Dear patrons, Greetings from Connect One Dynamic Synergies Private Limited
Employees’ Provident Fund Organisation (EPFO) members are entitled to a pension after retirement. Currently, the employees and employers contribute 12% of their basic salary and dearness allowance to the EPF. Of the employer’s 12% contribution, 8.33% goes to the Employees’ Pension Scheme (EPS) and 3.67% to the EPF.
However, the 8.33% EPS contribution is capped at the maximum amount of Rs.15,000 even when the employee draws a higher salary. The cap on the EPS contribution was introduced in 2014 through an amendment to the EPS.
Before the EPS amendment in 2014, employees had the option to choose higher EPS contribution amounts. This article covers the EPFO circular on higher pensions and its claim process.
Thanks and Regards,
Connect One Compliance Team
From India, Bengaluru
9Employees’ Provident Fund Organisation (EPFO) members are entitled to a pension after retirement. Currently, the employees and employers contribute 12% of their basic salary and dearness allowance to the EPF. Of the employer’s 12% contribution, 8.33% goes to the Employees’ Pension Scheme (EPS) and 3.67% to the EPF.
However, the 8.33% EPS contribution is capped at the maximum amount of Rs.15,000 even when the employee draws a higher salary. The cap on the EPS contribution was introduced in 2014 through an amendment to the EPS.
Before the EPS amendment in 2014, employees had the option to choose higher EPS contribution amounts. This article covers the EPFO circular on higher pensions and its claim process.
Thanks and Regards,
Connect One Compliance Team
From India, Bengaluru
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