What is the EPS contribution rate and wage ceiling?
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Employers contribute 8.33% of employee's monthly wages (basic+DA) towards EPS, subject to a wage ceiling of ₹15,000 per month. For employees earning above ₹15,000, the contribution is capped at ₹1,250 (8.33% of 15,000).
What is the difference between EPS contribution and EPF contribution?
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The employer's total contribution is 12% of wages. Out of this, 8.33% goes to EPS (pension) and the remaining 3.67% goes to EPF (provident fund). Employee contributes 12% to EPF.
What is the minimum service required for monthly pension under EPS?
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A member must have at least 10 years of pensionable service (including transferred service) to qualify for monthly pension. If less than 10 years, they can withdraw the EPS contribution via Form 10C.
How is pensionable service calculated?
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Pensionable service is the total years of service under EPS across all employers, provided transfers are completed. Service is counted in years, with any fraction of 6 months or more rounded to the next year. Maximum considered is 35 years.
What if an employee's EPS contribution is not deposited?
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Non-deposit of EPS contributions can lead to penalties, interest, and denial of pension benefits. We help employers rectify defaults and file revised returns to avoid legal action.