u/shroooooooov

Used Chat GPT for grammar.

TLDR added below

Hi everyone,

I recently joined a new company and, while checking my EPFO passbook, noticed that part of my employer's PF contribution is being allocated to EPS (Pension Scheme) instead of the full employer contribution going to EPF.

My situation:

• I started my career in 2021 and became an EPF member for the first time in July 2021.
• My Basic Pay has never been below ₹15,000 since I started my career.
• My understanding is that since I was a new EPF member after 1 September 2014 and my Basic + DA/PF wages were above ₹15,000 when I first joined, I should not be eligible for EPS.
• I recently joined a new company, which has been operating for around 7 years and has 100+ employees.
• After joining, I noticed that the employer's contribution is being split between EPF and EPS in my passbook.

I emailed HR asking them to correct the EPS allocation and route the full employer contribution to EPF.

My email to HR:

>I joined the EPF system for the first time in July 2021 with a starting basic salary above ₹15,000. According to EPFO guidelines, I’m not qualified for EPS scheme.

Could you please initiate the rectification process with EPFO office to reallocate the accumulated EPS amounts into my EPF account and update the payroll system to stop the EPS split going forward?

HR's reply (Forwarded from the company's EPFO consultant):

>Though the employee's basic salary is ₹15,000 above, for the purpose of pension eligibility and EDLI benefit, the company has enrolled him as an EPS eligible employee. If he is so particular about exempt from EPS, please provide an exit date on 31-07-2026 and enroll him again by entering actual Basic + DA in PF salary in webportal.
However, to make corrections in the pf statement it will take an indefinite period of time.

I'm confused by this response because my understanding is that EPS and EDLI are separate schemes, and being eligible for EDLI shouldn't automatically make me eligible for EPS.

They are also asking to provide an exit date and then re-enroll with actual data.

My questions:

1. Am I correct that I am not eligible for EPS based on my first EPF membership being in July 2021 with wages above ₹15,000?
2. Is the company's explanation regarding EPS and EDLI correct?
3. Is providing an exit date and re-enrolling the correct way to fix this?
4. What happens to the EPS contributions already made? Can they be reallocated to EPF?
5. Could this process affect my EPF service history, date of joining, UAN, or future PF transfer/withdrawal?
6. Should I first raise a grievance with EPFO directly before agreeing to the exit/re-enrolment process?

I would appreciate advice from anyone familiar with EPFO/EPS rules or PF corrections, especially if you've experienced something similar.

TL;DR: I first joined EPF in July 2021 with Basic Pay always above ₹15,000. My new employer is splitting part of the employer PF contribution into EPS. HR says they enrolled me in EPS for "pension eligibility and EDLI benefit" and wants me to provide an exit date and re-enroll to correct it. Is this correct, and what should I do about the EPS contributions already made?

Used Chat GPT for grammar.

TLDR added below

Hi everyone,

I recently joined a new company and, while checking my EPFO passbook, noticed that part of my employer's PF contribution is being allocated to EPS (Pension Scheme) instead of the full employer contribution going to EPF.

My situation:

• I started my career in 2021 and became an EPF member for the first time in July 2021.
• My Basic Pay has never been below ₹15,000 since I started my career.
• My understanding is that since I was a new EPF member after 1 September 2014 and my Basic + DA/PF wages were above ₹15,000 when I first joined, I should not be eligible for EPS.
• I recently joined a new company, which has been operating for around 7 years and has 100+ employees.
• After joining, I noticed that the employer's contribution is being split between EPF and EPS in my passbook.

I emailed HR asking them to correct the EPS allocation and route the full employer contribution to EPF.

My email to HR:

>I joined the EPF system for the first time in July 2021 with a starting basic salary above ₹15,000. According to EPFO guidelines, I’m not qualified for EPS scheme.

Could you please initiate the rectification process with EPFO office to reallocate the accumulated EPS amounts into my EPF account and update the payroll system to stop the EPS split going forward?

