Dear friends, Pl find attached: 1. An article on impact of increase of EPF ceiling from Rs.6,500 to Rs.15,000 2. FAQs on employee under EPF Act to be published in Labour Law Reporter. Thanks
From India, Malappuram
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1446From India, Malappuram
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Dear All, Is TDS applicable on DA ( Daily Allowance ) Paid to employee. Please suggest.
From India, Gurgaon
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From India, Gurgaon
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Dear Mr. Agarwal,
It is indeed an excellent article regarding the increase of the EPF ceiling from Rs. 6,500 to Rs. 15,000 and FAQs on employees under EPF. This will help young HR Managers to manage their EPF accounts.
From India, Calcutta
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It is indeed an excellent article regarding the increase of the EPF ceiling from Rs. 6,500 to Rs. 15,000 and FAQs on employees under EPF. This will help young HR Managers to manage their EPF accounts.
From India, Calcutta
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Dear Agarwal ji,
Thank you very much for sharing the insightful articles on the impact of recent amendments to PF. One point I would like to bring to the notice of our friends is that the EDLI benefit is calculated at 20 times the ceiling limit of Rs15,000/-, i.e., Rs 3 lakhs plus an additional 20%, which makes it a 3.6 lakhs benefit.
I stand corrected if any of my colleagues have a different viewpoint.
Sincerely,
Ashok Reddy
From India, Hyderabad
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Thank you very much for sharing the insightful articles on the impact of recent amendments to PF. One point I would like to bring to the notice of our friends is that the EDLI benefit is calculated at 20 times the ceiling limit of Rs15,000/-, i.e., Rs 3 lakhs plus an additional 20%, which makes it a 3.6 lakhs benefit.
I stand corrected if any of my colleagues have a different viewpoint.
Sincerely,
Ashok Reddy
From India, Hyderabad
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Dear friends,
I also agree with Ashok Reddy regarding EDLI benefit. Apart from this, there are errors in paragraphs F, L, M & N.
1. In Para F, it is stated that Those who want to contribute above Rs.15,000/ for pension fund will have to shell out 1.16% additional contribution on the amount in excess of Rs.15,000/ from employees share & give declaration (both employer & employee) to that effect within 06 months from the date of this notification failing which any additional contribution made above Rs.15,000/ to pension fund would be diverted to EPF fund & will be given the interest as declared from time to time."
EPFO has stated that from 01.09.2014 on wards there will not be any provision to opt to contribute beyond ceiling limit to EPS. Those who already opted this provision before 31.08.2014 will only come under the purview of this clause .
2. As per Para L," If the service is below 10 years of service & has not attained the age of 58 years, can withdraw the pension amount or obtain certificate to that effect & resume the count of service in future, if the employee joins for the employment service covered under EPF&MP Act,1952".
There is no significance on age to get withdrawal benefit. If the service is 10 years or more, member will be entitled to get pension, other wise withdrawal benefit can be availed regardless of age.
3.As per Para M, "Pensionable salary up to 31st Aug’14 will be Rs.6,500/ thereafter it will be Rs.15,000/ till further amendment."
After 31st Aug 2014 pensionable salary will be in between 6500 and 15000 till July 2019. When a member complete 60 months (i.e Sept 2014 to Aug 2019) after 01.09.2014, then only pensionable salary will be 15000.
4. As per Para N, "If the Employee’s Pension contribution is restricted to Rs.15,000/ then the maximum pension at the age of 58 years shall not be more than Rs.15,000/ p.m as on date. Hitherto it was Rs.6,500/ p.m."
The cap is not on pension amount but pensionable salary. For those contribute on ceiling salary of 15000, there should be 68 years' service to get a pension of 15000. This is impossible.
Abbas.P.S
ITI Ltd.,
PALAKKAD.
From India, Bangalore
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I also agree with Ashok Reddy regarding EDLI benefit. Apart from this, there are errors in paragraphs F, L, M & N.
1. In Para F, it is stated that Those who want to contribute above Rs.15,000/ for pension fund will have to shell out 1.16% additional contribution on the amount in excess of Rs.15,000/ from employees share & give declaration (both employer & employee) to that effect within 06 months from the date of this notification failing which any additional contribution made above Rs.15,000/ to pension fund would be diverted to EPF fund & will be given the interest as declared from time to time."
EPFO has stated that from 01.09.2014 on wards there will not be any provision to opt to contribute beyond ceiling limit to EPS. Those who already opted this provision before 31.08.2014 will only come under the purview of this clause .
2. As per Para L," If the service is below 10 years of service & has not attained the age of 58 years, can withdraw the pension amount or obtain certificate to that effect & resume the count of service in future, if the employee joins for the employment service covered under EPF&MP Act,1952".
There is no significance on age to get withdrawal benefit. If the service is 10 years or more, member will be entitled to get pension, other wise withdrawal benefit can be availed regardless of age.
3.As per Para M, "Pensionable salary up to 31st Aug’14 will be Rs.6,500/ thereafter it will be Rs.15,000/ till further amendment."
After 31st Aug 2014 pensionable salary will be in between 6500 and 15000 till July 2019. When a member complete 60 months (i.e Sept 2014 to Aug 2019) after 01.09.2014, then only pensionable salary will be 15000.
4. As per Para N, "If the Employee’s Pension contribution is restricted to Rs.15,000/ then the maximum pension at the age of 58 years shall not be more than Rs.15,000/ p.m as on date. Hitherto it was Rs.6,500/ p.m."
