What is EPF wages and EPS Wages?
EPF stands for Employee Provident Fund and EPS stands for Employee Pension Scheme.
EPF wages are the wages on which the employee and employer contributions towards the EPF are calculated. In India, the EPF is a mandatory savings scheme for salaried employees, where both the employee and employer contribute a certain percentage of the employee’s salary towards the EPF account. The EPF wages typically include basic salary, dearness allowance, and retention allowance.
What is EPS Wages?
EPS wages, on the other hand, are the wages on which the pension contributions are calculated. The EPS is a pension scheme that is linked to the EPF and is applicable to employees who are members of the EPF. The pension contributions are based on a percentage of the employee’s EPS wages and are made by the employer.
It’s worth noting that the EPF and EPS wages may not be the same, as the calculation of the contributions is based on different criteria. However, both are important components of an employee’s overall compensation and retirement benefits.