Improper EPS Contribution by Employer

714 votes

Employees’ Pension Scheme (EPS) of 1995 offers pension on disablement, widow pension, and pension for nominees. EPS program replaced the Family Pension Scheme (FPS) of 1971. When an employee joins an establishment covered under the Employees Provident Funds & Miscellaneous Provision Act, 1952 (s)he becomes a member of Employees Provident Fund Scheme (EPF), Employees’ Pension Scheme (EPS) 1995, Employees Deposit Linked Insurance Scheme (EDLIS ) , 1976 . The EPS act in pdf format can be read at EPFO’s EPS webpage or Employees’ Pension Scheme, 1995 (pdf) and FAQ on EPS at EPF webpage. It’s main features are:

It is financed by diverting 8.33% of employer’s monthly contribution from the EPF. Monthly contribution to EPS is restricted to 8.33% of 6500 or Rs 541 p.m and after Oct 2014 Rs 1250 8.33% of 15,000. Government’s contribution of 1.16% of the worker’s monthly wages if salary less than Rs 6,500.
Unlike the EPF contribution EPS part (8.33% out of 12% contribution from your employer or Rs 541 and after Oct 2014 Rs 1250 what ever is minimum) does NOT get any interest.
The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored. So 9 years and 6 months will be rounded upto 10 years.
Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.
A employee can start receiving the pension under EPS only after rendering a minimum service of 10 years and attaining the age of 58/50 years.
No pension is payable before the age of 50 years.
Early pension can be claimed after 50 years but before the age of 58 years. But it is subject to discounting factor @ 4% (w.e.f. 26.09.2008) for every year falling short of 58 years. In case of death / disablement, the above restrictions doesn’t apply.
The maximum Pension per month is subject to maximum of Rs 3,250 per month.
Maximum service for the calculation of service is 35 years.
No pensioner can receive more than one EPF Pension.

Advocate Siddhant Sharma LawRato

841 votes

you should ask to your employer about deduction of provident fund contribustion amount. you should made a complaint to provident fund comissionar for the clarification and detail contribustion rrules and regulations . yoyu can also demand for details to manegment.

LawRato LawRato