Home >Money >Personal Finance >Contribution to EPS is not payable from employee’s PF share

I am 30 years old and married. Since January, I am investing 10,000 each in Axis Bluechip and Axis Midcap as well as 5,000 in Public Provident Fund (PPF). I have a monthly expense of 26,000. My aim is to build a corpus for financial freedom in 10-15 years and I also maintain an emergency fund. Please review my portfolio.


Your financial needs are primarily to create a retirement corpus and your investments will take care of the same. However, you can consider adding one more category to your portfolio—a multi-cap strategy. It is also good to diversify within fund houses, and in this category, you can consider Mirae Asset Emerging Bluechip. Your investment of 25,000 will accumulate to a principal corpus of 45 lakh in 15 years. At an average earnings rate of 10%, your total corpus will be 1.04 crore. Also, as your income increases, try to increase savings, as it is good to create a corpus for any other goal you may have.

If the Employees’ Pension Scheme (EPS) contribution is deducted after the age of 58 years by the company, does it come along with the final Employees’ Provident Fund (EPF) withdrawal? If I don’t get EPS deducted along with PF, will it be paid by the company?

—Name withheld on request

Contribution towards EPS is payable from the employer’s share of PF and there is no contribution payable by the employee. Also, there is no pension contribution to be paid when an employee crosses 58 years of age and is still in service. EPS membership ceases on completion of 58 years. If the total service is less than 10 years, the employee is not entitled for pension and in that case, the employee can apply for withdrawal benefit, wherein the pension fund can be withdrawn. If the service period is above 10 years, a scheme certificate has to be issued, which can be used to get pension.

I am 35 years old and married. I plan to have a child in 2021. My salary is 1.9 lakh and I have 9 lakh in EPF and 2.5 lakh in equity mutual funds (MFs). I am contributing 67,000 and 15,000 per month towards EPF and equity MFs, respectively. My monthly expenses are 50,000. I don’t have any liabilities and I own an apartment. Am I am on the right path to achieving my goals? Here is the break-up of my MF investments: 5,000 in ICICI Prudential Nifty Next 50; 2,500 each in ICICI Prudential Equity & Debt, Mirae Asset Large Cap and Mirae Asset Emerging Bluechip; as well as 2,000 in L&T Midcap.

—Name withheld on request

There is a potential to save another 58,000 per month. This amount can be used to create a corpus for your child’s education. Also, your current savings will suffice for your retirement planning. Your existing portfolio is in order, however, L&T Midcap has been an average performer in the last few years. Axis Midcap and DSP Midcap are consistent performers in the category and you can consider changing the same.

Also there’s no liquidity in your portfolio for any contingency or short-term needs. Consider adding a short-term debt fund to your portfolio.

Surya Bhatia is managing partner of Asset Managers. Queries and views at

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