SEARCH EPS PENSION HIKE 7500+DA STATUS BELOW:
An individual who joined the Employees' Provident Fund (EPF), when Gregorian calendar month one, 2014, cannot open associate degree Employees' Pension theme (EPS) account if his monthly pay exceeds Rs 15,000.
This is as a result of the govt amended the foundations associated with EPF and EPS schemes via a notification dated August 22, 2014, that became effective from September 1, 2014. In this, there have been 2 changes created to the scheme.
First, the monthly pay ceiling up to that it had been necessary to hitch the provident fund (PF) theme, was hiked to Rs 15,000 per month from Rs 6,500 per month earlier. Second, people were disallowed from change of integrity the pension scheme if monthly pay exceeded Rs 15,000 at the time of change of joining.
For the aim of the EPS theme, pay is taken into account as basic wage and costliness allowance (DA). So, in line with the amended rules, if a human basic wage and DA exceeds Rs 15,000 a month, then he won't be eligible to hitch the EPS scheme.
How these changes impact your EPF contributions
"Prior to the notification dated 22 August 2014, the wage ceiling beneath EPF scheme was Rs 6,500 per month (currently Rs 15,000 per month). This meant that if associate degree employee's monthly pay was but Rs 6,500, then he/she had to compulsorily be a part of the EPF and EPS schemes. However, if associate degree employee's monthly pay exceeded Rs 6,500 (now Rs 15,000) earlier, he/she might optionally be a part of the schemes and open each EPF and EPS account. The notification, effective from September 1, 2014, disallows the EPF theme member from change of integrity the pension theme if monthly pay exceeds Rs 15,000 at the time of change of integrity."
As per this rules of the EPF theme, associate degree worker contributes 12% of his monthly pay to the EPF theme associate degreed an leader matches this contribution. Out of the overall pure gold contribution (Employee's 12% + Employer's 12%), employee's 12% and employer's 3.67% goes into the EPF account and therefore the balance 8.33% goes into the EPS account. The monthly EPS contribution by the leader is calculated on the employee's actual pay if but Rs 15,000 and on Rs 15,000 if the pay exceeds this limit. Therefore, the most EPS contribution is Rs 1,250 per month.
This is as a result of the govt amended the foundations associated with EPF and EPS schemes via a notification dated August 22, 2014, that became effective from September 1, 2014. In this, there have been 2 changes created to the scheme.
First, the monthly pay ceiling up to that it had been necessary to hitch the provident fund (PF) theme, was hiked to Rs 15,000 per month from Rs 6,500 per month earlier. Second, people were disallowed from change of integrity the pension scheme if monthly pay exceeded Rs 15,000 at the time of change of joining.
For the aim of the EPS theme, pay is taken into account as basic wage and costliness allowance (DA). So, in line with the amended rules, if a human basic wage and DA exceeds Rs 15,000 a month, then he won't be eligible to hitch the EPS scheme.
How these changes impact your EPF contributions
"Prior to the notification dated 22 August 2014, the wage ceiling beneath EPF scheme was Rs 6,500 per month (currently Rs 15,000 per month). This meant that if associate degree employee's monthly pay was but Rs 6,500, then he/she had to compulsorily be a part of the EPF and EPS schemes. However, if associate degree employee's monthly pay exceeded Rs 6,500 (now Rs 15,000) earlier, he/she might optionally be a part of the schemes and open each EPF and EPS account. The notification, effective from September 1, 2014, disallows the EPF theme member from change of integrity the pension theme if monthly pay exceeds Rs 15,000 at the time of change of integrity."
As per this rules of the EPF theme, associate degree worker contributes 12% of his monthly pay to the EPF theme associate degreed an leader matches this contribution. Out of the overall pure gold contribution (Employee's 12% + Employer's 12%), employee's 12% and employer's 3.67% goes into the EPF account and therefore the balance 8.33% goes into the EPS account. The monthly EPS contribution by the leader is calculated on the employee's actual pay if but Rs 15,000 and on Rs 15,000 if the pay exceeds this limit. Therefore, the most EPS contribution is Rs 1,250 per month.
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