From September 1, 2014, the EPS is only for those new members earning less than Rs 15,000. Therefore, new employees whose basic pay is more than Rs 15,000 will not see any diversion of 8.33 per cent (of the employer’s share) towards the EPS.
Here new employees means a person who is joining a new organization or a person who has got UAN assigned to him?
For me UAN was assigned in 2012 and salary was less than 15k, so EPS got deducted in my 1st company.
I joined my 2nd company in 2014 but EPF deduction started in 2018. salary was more than 15k but they still deducted EPS. Now my EPF transfer is stuck b/c of this. The reason it is showing on EPFO site is : EPS DEDCUTED ON HIGHER WAGES.
And now my current company is also deducting EPS – salary is more than 15k.
What is the exact rule related to EPS? Should it be deducted or not?
Who told you that those who earning more than Rs.15,000 a month are not eligible for EPS? A new joinee, if his basic and DA combined together is more than Rs.15,000, then it is EMPLOYEE who can decide that whether he be part of EPF or not. If he decided to be part of EPF, then by default part of EPS also.
My PF transfer from my last company was rejected with the status : EPS DEDCUTED ON HIGHER WAGES
I raised a grievance for it and received the below response from EPFO office.
It is informed that after processing your grievance,the following action(s) has been taken:
It is informed that your claim form has been rejected due to your wages more than 15000/- and your date of joining in the establishment after 01.09.2014. So you are not eligible for EPS benefit, and your employer has deducted the EPS contribution wrongly. Kindly submit a clarification letter for merge the EPS amount into EPF account from your employer, then submit the claim form.
I think it does mean that I am not eligible for EPS deduction. Am I not understanding it properly?
They are not saying you must not be part of EPS if your salary is more than Rs.15,000. I think your employer (which many do to avoid their contribution of EPF), might have taken your consent to stay away from EPF. Please check with your employer.
Thanks for the response but I’m still not clear what you are trying to say.
You are saying that EPS should be deducted if EPF is deducted irrespective of the salary.
But the EPFO officer responded that the claim form has been rejected due to your wages more than 15000/- and your date of joining in the establishment after 01.09.2014. So you are not eligible for EPS benefit, and your employer has deducted the EPS contribution wrongly.
And regarding the consent part, what do you mean by that, my EPF and EPS was deducted. That is what I’m trying to transfer to the current company.
Do you think this answer is replied by EPFO Officer? NO. What I said is correct as per the rule. Hence, please check with employer.
I am pretty sure you are right at what you are saying. I have no idea about the rule that’s why I came here. I was just referring to the answer that was provided to me on the grievance raised and his designation is Regional P.F. Commissioner. And as per the rule mentioned here : https://taxguru.in/wp-content/uploads/2014/08/Acturial_WageCeiling_7738.pdf at page 2, point 7,8 he seems correct.