I joined EPS with a basic pay of 10k in 2016. Later, in 2020, I changed companies, and my HR says I am not eligible for EPS as my basic pay is more than 15k. However, as per the thread below, I believe I am eligible. What action can I take?
https://www.citehr.com/587997-intern...s-not-pg2.html
From India, Bengaluru
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https://www.citehr.com/587997-intern...s-not-pg2.html
From India, Bengaluru
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EPF/EPS Entitlements
EPF/EPS both are one-time entitlements and will continue unless the contributing member achieves the age of 58 or older. During the service span, whether with the same employer or a different one, the pattern cannot be switched.
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651EPF/EPS both are one-time entitlements and will continue unless the contributing member achieves the age of 58 or older. During the service span, whether with the same employer or a different one, the pattern cannot be switched.
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Dear Seniors, One of our EPF members left the job in 2017 and rejoined in November 2020, and now his salary is 19,000/-. Is he eligible for EPF as he is out of coverage now? Please let me know where it is mentioned in the EPF Act that "Any employee who already had an EPF account in his previous company, if the employee joins the new company and if the new company also has the EPF, then that employee is covered under the EPF Act."
Thank you.
From India, Bhogpur
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Thank you.
From India, Bhogpur
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Retention of membership under the EPF Scheme
Clarity exists in the proviso to Para 26A(2) of the EPF Scheme, extracted below:
26A. Retention of membership
(1) A member of the Fund shall continue to be a member until he withdraws under paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies, shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph 26 and in paragraph 27, or sub-paragraph (1) of paragraph 27-A, where the monthly pay of such a member exceeds fifteen thousand rupees, the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of fifteen thousand rupees.
So from this sub-para, it is evident that once an employee is covered under the EPF Scheme, he/she will continue to be so up to the ceiling amount, even if the salary exceeds such limit.
Hope this clarifies.
From India, Mumbai
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Clarity exists in the proviso to Para 26A(2) of the EPF Scheme, extracted below:
26A. Retention of membership
(1) A member of the Fund shall continue to be a member until he withdraws under paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies, shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph 26 and in paragraph 27, or sub-paragraph (1) of paragraph 27-A, where the monthly pay of such a member exceeds fifteen thousand rupees, the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of fifteen thousand rupees.
So from this sub-para, it is evident that once an employee is covered under the EPF Scheme, he/she will continue to be so up to the ceiling amount, even if the salary exceeds such limit.
Hope this clarifies.
From India, Mumbai
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@glidor i understand not contributing to eps is not correct. I should ask my hr to correct it or epfo department?
From India, Bengaluru
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From India, Bengaluru
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EPF Ceiling and EPS Contribution
The EPF ceiling is 15K. Employers should have clarity that for EPS contribution, the limit remains 15K only. Therefore, employers should not have a problem contributing to EPS. It is mandatory that if EPF is deducted, then EPS is applicable by default within the existing limit of contribution.
From India, Vadodara
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The EPF ceiling is 15K. Employers should have clarity that for EPS contribution, the limit remains 15K only. Therefore, employers should not have a problem contributing to EPS. It is mandatory that if EPF is deducted, then EPS is applicable by default within the existing limit of contribution.
From India, Vadodara
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Arguments with an employer or HR are unwarranted. However, you can request them to confirm that your status does not fall under the "excluded employee" category. Simply pass along this one line and let them work on it; they will hopefully discover their error.
Thank you.
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Thank you.
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Without referring to what is written in the link provided by you and the answers given by the learned friends here, my submission is as follows:
Clarification on EPS Eligibility
What your HR says is entirely wrong. You cannot be excluded from EPS as your PF pay is more than 15k. Once you become a member of EPS, you cannot be excluded from it just because you joined new employment above 15k. Only new entrants to the PF scheme joining on or after 01.09.2014, and whose PF salary is more than 15k, are not entitled to join the EPS.
From India, Mumbai
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Clarification on EPS Eligibility
What your HR says is entirely wrong. You cannot be excluded from EPS as your PF pay is more than 15k. Once you become a member of EPS, you cannot be excluded from it just because you joined new employment above 15k. Only new entrants to the PF scheme joining on or after 01.09.2014, and whose PF salary is more than 15k, are not entitled to join the EPS.
From India, Mumbai
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Epf SC-judgment-eps exceeding cealing limit.pdf