Urgent - Defoult in contribution to Employees Pension Scheme
This query is : Resolved
19 May 2009
I have a query related to the Employees pension fund. The facts of the case are:
The employer is deduction 12% of the basic pay from the salary as the employees contribution towards the P.F.
Now he is also supposed to deposit the same amount in P.F. whereas he has been depositing only 3.67% in P.F.
The employees noticed this from the P.F. acount statement but they assumed that the employer must have been depositing the balance 8.33% in the Employees pension Fund.
But now they have discovered that no such contributions have been made by the employer in Employees Pension Fund.
Now my query is that whether employees have any rights & measures to exercise against the employer? If yes please provide me with a refernce or link where I can found all of them in Detail.
Also, is there any account statement of Employees pension fund that should be made available to the employees similar to the account statement of the P.F. & on what periodicity?
The employer is deduction 12% of the basic pay from the salary as the employees contribution towards the P.F.
Now he is also supposed to deposit the same amount in P.F. whereas he has been depositing only 3.67% in P.F.
The employees noticed this from the P.F. acount statement but they assumed that the employer must have been depositing the balance 8.33% in the Employees pension Fund.
But now they have discovered that no such contributions have been made by the employer in Employees Pension Fund.
Now my query is that whether employees have any rights & measures to exercise against the employer? If yes please provide me with a refernce or link where I can found all of them in Detail.
Also, is there any account statement of Employees pension fund that should be made available to the employees similar to the account statement of the P.F. & on what periodicity?
20 May 2009
As you told employer is depositing only 3.67% towards PF a/c but this is not possible he will pay balance (12%-3.67%) in EPF a/c this will not reflect in PF Yearly staement. Without making contribution to EPF(Pension), Dept will not accepet the monthly return, you better check this matter with PF AUTHORITIES
You will not get any statement for pension account
You will not get any statement for pension account
20 May 2009
Thank you so much for the reply.
Please clarify further that if the employee does not get the statement for the pension scheme then how & when will he be able to claim the balance accrued in that account?
Also, does any interest accrues on the same. If Yes, at what rate?
Regards
Priti
Please clarify further that if the employee does not get the statement for the pension scheme then how & when will he be able to claim the balance accrued in that account?
Also, does any interest accrues on the same. If Yes, at what rate?
Regards
Priti
20 May 2009
Please treat this as urgent
02 August 2025
Hi Priti, here’s a detailed clarification on your query regarding **Employees’ Pension Scheme (EPS)** and the employer’s short contribution:
---
### 1. **Employer’s Contribution to EPS**
* Under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, the employer’s total contribution is **12% of basic wages**.
* Out of this 12%, **8.33% must be deposited towards the Employees’ Pension Scheme (EPS)** (subject to a wage ceiling of ₹15,000/month, so max ₹1,250 per month towards EPS).
* The **remaining 3.67% goes to the Employees’ Provident Fund (EPF)** account of the employee.
---
### 2. **Your Concern: Employer depositing only 3.67% in PF and NOT depositing 8.33% in EPS**
* This is **a serious violation** by the employer.
* The employer **cannot simply skip depositing EPS contribution**.
* The PF authorities **won’t accept monthly returns without the EPS contribution**.
* Employees have the **right to raise complaints** with the **Regional Provident Fund Commissioner (RPFC)** or PF authorities.
---
### 3. **Employees’ Rights and Measures:**
* Employees can **file a complaint with the PF authorities** if employer is not depositing full contributions.
* PF authorities can **initiate enquiry and penalize the employer** for non-compliance.
* Employees can also **seek legal remedies through labour courts or EPF appellate tribunal**.
---
### 4. **Account Statements for EPS**
* Currently, **EPS contributions are credited and maintained by the EPFO** but **there is no separate periodic statement issued to employees** like EPF passbook.
* However, **employees can view their EPS contribution and service history online** on the EPFO member portal using their Universal Account Number (UAN).
* The **pension amount is calculated based on EPS service and contribution** upon retirement or exit.
---
### 5. **Claiming EPS Balance and Interest**
* Employees can **claim EPS benefits on retirement (age 58), or after 10 years of service on exit, or on disablement or death**.
* The **EPS balance includes contributions made by the employer and credited service years**.
* Interest **does accrue on EPS funds**, but the **rate and calculation is decided annually by the EPFO**.
* The **interest rate is generally lower than EPF**, and it is credited to the pension corpus.
---
### **Summary:**
| Issue | Details |
| ----------------------------- | ------------------------------------------------------- |
| Employer short depositing EPS | Violation; employees can complain to EPFO |
| EPS statement to employees | No separate periodic statement; online access available |
| Claiming EPS | After retirement/exit/disability/death |
| Interest on EPS | Yes, declared annually by EPFO |
| Action for employees | File complaint with RPFC; legal recourse if needed |
---
### Helpful Links:
* [EPFO Member Portal](https://unifiedportal-mem.epfindia.gov.in/memberinterface/)
* [EPFO Grievance Redressal](https://epfigms.gov.in/)
---
If you want, I can help you draft a complaint letter to the PF authorities or guide you step-by-step on how to check EPS details online. Would you like that?
---
### 1. **Employer’s Contribution to EPS**
* Under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, the employer’s total contribution is **12% of basic wages**.
* Out of this 12%, **8.33% must be deposited towards the Employees’ Pension Scheme (EPS)** (subject to a wage ceiling of ₹15,000/month, so max ₹1,250 per month towards EPS).
* The **remaining 3.67% goes to the Employees’ Provident Fund (EPF)** account of the employee.
---
### 2. **Your Concern: Employer depositing only 3.67% in PF and NOT depositing 8.33% in EPS**
* This is **a serious violation** by the employer.
* The employer **cannot simply skip depositing EPS contribution**.
* The PF authorities **won’t accept monthly returns without the EPS contribution**.
* Employees have the **right to raise complaints** with the **Regional Provident Fund Commissioner (RPFC)** or PF authorities.
---
### 3. **Employees’ Rights and Measures:**
* Employees can **file a complaint with the PF authorities** if employer is not depositing full contributions.
* PF authorities can **initiate enquiry and penalize the employer** for non-compliance.
* Employees can also **seek legal remedies through labour courts or EPF appellate tribunal**.
---
### 4. **Account Statements for EPS**
* Currently, **EPS contributions are credited and maintained by the EPFO** but **there is no separate periodic statement issued to employees** like EPF passbook.
* However, **employees can view their EPS contribution and service history online** on the EPFO member portal using their Universal Account Number (UAN).
* The **pension amount is calculated based on EPS service and contribution** upon retirement or exit.
---
### 5. **Claiming EPS Balance and Interest**
* Employees can **claim EPS benefits on retirement (age 58), or after 10 years of service on exit, or on disablement or death**.
* The **EPS balance includes contributions made by the employer and credited service years**.
* Interest **does accrue on EPS funds**, but the **rate and calculation is decided annually by the EPFO**.
* The **interest rate is generally lower than EPF**, and it is credited to the pension corpus.
---
### **Summary:**
| Issue | Details |
| ----------------------------- | ------------------------------------------------------- |
| Employer short depositing EPS | Violation; employees can complain to EPFO |
| EPS statement to employees | No separate periodic statement; online access available |
| Claiming EPS | After retirement/exit/disability/death |
| Interest on EPS | Yes, declared annually by EPFO |
| Action for employees | File complaint with RPFC; legal recourse if needed |
---
### Helpful Links:
* [EPFO Member Portal](https://unifiedportal-mem.epfindia.gov.in/memberinterface/)
* [EPFO Grievance Redressal](https://epfigms.gov.in/)
---
If you want, I can help you draft a complaint letter to the PF authorities or guide you step-by-step on how to check EPS details online. Would you like that?
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