My first employer was not making any contribution to EPS, but my 2nd employer started. Now I have changed the organization, and my 3rd employer is not contributing to EPFO. Do I need to opt out of EPS or continue as my 2nd employer started EPS even though, in all cases, my basic salary is more than 15000?
From India, Hyderabad
From India, Hyderabad
Opting out of EPS will depend not only on the salary but on the date of joining the Fund. If your first employment was after 1st Sept 2014 and the PF qualifying salary at the time of joining the first organisation was above Rs 15000, then your opting out of EPS was right. Actually it is not opting out but you should have excluded from EPS. Now, the second company has contributed to EPS either by mistake or due to lack of knowledge of the law. They should not have contributed to EPS but should have contributed their share exclusively to EPF without bifurcating it as 8.33% to EPS and the remaining 3.67% to EPF. Now when you join a third company you should tell the Personnel Officer that you are an existing member of EPF and no way you could be excluded from PF. Naturally, if the third company is having less than 20 employees, that establishment will not have PF registration. In such cases, you will have to wait till the establishment gets coverage first and then to get you covered by EPF.
Before that you have to get the contributions made by the second company corrected. Otherwise, when you go for withdrawal of PF, or transfer the PF, the system will reject it saying that your first company did not contribute to EPS or the second company did contribute to EPS etc. Now a days the main objective of EPFO is rejection of claims. Therefore, you have to correct the second company's contributions and divert the funds from EPS to EPF. It is just a reconciliation and transfer of funds for the EPFO but they will not do it by themselves until the member walks in every day and remind them of their duties!!
From India, Kannur
4193Before that you have to get the contributions made by the second company corrected. Otherwise, when you go for withdrawal of PF, or transfer the PF, the system will reject it saying that your first company did not contribute to EPS or the second company did contribute to EPS etc. Now a days the main objective of EPFO is rejection of claims. Therefore, you have to correct the second company's contributions and divert the funds from EPS to EPF. It is just a reconciliation and transfer of funds for the EPFO but they will not do it by themselves until the member walks in every day and remind them of their duties!!
From India, Kannur
Thanks Madhu. T.K for such a clear answer. One doubt, my 3rd organisation is having more than 20 employees and they do contribute to EPS for other employees, but I am not sure why in my case they contributed whole money to employer PF.
Also, please correct me, is my 3rd employer right ? and he should not be contributing to EPS. Instead I should ask my 2nd employer to correct this mistake.
Fyi, my joining date in first company was in 2018
From India, Hyderabad
Also, please correct me, is my 3rd employer right ? and he should not be contributing to EPS. Instead I should ask my 2nd employer to correct this mistake.
Fyi, my joining date in first company was in 2018
From India, Hyderabad
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