The cap is not on pension amount but pensionable salary. For those contribute on ceiling salary of 15000, there should be 68 years' service to get a pension of 15000. This is impossible.
Abbas.P.S
ITI Ltd.,
PALAKKAD.
From India, Bangalore
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Very Usful information, Pl tell me if any employee service is more than 10years is there any extra benefits in the pension scheme. - anandgmysore.
From India, Bangalore
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From India, Bangalore
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Dear Anand,
The minimum eligibility to receive a pension is 10 years of service. Those who complete 20 years and are relieved from service after the age of 58 years will receive an additional 2 years as a bonus.
Abbas.P.S
From India, Bangalore
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The minimum eligibility to receive a pension is 10 years of service. Those who complete 20 years and are relieved from service after the age of 58 years will receive an additional 2 years as a bonus.
Abbas.P.S
From India, Bangalore
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I have been contributing to PF for the last 16 years and have transferred it whenever there was a change in company. While downloading my current PF statement through the EPF site, the pension contribution in the transfer row is not shown. The PF transferred amount is okay. How can I find out my pension amount? Can I consider it as the difference between the employee and employer share of the transfer amount? I have read that the minimum pension is Rs. 1000/-; what about the maximum pension one can receive and how is it calculated? Please explain with an example.
From India, Chandigarh
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From India, Chandigarh
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Sir, If the company is giving incentive on monthly basis and in every month it will change. Can P.F. will calulate on this amount also
From India, Salai
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From India, Salai
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Extremely Useful Information Sir, Kindly let me know about the source website from which this articles have been extracted by you . Awaiting for response
From India, Mumbai
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From India, Mumbai
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Hi,
To have a fundamental understanding of the new PF rule, I want to know whether the maximum deduction for an employee is set at 12% of 15000 or 12% of the basic salary. Kindly clarify this for me in my case, where the Basic is 16420, AGP is 6000, and PF is 10089.
If the limit is set to 12% of 15000, am I allowed to add voluntary PF to the deducted amount?
Thanks in advance.
Regards,
Karthikeyan
From India, Trichy
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To have a fundamental understanding of the new PF rule, I want to know whether the maximum deduction for an employee is set at 12% of 15000 or 12% of the basic salary. Kindly clarify this for me in my case, where the Basic is 16420, AGP is 6000, and PF is 10089.
If the limit is set to 12% of 15000, am I allowed to add voluntary PF to the deducted amount?
Thanks in advance.
Regards,
Karthikeyan
From India, Trichy
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Sorry all, its not the PF thats 10089, its the DA. Regards, Karthikeyan
From India, Trichy
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From India, Trichy
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Dear Mr. Naveen,
You are correct that the statement of account in Form No. 23 shall reflect only towards Provident Fund of both employees and employers' contributions. But nowhere in the scheme does the amount of contribution by the employer towards EPS indicate. This is because this is a Head of account maintained by the EPFO under the EPS scheme. Irrespective of anybody's contributions, the pension amount will be paid to the employee only after attaining the age of 58 years after retirement from services. Earlier, there was no minimum; now, the minimum is fixed at 1000. If an employee is getting less than this as per the formula, then it will be applicable as 1000. The maximum pension shall be arrived at only after the retirement of the employee, subject to his pensionable service and pensionable salary. A formula has been made by the EPFO for this purpose. Based on this formula, the pension is being fixed and paid to the employee until his/her death, and afterwards, to his/her nominee as per the option mentioned in Form No. 10D of the scheme.
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels) Rtd
Labour Laws Consultant
From India, Bidar
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You are correct that the statement of account in Form No. 23 shall reflect only towards Provident Fund of both employees and employers' contributions. But nowhere in the scheme does the amount of contribution by the employer towards EPS indicate. This is because this is a Head of account maintained by the EPFO under the EPS scheme. Irrespective of anybody's contributions, the pension amount will be paid to the employee only after attaining the age of 58 years after retirement from services. Earlier, there was no minimum; now, the minimum is fixed at 1000. If an employee is getting less than this as per the formula, then it will be applicable as 1000. The maximum pension shall be arrived at only after the retirement of the employee, subject to his pensionable service and pensionable salary. A formula has been made by the EPFO for this purpose. Based on this formula, the pension is being fixed and paid to the employee until his/her death, and afterwards, to his/her nominee as per the option mentioned in Form No. 10D of the scheme.
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels) Rtd
Labour Laws Consultant
From India, Bidar
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In view of the recent judgment by the Honorable Supreme Court of India: what is the legal position for the calculation of pension if an employee's actual salary has been above Rs. 15,000? Will it benefit employees who have retired and withdrawn their PF contribution?
Please let me know if you need further assistance or clarification on this matter.
From United Kingdom, Bedford
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Please let me know if you need further assistance or clarification on this matter.
From United Kingdom, Bedford
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Dear GAURN SRT,
For PF members and retired and settled past members who are eligible to contribute on full salary to the pension fund, provided their contribution to PF is/was beyond the ceiling limit. Normally, it will be beneficial to members.
Abbas. P. S
From India, Bangalore
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For PF members and retired and settled past members who are eligible to contribute on full salary to the pension fund, provided their contribution to PF is/was beyond the ceiling limit. Normally, it will be beneficial to members.
Abbas. P. S
From India, Bangalore
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