HR's reply (Forwarded from the company's EPFO consultant):

>Though the employee's basic salary is ₹15,000 above, for the purpose of pension eligibility and EDLI benefit, the company has enrolled him as an EPS eligible employee. If he is so particular about exempt from EPS, please provide an exit date on 31-07-2026 and enroll him again by entering actual Basic + DA in PF salary in webportal.
However, to make corrections in the pf statement it will take an indefinite period of time.

I'm confused by this response because my understanding is that EPS and EDLI are separate schemes, and being eligible for EDLI shouldn't automatically make me eligible for EPS.

They are also asking to provide an exit date and then re-enroll with actual data.

My questions:

1. Am I correct that I am not eligible for EPS based on my first EPF membership being in July 2021 with wages above ₹15,000?
2. Is the company's explanation regarding EPS and EDLI correct?
3. Is providing an exit date and re-enrolling the correct way to fix this?
4. What happens to the EPS contributions already made? Can they be reallocated to EPF?
5. Could this process affect my EPF service history, date of joining, UAN, or future PF transfer/withdrawal?
6. Should I first raise a grievance with EPFO directly before agreeing to the exit/re-enrolment process?

I would appreciate advice from anyone familiar with EPFO/EPS rules or PF corrections, especially if you've experienced something similar.

TL;DR: I first joined EPF in July 2021 with Basic Pay always above ₹15,000. My new employer is splitting part of the employer PF contribution into EPS. HR says they enrolled me in EPS for "pension eligibility and EDLI benefit" and wants me to provide an exit date and re-enrol to correct it. Is this correct, and what should I do about the EPS contributions already made?

Hi everyone,

I'm looking for advice from people who have gone through the process of buying a residential plot and constructing a house using a plot + construction loan.

My financial situation:

• Age: 26M (Unmarried)
• My in-hand salary: ₹1.2 lakh/month (post-tax)
• Brother's salary: approx ₹50k/month
• Combined monthly household expenses: ₹35k-45k
• Current savings available: approx ₹40 lakh
• We may also receive a few lakhs from relatives (money my mother had previously lent them).

Property details:

• Location: Tamil Nadu
• Plot: DTCP-approved residential plot
• Plot cost: ~₹75 lakh
• Estimated construction cost: ₹35-45 lakh (This is just my rough estimation)
• Total project cost: ~₹1.1-1.2 crore

Our plan is to purchase the plot first and start construction within a few months. We're planning to take a joint plot + construction loan in both my and my brother's names, hoping that our combined income will improve our loan eligibility.

I have a few questions:

1. Is taking a combined plot + construction loan a better approach than taking separate loans?
2. How much down payment should I expect? How much percentage of plot cost and construction cost will banks finance?
3. Which banks are generally considered the best for plot + construction loans (interest rates, processing, flexibility, customer experience, etc.)?
4. What legal, technical, or bank-related checks should I complete before buying the plot (title, EC, patta, DTCP documents, approvals, etc.) to avoid loan rejection or future issues?
5. Are there any hidden charges, conditions, or common mistakes I should be aware of before applying?
6. Since this will be a joint loan with my brother, are there any ownership, tax, or future complications we should think about now?
7. If you've gone through a similar purchase, is there anything you wish you had known beforehand?

Any advice, experiences, or things to watch out for would be greatly appreciated. Thanks!

Hi everyone,

I'm looking for advice from people who have gone through the process of buying a residential plot and constructing a house using a plot + construction loan.

My financial situation:

• Age: 26M (Unmarried)
• My in-hand salary: ₹1.2 lakh/month (post-tax)
• Brother's salary: approx ₹50k/month
• Combined monthly household expenses: ₹35k-45k
• Current savings available: approx ₹40 lakh
• We may also receive a few lakhs from relatives (money my mother had previously lent them).

Property details:

• Location: Tamil Nadu
• Plot: DTCP-approved residential plot
• Plot cost: ~₹75 lakh
• Estimated construction cost: ₹35-45 lakh (This is just my rough estimation)
• Total project cost: ~₹1.1-1.2 crore

Our plan is to purchase the plot first and start construction within a few months. We're planning to take a joint plot + construction loan in both my and my brother's names, hoping that our combined income will improve our loan eligibility.

