EPS Contribution Revised from 8.33% to 9.49% (Higher Pension Employees)
The Ministry of Labour issued a notification on May 3rd, 2023 regarding the contribution of employers towards the Employees' Pension Scheme, 1995 for members who have opted to contribute jointly under paragraph 11 and are eligible. The employer's contribution will be increased by 1.16%, from the current rate of 8.33% to 9.49%, of the basic wages, dearness allowance, and retaining allowance of each member. This increased contribution will apply to basic wages, dearness allowance, and retaining allowance that exceed fifteen thousand rupees per month.
The employers who are hiring on cost to the company (CTC) basis has to redesign the CTC and need to work out the recovery/adjustment of extra amount paid/payable, if they want to, as the same is applicable w.e.f. September 1st, 2014.
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