what is EPFO , EPS, EDLI

What is EPFO?

EPFO is one of the world’s largest social security organisations in terms of the volume of financial transactions undertaken and clientele. According to the Annual Report 2015-16, EPFO currently maintains 17.14 crore accounts pertaining to its members. It provides Universal Social Security Coverage on a mandatory basis by way of Provident Fund, Pension and Life Insurance for all workers of the country

Important Points to Consider

1) Employee provident fund (EPF)

The maximum wage ceiling for the calculation of EPF contributions is ₹ 15,000
The employee can make contributions at a higher rate but the employer is not bound to pay at the higher rate
The employee and the employer has to submit a joint request for making higher contributions in the EPF account
The employer, however, will have to pay higher administrative charges (at the rate including 0.50% of the employee’s wage above ₹ 15,000)
There is no wage ceiling (₹ 15,000) for international workers

2)Employees’ Pension Scheme(EPS)

The employer is not required to make the contribution when the employee reaches 58 years of age and is still in service
The employer need not pay EPS contribution when the pensioner is drawing a reduced pension and re-joins as an employee
The employee, who joins the service at an age of 50 or above and is not availing pension, does not have an option of not getting the pension contribution. The employee, or the employer, cannot say that the contribution should not be furnished as he will not be able to complete 10 years of service to avail pension benefits

3) Employees’ Deposit Linked Scheme (EDLI)

The contribution to be made should be at a rate of the maximum wage ceiling of ₹15,000 even if the employee’s share is more than ₹ 15,000
Each contribution is rounded off to the nearest rupee
EDLI contribution has to be made even after the employee has completed the age of 58 years and should continue until the member is in service!

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Milan Tomic

Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.