Hi Seniors, Good Evening!
I have a small query. I know that GoI contributes 1.16% of my basic salary to my EPS account. However, whenever I download my EPF passbook, I found no contribution from GoI. Earlier, it used to show only Rs. 541/-; perhaps since the last 4 odd years, it has been showing Rs. 1250/- credited to my EPS account every month. I understand this is my employer's contribution. The rest of the employer's contribution goes to my EPF account, only Rs. 1250/- comes to the EPS account. No contribution from GoI is mentioned in my passbook; why is that? Does that mean GoI doesn't provide me with 1.16% of my basic salary? Or am I not entitled to receive it? Or do they provide it at the end of my career? How does it work? Can any industry experts provide me with insight on this? Thanks in anticipation.
From India, Kolkata
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14I have a small query. I know that GoI contributes 1.16% of my basic salary to my EPS account. However, whenever I download my EPF passbook, I found no contribution from GoI. Earlier, it used to show only Rs. 541/-; perhaps since the last 4 odd years, it has been showing Rs. 1250/- credited to my EPS account every month. I understand this is my employer's contribution. The rest of the employer's contribution goes to my EPF account, only Rs. 1250/- comes to the EPS account. No contribution from GoI is mentioned in my passbook; why is that? Does that mean GoI doesn't provide me with 1.16% of my basic salary? Or am I not entitled to receive it? Or do they provide it at the end of my career? How does it work? Can any industry experts provide me with insight on this? Thanks in anticipation.
From India, Kolkata
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Looking forward to your help. Does anyone know how it’s calculate. Please let me know your ideas.
From India, Kolkata
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From India, Kolkata
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Pension funds are managed by an independent trust body, and a 1.16% contribution of GOI is payable to them only as their respective administrative charges.
Up to August 2014, EPS eligible salary was 6500/-, so the contribution was 541/- (8.33% of 6500), and from September 2014 onwards, it is 15000/-, so the contribution is 1250/- (8.33% of 15000). GOI bears the administration charges of the trust body up to this ceiling limit.
In the case of additional or enhanced pension over the EPS ceiling limit of 15000 now, or private trust body pension, such EPS contributions have to pay 1.16% of EPS eligible wages towards admin fees of the trust body for maintaining the account corpus.
Regarding the payback, no, it is not displayed in the account, but your account accrues interest that is reflected. No charges are deducted as service fees or fund manager charges.
However, on completion of 20 years of EPS contribution, an additional 2 years bonus is added to the employee. Though the fund is 8.33% corpus, the pension fund accumulation is 8.33+1.16 = 9.49%, and it is not reflected in the passbook but payable at the time of pension calculation.
For more details, please read this article https://economictimes.indiatimes.com...w/53386514.cms.
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Up to August 2014, EPS eligible salary was 6500/-, so the contribution was 541/- (8.33% of 6500), and from September 2014 onwards, it is 15000/-, so the contribution is 1250/- (8.33% of 15000). GOI bears the administration charges of the trust body up to this ceiling limit.
In the case of additional or enhanced pension over the EPS ceiling limit of 15000 now, or private trust body pension, such EPS contributions have to pay 1.16% of EPS eligible wages towards admin fees of the trust body for maintaining the account corpus.
Regarding the payback, no, it is not displayed in the account, but your account accrues interest that is reflected. No charges are deducted as service fees or fund manager charges.
However, on completion of 20 years of EPS contribution, an additional 2 years bonus is added to the employee. Though the fund is 8.33% corpus, the pension fund accumulation is 8.33+1.16 = 9.49%, and it is not reflected in the passbook but payable at the time of pension calculation.
For more details, please read this article https://economictimes.indiatimes.com...w/53386514.cms.
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