What is the Difference Between EPF and EPS ?

What is Difference Between EPF and EPS ? – A very common confusion among the service holders especially the younger one. Many of them doesn’t know exactly they contribute i.e. EPF or EPS.

Employee Provident Fund (EPF) : EPF is Employee Provident Fund a separate trust created under Employees Provident Fund Organisation (EPFO) with the sole objective of providing the financial security after the retirement to the salaried individual. In general the EPF was started for salaried individual with contributory investment. EPF created under Employees’ Provident Fund Scheme, 1952.

Each employee needed to contribute the certain portion of their monthly income to EPF fund for longer period of time genrally till the age of 60 years or retirement from the employment. Generally 12% of the Basic pay along with Dearness allowance needed to be contributed to EPF of individual account with EPFO.

EPFO or Employees Provident Fund Organisation (EPFO) is a statutory body under Ministry of Labour and Employment. Each individual who is contributing to his/her EPF account needed to open Provident Fund (PF) with EPFO asssociated with their employer.

PF account or Provident Fund account is universal account and individual need not to change the account with change in employment. PF number are now Universal Account Number (UAN) which is universla by nature and change of job doesn’t require the closure of PF account with EPFO.

The UAN – PF number can be accessed from their website i.e. http://uanmembers.epfoservices.in

EPS or Employees’ Pension Scheme (EPS) : This is the scheme launched for providing pension to disable including defence personnel, widow of service holder and others. This scheme include the concept of Family pension.

Under the EPS the 8.33 percent of employer’s monthly contribution are separately invested for family pension. The minimum family pension will be Rs 1250 i.e. 8.33% of Rs 15000 per month (Minimum Amount fixed by government). Government also contributed in family pension at the rate of 1.17 percent of the individuals monthly wages.

Who are Eligible for Family Pension under EPS Scheme ?

Such individual or worker’s

  1.  who have Superannuated i.e. rendered eligible service of 20 years and more
  2. Permanent  Disable person
  3. Short service Pension i.e. service of 10 years to 20 years.

How Does EPF and EPS calculated ?

All the contribution under EPF and EPS are calculated on Basic Salary along with dearness allowance and other cash allowance if paid like FPP in banking jobs.

Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.

EPF and EPS Contribution chart

Scheme Name  Employees Contribution Employer Contribution
EPF  Min 12% 3.67%
EPS NA 8.33%
EPF/EPS Expenses  0.85%

Who Can Contribute under EPF or EPS ?

All such employees who are drawing Basic Pay more than Rs 15,000 compulsorily contribute to the Provident fund. The investment made under EPF are exempted under Income Tax Sec 80C up to Max limit of Rs 1,50,000. For such individual who draw basic salary between Rs 6501 to Rs 15,000 option are given for contribution.

The withdrawal of Provident fund are limited and subject to full filling the certain terms and condition.Check out for more details at EPFO Website including the type of form needed to be filled.

How To Calculate EPF and EPS contribution on Salary ?

The major part is the calculation of EPF or EPS contribution out of the salary withdrawn. How to calculate the EPF portion from the monthly salary withdrawn ?

Calculation of EPF or EPS contribution is simple, Just follow the different condition for calculation :

Condition 1  : Where the Calculation are made on standard term i.e. 12% for EPF and 8.33% on EPS On Basic Pay

For Basic Pay Rs 25000 

Contribution  Calculation  Amount
EPF by Employees 25000*12% 3000
EPS  Employer 15000*8.33 % 1250 approx
EPF Employer Share (25000*12% )- 1250 1750
EPF Admin Charge 25000*0.85% 212

Irrespective of the Basic Pay the contribution towards EPS is fixed at 8.33% of Rs 15,000/-.

Condition 2 : There are other option where the employer contribution are calculated on 3.67% on basic pay or flat Rs 15,000/-

Contribution  Calculation  Amount
EPF by Employees 25000*12% 3000
EPS  Employer 15000*8.33 % 1250 approx
EPF Employer Share (15000*3.67% ) 550.50
EPF Admin Charge 25000*0.85% 212

Irrespective of the Basic Pay the contribution towards EPS is fixed at 8.33% of Rs 15,000/-.

How to check Your EPF balance?

EPFO has updated themselves with the modern communication tools through SMS, Account statement etc. Check the EPF balance online following these steps :

Step 1 : Visit The EPFO link here

Step 2 : Select EPFO Office

Step 3 : Enter PF Account Number which is in the format : BH/MAS/0011111/000/0000222 EPFO Office Code/Establishment Code(Max. 7 Digits)/Extension(Max. 3 digits)/Account Number (Max 7 digit) (PF Account Number may not have Extension code, in that case leave it blank).

Step 4 : Enter your Mobile Number and Accept Terms and condition and Submit.

Subscriber will get the message containing their PF balance as on date.

Frequently Asked Question on EPF  & EPS

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