Hello Team Can we anyone please explain me how EPS deduction works. Who all are eligible for deudction when we have to stop, Can you please explain me in detail how it is work. Thank you Vijith T K
From India, Chennai
From India, Chennai
First of all please understand that there is no EPS DEDUCTION but only CONTRIBUTION. EPS (Employees Pension Scheme) is a contribution by the employer in respect of employees who are covered by EPF and EPS. An employee joining any establishment for the first time with a salary of more than Rs 15000 may be completely excluded from the coverage of EPF. But if the company is ready to extend it to all employees irrespective of salary, then you can cover all employees. But in respect of those employees you are not expected to contribute to pension scheme but the entire amount payable by the employer should be remitted or contributed into PF only. At the same time, if the new employee (employee joining your establishment) is an existing member of EPF with Pension benefits, then on a ceiling of Rs 15000, you should also continue to contribute to Pension fund. You can stop the Pension Fund contribution on the date on which the employee reached the age of 58 years.
From India, Kannur
4293From India, Kannur
Sir, Thank you so much for your quick reply. One of our Ex employees PF account transfer claim is rejected due to the attached reason in the screenshot. Her DOJ with PF is 11th Sep 2017 some other company by the time she is eligible for EPS her salary is below 15 k , Her preivous company also contributed EPS when her salary was 75,000/- now her salary is more than 1,00,000/- we have contributed 1250 to EPS account. Can you please let us know how to rectify this error.
Thank you
Vijith T K
From India, Chennai
Thank you
Vijith T K
From India, Chennai
You can submit an explanation that at the time of joining her first company (with EPF No of the establishment and member id) her salary was less than Rs 15000, and therefore she was covered by EPS. When she joined the second and subsequent companies since she qualified to be an existing member of EPS, the contributions were paid to EPS also. We also did the same, and we believe that there is no non compliance in this case.
From India, Kannur
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals. CiteHR connects professionals facing similar challenges, leveraging a vast knowledge base (100K+ downloads, 150K+ discussions) and targeted emails to engage experts in solving issues.
Don't Just Communicate, Explain.pdf