The EPS contribution is always computed on a wage ceiling of Rs 15,000 per month, regardless of the employee’s actual PF wages. This cap has been in place since September 2014. Zoho Payroll applies this ceiling automatically, ensuring EPS contribution is always Rs 1,250 per month maximum. Employees cannot voluntarily increase EPS contributions.
To receive EPS pension on retirement, an employee must have at least 10 years of qualifying service. Pensionable age is 58, with an option for early pension from age 50 with a reduced payout. EPS does not generate a separate account balance like EPF; instead, it creates a pension entitlement. Zoho Payroll’s payroll reports show the EPS amount contributed each month.
EPF builds a corpus that the employee can withdraw on exit (subject to conditions). EPS provides a monthly pension after retirement and is not withdrawable as a lump sum in most cases. An employee with less than 10 years of service can claim a ‘Scheme Certificate’ or withdraw the EPS share. Zoho Payroll tracks both amounts separately in the contribution reports.
EPS (Employee Pension Scheme) in Zoho Payroll is the pension component within the employer’s PF contribution. Of the employer’s 12% PF contribution, 8.33% (capped at Rs 1,250 per month based on Rs 15,000 ceiling) goes to EPS. Zoho Payroll computes this split automatically and includes it in the monthly EPFO ECR file.
EPS is not directly managed within Zoho Payroll but through EPFO. Employees with fewer than 10 years of qualifying service can claim the EPS corpus or obtain a Scheme Certificate on exit. Zoho Payroll provides the monthly EPS contribution amounts in payroll reports to support EPFO-related filings and employee queries.
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