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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
The pension component funded from within the employer's provident fund contribution at 8.33%, subject to the statutory wage ceiling. It is not an additional cost on top of the employer's 12%; it is a split of it.
Payroll never deducts EPS from the employee. It is carved out of the employer's 12% PF share: 8.33% of PF wages, capped at the ₹15,000 wage ceiling, goes to the pension fund and the balance of the employer share goes to the employee's EPF account. The ECR file shows the two amounts separately each month.
Example with illustrative figures: on PF wages of ₹25,000, the employer's 12% is ₹3,000. EPS is 8.33% of ₹15,000, about ₹1,250, so roughly ₹1,750 goes to EPF. On PF wages of ₹12,000, EPS is about ₹1,000 and the EPF portion about ₹440.
The recurring error is computing EPS on actual wages above the ceiling without a valid higher pension option on record, or splitting it for a member who joined after the rules excluded new high earners. Both create ECR mismatches that surface later during a pension or transfer claim. Check the current EPFO position on higher pension before changing any split.
The Employees' Pension Scheme, funded from within the employer's provident fund contribution.
8.33%, taken from the employer's PF contribution, subject to the statutory wage ceiling.
No. It is a split of the employer's 12%, not an addition to it.
No. EPS is funded from the employer's share.
Yes. The 8.33% applies within the statutory wage ceiling.
EPF is the provident fund scheme; EPS is the pension component carved out of the employer's EPF contribution.
What is not diverted to EPS remains in the provident fund.
Because 8.33% of the employer's 12% is diverted to the pension scheme, within the statutory ceiling.
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