Calculation of EPS Contribution for Employee with First Salary Above Rs. 15,000 in India
T he Employee Pension Scheme (EPS) is a social security scheme that provides pension benefits to employees in India. The scheme is applicable to employees who are members of the Employees' Provident Fund (EPF) and earn a monthly salary of up to Rs. 15,000. However, employees who earn a salary above this limit are not eligible for the EPS scheme , but they can opt for the National Pension System (NPS) or other pension schemes to save for their retirement. If an employee's first salary is more than Rs. 15,000 , they are not eligible for the EPS scheme. In this case, the employer is not required to contribute towards the EPS scheme on behalf of the employee. The employee can, however, choose to contribute towards the EPS scheme voluntarily. Here is an example to help understand the calculation of EPS contributions for an employee whose first salary is more than Rs. 15,000: Suppose an employee's first salary is Rs. 20,000 per month. In this case, the employee is not eligible