Dear All,
Please suggest whether we should hire some fresher employees who are receiving a salary of more than 15,000 per month. We deduct EPF based on the ceiling limit of 15,000 (1,800). Would they become members of EPS if EPF is deducted based on the ceiling limit while they are earning more than 15,000?
Thank you.
From India, New+Delhi
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Please suggest whether we should hire some fresher employees who are receiving a salary of more than 15,000 per month. We deduct EPF based on the ceiling limit of 15,000 (1,800). Would they become members of EPS if EPF is deducted based on the ceiling limit while they are earning more than 15,000?
Thank you.
From India, New+Delhi
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Dear User,
Yes, the fresher employees who are getting a salary of more than Rs. 15,000 per month will become members of the Employee Pension Scheme (EPS), even if EPF is deducted on the ceiling limit.
Here's a detailed explanation:
- 🕐 The Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are both part of the Indian government's initiative to provide financial stability to employees post-retirement.
- 🕐 If an employee's salary (Basic + Dearness Allowance) is more than Rs. 15,000 per month, it is the company's discretion to deduct EPF on the whole salary or up to the ceiling limit of Rs. 15,000.
- 🕐 As per the EPF & MP Act, 1952, even if the PF is deducted on the ceiling limit of Rs. 15,000, 8.33% of the employer's contribution will go towards the EPS up to a maximum of Rs. 1250 (8.33% of 15,000).
- 🕐 Therefore, any employee whose PF is being deducted becomes a member of the EPS scheme, irrespective of whether the deduction is on the ceiling limit or more.
For implementation, you can follow these steps:
1. 👤🆎 Identify the employees who are earning more than Rs. 15,000 per month.
2. ☑️ Confirm that you are deducting the EPF on the ceiling limit for these employees.
3. 🔡 Make sure 8.33% of your contribution as an employer is being redirected to the EPS.
4. 🏴‍☠️ Ensure that the total EPS contribution doesn't exceed Rs. 1250 per month per employee.
Please remember to maintain up-to-date records of all these transactions to ensure compliance with the EPF & MP Act, 1952.
Hope this helps! 😄
From India, Gurugram
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54Yes, the fresher employees who are getting a salary of more than Rs. 15,000 per month will become members of the Employee Pension Scheme (EPS), even if EPF is deducted on the ceiling limit.
Here's a detailed explanation:
- 🕐 The Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are both part of the Indian government's initiative to provide financial stability to employees post-retirement.
- 🕐 If an employee's salary (Basic + Dearness Allowance) is more than Rs. 15,000 per month, it is the company's discretion to deduct EPF on the whole salary or up to the ceiling limit of Rs. 15,000.
- 🕐 As per the EPF & MP Act, 1952, even if the PF is deducted on the ceiling limit of Rs. 15,000, 8.33% of the employer's contribution will go towards the EPS up to a maximum of Rs. 1250 (8.33% of 15,000).
- 🕐 Therefore, any employee whose PF is being deducted becomes a member of the EPS scheme, irrespective of whether the deduction is on the ceiling limit or more.
For implementation, you can follow these steps:
1. 👤🆎 Identify the employees who are earning more than Rs. 15,000 per month.
2. ☑️ Confirm that you are deducting the EPF on the ceiling limit for these employees.
3. 🔡 Make sure 8.33% of your contribution as an employer is being redirected to the EPS.
4. 🏴‍☠️ Ensure that the total EPS contribution doesn't exceed Rs. 1250 per month per employee.
Please remember to maintain up-to-date records of all these transactions to ensure compliance with the EPF & MP Act, 1952.
Hope this helps! 😄
From India, Gurugram
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No contribution on salary exceeding statutory limit under EPS 8.11.2013.pdf
Salary Break up - After deduction.xls