EPF and NPS (Can Employer contribute to both out of CTC)

Q & A ForumCategory: Provident Fund (EPF & PPF)EPF and NPS (Can Employer contribute to both out of CTC)
sanjaymalh asked 3 years ago
Dear Sir, I have a  query. Can a private company as a employer company contribute 2% to PF and 10% to nps (out of 12% employer PF contribution as part of CTC). Our company is presently covered under EPF regulations where 12% employee share is deducted and 12% employer share is paid uner EPF regulations. Thank you, Sanjay 9811725055
2 Answers
Sreekanth Staff answered 3 years ago
Hi, I believe they can offer both EPF and NPS as well. However if the aggregate of contributions made by the employer towards employee provident fund (EPF), NPS and superannuation exceeds rupees 7.50 lakh in a year, the excess is treated as taxable perquisite. Did you check with your employer on this?
sanjaymalh replied 3 years ago

Sir, the employer is not aware of it and therefore I am checking. Somebody told me that since our company is covered in PF regulation, employer can contribute only in one fund PF or NPS and not in both as 2% and 10%. Thank you.

Sreekanth Staff answered 3 years ago
Yes, regarding the Percentage, 12% is mandatory and it can not be bifurcated.
sanjaymalh replied 3 years ago

Somebody told me that since our company is covered in PF regulation, employer can contribute only in one fund PF or NPS and not in both as 2% and 10%. Is this statement correct. Can you share such PF circular with us. Thank you.

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