and the Loss of Pay (LOP) is for one day, then the basic salary would be Rs. 9,677/-.
For the PF Calculation:
- Option 1: 6500 * 12 / 100 = 780
- Option 2: 6500 / 31 * 30 * 12 / 100 = 754
Please review and let me know if you need any further clarification.
Thank you.
From India, Hyderabad
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If the basic salary is Rs. 10,000/- and the Loss of Pay (LOP) is for one day, then the basic salary would be Rs. 9,677/-.
For the PF Calculation:
- Option 1: 6500 * 12 / 100 = 780
- Option 2: 6500 / 31 * 30 * 12 / 100 = 754
Please review and let me know if you need any further clarification.
Thank you.
From India, Hyderabad
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Sir, what if an employee wants to withdraw his EPF and EPS? Can an employee withdraw EPF and EPS after completing 9.5 years of his/her service or more than 10 years of service?
Thank you, sir, for updating me. I have another question:
EPFO Registration in Multiple States
If a company is registered under EPFO and has its Establishment code already, and if the company runs its business in different states, should the company apply for another code from the sub-regional EPFO office of the states where the company is running business, or should it contribute its dues to its first code? Please clarify.
Regards
From India, Delhi
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Thank you, sir, for updating me. I have another question:
EPFO Registration in Multiple States
If a company is registered under EPFO and has its Establishment code already, and if the company runs its business in different states, should the company apply for another code from the sub-regional EPFO office of the states where the company is running business, or should it contribute its dues to its first code? Please clarify.
Regards
From India, Delhi
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PF WITHDRAWAL RULES.zip
PF Pension fund contribution beyond 58 years of age.pdf