With the new salary limit of Rs 15,000 for calculating contributions, the total contributions – both by the employer and the employee will increase.
Employees with a monthly salary of up to Rs 15,000 who have not opted for voluntary membership earlier, will now be required to become members of all three schemes. Whether enrolled prior to or after September 1, both the employer’s and employee’s contributions will be on salary of Rs 15,000 unless an option is availed to contribute on a higher salary.
or Ex, a person who earns a monthly salary of Rs 12,000.
Earlier he was contributing 12% of 6500 i.e 780 towards PF, now he will have to shell out an 12 per cent of Rs 12,000 Rs 1,440 each month i.e extra Rs 660 every month
Similarly, even his employer’s contribution will increase to Rs 1,440 every month, which will be allocated as follows: Rs 1,000 (8.33% of Rs 12,000) towards pension Scheme and the balance Rs 440 towards PF . The employer would deposit an additional Rs 60 (0.5 per cent of Rs 12,000) towards insurance scheme.
And - Yes! employee joining after Sep 2014 are not eligible for Pension Scheme.
“For employees earning monthly salary exceeding Rs 15,000, the membership of Employee Pension Scheme is voluntary. For new members joining the scheme on or after 1 September 2014, the contribution is required to be made only under the PF and insurance scheme – as such employees are not eligible for membership under the pension scheme. Members limiting monthly contributions on the salary of Rs 6,500 earlier will now have to contribute on at least salary of Rs 15,000.”