Dear Professionals,
I have a query and would like to seek clarity on the following matter regarding the deduction of the PF amount. The ceiling amount for PF deduction is Rs. 15,000/-, where Rs. 1800/- is to be deducted from the employees. The employer must split this amount into two parts: Rs. 1250/- for Pension (8.33%) and Rs. 550/- (3.67%) for PF.
Scenario for PF Deduction Above Rs. 15,000/-
If we consider a scenario where the amount is above Rs. 15,000/-, say Rs. 20,000/-, the calculation should be as follows:
Employees Share Employer Share Total EE+ER
EPF EPS EPF
12% 8.33% 3.67%
Rs. 2400/- Rs. 1666/- Rs. 734/- = Rs. 2400/- (Incorrect)
Rs. 2400/- Rs. 1250/- Rs. 1150/- = Rs. 2400/- (Correct)
Is it the correct assessment that the EPS contribution paid by the employer is restricted up to Rs. 1250/- and then transferred to PF?
From India, Mumbai
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1I have a query and would like to seek clarity on the following matter regarding the deduction of the PF amount. The ceiling amount for PF deduction is Rs. 15,000/-, where Rs. 1800/- is to be deducted from the employees. The employer must split this amount into two parts: Rs. 1250/- for Pension (8.33%) and Rs. 550/- (3.67%) for PF.
Scenario for PF Deduction Above Rs. 15,000/-
If we consider a scenario where the amount is above Rs. 15,000/-, say Rs. 20,000/-, the calculation should be as follows:
Employees Share Employer Share Total EE+ER
EPF EPS EPF
12% 8.33% 3.67%
Rs. 2400/- Rs. 1666/- Rs. 734/- = Rs. 2400/- (Incorrect)
Rs. 2400/- Rs. 1250/- Rs. 1150/- = Rs. 2400/- (Correct)
Is it the correct assessment that the EPS contribution paid by the employer is restricted up to Rs. 1250/- and then transferred to PF?
From India, Mumbai
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EPS Contribution Limitations
The EPS contribution is restricted to Rs. 1250 even if your employer is contributing based on the actual salary, which is higher than Rs. 15,000. Therefore, if your employer is contributing 12% on Rs. 20,000, then only Rs. 1250 will go to the Pension, and the remaining Rs. 1150 should be deposited into the Provident Fund along with the employee's share of Rs. 2400.
From India, Kannur
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The EPS contribution is restricted to Rs. 1250 even if your employer is contributing based on the actual salary, which is higher than Rs. 15,000. Therefore, if your employer is contributing 12% on Rs. 20,000, then only Rs. 1250 will go to the Pension, and the remaining Rs. 1150 should be deposited into the Provident Fund along with the employee's share of Rs. 2400.
From India, Kannur
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Employer-PF-res trict to wages of Rs 6500.pdf