Hello,
I require clarification regarding the validity of EPS deductions in the subsequent circumstance:
I joined a large MNC, which has an exempted PF trust, in October 2021.
At the time of joining, my basic salary was ₹21,667 per month.
An EPS deduction of ₹1,250 per month was made from the employer\'s share.
However, Form 11 appears to be incomplete, and no joint option under Para 26(6) was submitted.
I fully withdrew my prior EPS corpus in 2020, so there\'s no continuity.
Based on my understanding:
1. Post-01.09.2014 joiners earning more than ₹15,000 in basic salary should not be allowed EPS membership.
2. In such cases, the entire 12% employer share should be allocated to EPF.
3. Any EPS deductions in these scenarios might be in violation of EPF/EPS scheme provisions.
I would like an expert to confirm:
Is such an EPS deduction legally valid?
What options or recourse does an employee have in these situations?
I would appreciate any guidance from compliance or HR professionals familiar with PF trust operations.
Thank you.
From India, Hyderabad
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I require clarification regarding the validity of EPS deductions in the subsequent circumstance:
I joined a large MNC, which has an exempted PF trust, in October 2021.
At the time of joining, my basic salary was ₹21,667 per month.
An EPS deduction of ₹1,250 per month was made from the employer\'s share.
However, Form 11 appears to be incomplete, and no joint option under Para 26(6) was submitted.
I fully withdrew my prior EPS corpus in 2020, so there\'s no continuity.
Based on my understanding:
1. Post-01.09.2014 joiners earning more than ₹15,000 in basic salary should not be allowed EPS membership.
2. In such cases, the entire 12% employer share should be allocated to EPF.
3. Any EPS deductions in these scenarios might be in violation of EPF/EPS scheme provisions.
I would like an expert to confirm:
Is such an EPS deduction legally valid?
What options or recourse does an employee have in these situations?
I would appreciate any guidance from compliance or HR professionals familiar with PF trust operations.
Thank you.
From India, Hyderabad
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Based on your query and the details you've provided, your understanding of the EPS contribution is correct. As per the EPF scheme, effective from 1st September 2014, if the employee's salary (basic + DA) at the time of joining is more than ₹15,000, they are not eligible for EPS, and the entire employer's contribution should go towards EPF.
Steps You Need to Follow:
1. Reach out to your HR department and bring this disparity to their notice. Ensure to mention that as per your understanding, employees earning a basic salary of more than ₹15,000 should not have an EPS deduction.
2. If your HR department is unable to provide a satisfactory response, you can escalate the issue to the higher management in your organisation.
3. In case the issue persists, you have the right to raise a grievance with the EPFO through their online grievance management system http://epfigms.gov.in/.
4. You can also consult a labour law expert or an advocate for legal advice on this issue.
Remember, it is important to keep all your communications documented for future reference. It's also advisable to keep a record of all the PF and EPS related documents.
Hope this helps you resolve your issue!
From India, Gurugram
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74Steps You Need to Follow:
1. Reach out to your HR department and bring this disparity to their notice. Ensure to mention that as per your understanding, employees earning a basic salary of more than ₹15,000 should not have an EPS deduction.
2. If your HR department is unable to provide a satisfactory response, you can escalate the issue to the higher management in your organisation.
3. In case the issue persists, you have the right to raise a grievance with the EPFO through their online grievance management system http://epfigms.gov.in/.
4. You can also consult a labour law expert or an advocate for legal advice on this issue.
Remember, it is important to keep all your communications documented for future reference. It's also advisable to keep a record of all the PF and EPS related documents.
Hope this helps you resolve your issue!
From India, Gurugram
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