Following changes has occurred by the amendment made by Ministry of Labour and Employment on dated- 19/08/2014 and 22/08/2014 respectively:
These changes will be applicable from 01/09/2014, Means these will be applicable from the wages payable for the month of September-2014.
1. Now EPF, EPS & EDLI schemes are applicable to the employees drawing Salary (Basic+DA+Cash value of food concessions) equal to or less than Rs 15000/- (It was 6500/- previously).
2. No changes made in the %age rates of PF, EPS, EDLI and Admin Charges payable, contribution to the said heads will be calculated on Rs15000/- (It was calculated on 6500/-) previously.
Previously Total monthly contribution payable was Rs 1560/- (6500*24/100), Now it will be Rs 3600/- (15000*24/100).
1. New employees will not be allowed to contribute on salary exceeding Rs 15000/- in EPS (Pension scheme). Existing employees who are already contributing on salary exceeding Rs 6500/- will be allowed to contribute on salary exceeding Rs15000/-in the Pension a/c, they have to fulfill the below conditions;
i. They have to submit a Fresh Option with the consent of Employer to the EPFO.
ii. Fresh option should be submitted till 28/02/2015, but if RPFC satisfied with the reason of late submission it can be extended upto 31/08/2015.
iii. Employee have to contribute additional contribution @1.16%
***Please Note- If any existing employee will contribute on salary exceeding Rs15000/- in EPS without submitting a fresh option his excess EPS amt will be transferred back to EPF a/c (with applicable interest amount)
2. Pensionable salary (On the basis of which retirement/death pension is calculated) will be calculated on the basis of last 60 months average salary, previously it was calculated on the basis of last 12 months average salary.
3. Now minimum monthly Pension has guaranteed Rs1000/- under the EPS scheme. (Means- Pension as per calculation under the provisions may be higher than 1000/-PM but in no any case it will be less than Rs 1000/-PM).
4. Minimum monthly Widow Pension has increased from Rs 450/-PM to Rs 1000/-PM for F.Y.-2014-15
5. Minimum monthly Children Pension to each children of deceased member has increased from Rs 150/-PM to Rs 250/-PM for F.Y.-2014-15
6. Minimum monthly Orphan Pension has increased from Rs 250/-PM to Rs 750/-PM for F.Y.-2014-15
7. Maximum Ceiling of benefit of Insurance under the “Employees Deposit-linked Insurance” (EDLI) scheme admissible on death of a member has increased 20% i.e.- from Rs60000/- to Rs72000/-.
Thanks & Regards
Sushil
CAclubindia
