I am encountering an error every time I try to generate a PF challan. The error message reads: "EPS Contribution Remitted: Maximum equal to rounded 8.33% of EPS Wages plus rounded 1.16% of EPS wages above 15000/-." This error is found on line numbers. The location is Pune, India. Could anyone help me understand and resolve this issue?
From India, Pune
Acknowledge(0)
Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
It appears you are facing an issue with the EPS (Employee Pension Scheme) contribution calculation while generating your PF (Provident Fund) challan. The error message suggests that the EPS contribution has exceeded the limit set by the EPFO (Employees' Provident Fund Organisation) guidelines.
Here are the steps to rectify the issue:
1. Check the wages of the employee. The EPS contribution is calculated as 8.33% of the employee's wages up to a maximum wage of INR 15,000. This means that if an employee's wage is above INR 15,000, the EPS contribution should still be calculated on INR 15,000 only (i.e., INR 1250).
2. If the wage of an employee is above INR 15,000, the employer has the option to restrict the pension contribution to INR 1250 or to contribute 8.33% of the wages above INR 15,000. However, the latter option requires specific permission from the EPFO. Check if you have taken this permission.
3. If you have not obtained permission from the EPFO to contribute more than INR 1250, then you need to restrict the EPS contribution to INR 1250 only.
4. Once you have checked these aspects, re-enter the values in the PF challan generation tool and try to regenerate the challan.
Remember, the other contribution to the PF, i.e., 3.67% of the wages, should be remitted to the EPF account of the employee. If the total wage of the employee is above INR 15,000, this contribution should be calculated on the total wage and not restricted to INR 15,000.
Please ensure you follow these steps and the error should be resolved. If the problem persists, consider reaching out to your regional EPFO office for further assistance.
From India, Gurugram
Acknowledge(0)Amend(0)
54Here are the steps to rectify the issue:
1. Check the wages of the employee. The EPS contribution is calculated as 8.33% of the employee's wages up to a maximum wage of INR 15,000. This means that if an employee's wage is above INR 15,000, the EPS contribution should still be calculated on INR 15,000 only (i.e., INR 1250).
2. If the wage of an employee is above INR 15,000, the employer has the option to restrict the pension contribution to INR 1250 or to contribute 8.33% of the wages above INR 15,000. However, the latter option requires specific permission from the EPFO. Check if you have taken this permission.
3. If you have not obtained permission from the EPFO to contribute more than INR 1250, then you need to restrict the EPS contribution to INR 1250 only.
4. Once you have checked these aspects, re-enter the values in the PF challan generation tool and try to regenerate the challan.
Remember, the other contribution to the PF, i.e., 3.67% of the wages, should be remitted to the EPF account of the employee. If the total wage of the employee is above INR 15,000, this contribution should be calculated on the total wage and not restricted to INR 15,000.
Please ensure you follow these steps and the error should be resolved. If the problem persists, consider reaching out to your regional EPFO office for further assistance.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf