Dear All, Please guide what is the calculation of PF as per supreme court order and who pays EDLI and admin charges.
From India, New Delhi
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8From India, New Delhi
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Employer and Employee Contributions to EPF, EPS, and EDLI
The employer makes contributions to these schemes on behalf of the employees. The employee contribution is deducted from the salary before it is credited. Employees themselves do not need to make any direct payments to these schemes.
Contribution Calculations
The contribution of employees is calculated as follows:
- For EPF: 12%
- For EPS: None
- For EDLI: None
The contribution of the employer is calculated as follows:
- For EPF: 3.67%
- For EPS: 8.33% or Rs. 1,250/-
- For EDLI: 0.50% or a maximum of Rs. 75/-
Purpose of the EDLI Scheme
The chief motive of the EDLI scheme is to offer financial security to the family members of the policyholder (deceased person). Family members include the spouse, unmarried daughter, or male child up to 25 years of age. Employees cannot choose which of the three schemes—EPF, EPS, or EDLI—they want to opt for, but these are transferable with any change in employment. The new employer will continue to make payments into the existing account only.
From India
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The employer makes contributions to these schemes on behalf of the employees. The employee contribution is deducted from the salary before it is credited. Employees themselves do not need to make any direct payments to these schemes.
Contribution Calculations
The contribution of employees is calculated as follows:
- For EPF: 12%
- For EPS: None
- For EDLI: None
The contribution of the employer is calculated as follows:
- For EPF: 3.67%
- For EPS: 8.33% or Rs. 1,250/-
- For EDLI: 0.50% or a maximum of Rs. 75/-
Purpose of the EDLI Scheme
The chief motive of the EDLI scheme is to offer financial security to the family members of the policyholder (deceased person). Family members include the spouse, unmarried daughter, or male child up to 25 years of age. Employees cannot choose which of the three schemes—EPF, EPS, or EDLI—they want to opt for, but these are transferable with any change in employment. The new employer will continue to make payments into the existing account only.
From India
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Hi, Is this EDLI charge is also paid by the employee’s salary. Regards Ankita
From India, New Delhi
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From India, New Delhi
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Is the Supreme Court order to be considered valid for EPF deductions/contributions on gross salary, which includes basic DA and any other allowances that are paid regularly, generally, and uniformly to all employees, except HRA (Read in an order). Where in EPF authorities so far have not officially notified about any such change mentioning the Supreme Court order. Requesting if any of the respected members have any latest updates, please share in detail. Maybe I might have missed some updates if any.
From India, Vadodara
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From India, Vadodara
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Hi Ankita, EDLI and Admin charges are paid by employer and not from employee’s salary unless you are following CTC structure. Regards, Vishakha M
From India, Mumbai
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From India, Mumbai
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If an employee joined in 1995 and opted for an 8.33% higher EPS contribution, then what will be the pension calculation?
Whether:
1) The average last 60 months EPS contribution is supposed to be Rs. 21,450, then Rs. 21,450 x 35/70 = Rs. 10,725 pension per month.
2) Or it will be divided into three parts:
(a) Rs. 6,500 (until the revision of the ceiling to Rs. 15,000),
(b) Rs. 15,000 until the Supreme Court ruling, and
(c) from the Supreme Court ruling to retirement.
The sum of (a + b + c) will be the final pension per month.
From India, Mumbai
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Whether:
1) The average last 60 months EPS contribution is supposed to be Rs. 21,450, then Rs. 21,450 x 35/70 = Rs. 10,725 pension per month.
2) Or it will be divided into three parts:
(a) Rs. 6,500 (until the revision of the ceiling to Rs. 15,000),
(b) Rs. 15,000 until the Supreme Court ruling, and
(c) from the Supreme Court ruling to retirement.
The sum of (a + b + c) will be the final pension per month.
From India, Mumbai
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Epfo-circular-2 2-mar-2017-pf-e dli-admin-charg es-reduced-waiv ed-wef-1-apr-20 17.pdf