I have a few questions:

1. Is taking a combined plot + construction loan a better approach than taking separate loans?
2. How much down payment should I expect? How much percentage of plot cost and construction cost will banks finance?
3. Which banks are generally considered the best for plot + construction loans (interest rates, processing, flexibility, customer experience, etc.)?
4. What legal, technical, or bank-related checks should I complete before buying the plot (title, EC, patta, DTCP documents, approvals, etc.) to avoid loan rejection or future issues?
5. Are there any hidden charges, conditions, or common mistakes I should be aware of before applying?
6. Since this will be a joint loan with my brother, are there any ownership, tax, or future complications we should think about now?
7. If you've gone through a similar purchase, is there anything you wish you had known beforehand?

Any advice, experiences, or things to watch out for would be greatly appreciated. Thanks!

Current situation:

• Age: 26
• Location: Bangalore
• Monthly take-home salary: ~₹1.2 lakh (after tax and deductions)
• Tax regime: New regime
• Savings account balance: ₹12 lakh
• Bank FDs: ₹20 lakh
• SIP: ₹3,000/month (₹1,500 in Nifty 50 Index Fund + ₹1,500 in Small Cap Fund)
• Other expenses as per usage (Groceries, fuel, utilities)

Family situation:

• Lost my father around 10 years ago.
• Currently living with my mother and younger brother in Bangalore.
• Rent is ₹20,000/month, shared between me and my brother.
• My brother earns around ₹50,000/month and has approximately ₹7 lakh across savings and FDs.
• We do not have any ancestral property, inheritance, or existing land.

Goal:

We want to buy land and construct a proper 3BHK house in our native place that can serve as our family's permanent home. Since we don't have inherited property and real estate is expensive, having separate houses for each sibling is not practical at the moment.

Land prices in our native place are around ₹15 lakh per cent (435 sq. ft.), depending on locality. It will easily cross ₹1Cr for a decent 3BHK house in a decent area. We will most likely need a loan for both land purchase and house construction because our current savings may not be sufficient.

My concerns/questions:

1. Since we are actively looking for land/house opportunities, where should I park my money?
   • Capital safety is important.
   • Liquidity is important because I may need funds for a down payment at short notice.
   • I am okay with moderate returns but don't want to take significant risks.
2. Should I continue keeping most of my money in FDs, or are there better alternatives for a 1–3 year time horizon?
3. I am currently investing only ₹3,000/month in mutual funds because of the upcoming house goal. Should I increase the SIP amount or avoid increasing equity exposure until the house purchase is completed?
4. Is taking a combined land + construction loan a good idea, or should land and construction financing be handled separately?
5. I am on the new tax regime and roughly pay around ₹12,000/month in income tax. Are there any legitimate ways to reduce my tax outgo, or is the new regime generally the better option for someone in my situation?

Additional context regarding my mother:

When my father was alive, he took a business-related personal loan in my mother's name after a bank manager suggested it due to existing loans in my father's name. The loan amount was around ₹10 lakh.

Unfortunately, my father passed away from a heart attack around two months after the loan was sanctioned. My mother paid EMIs for some time and repaid around ₹4–5 lakh, but eventually she could not continue. The account later became an NPA, and a legal case was filed by the bank. Over the years, with accumulated interest, the outstanding amount is now around ₹14 lakh.

Because of this unresolved issue, I am not comfortable keeping significant investments or FDs in my mother's name purely for tax-saving purposes.

Also, we currently have no plans to make my mother a co-owner, co-borrower, guarantor, or part of any future property transaction.

Questions regarding this:

1. Given our current financial position, should we consider negotiating a one-time settlement with the bank before planning a house purchase?
2. For people who have dealt with old NPA personal loans, what percentage of the outstanding amount do banks typically agree to accept in a one-time settlement? I understand every case is different, but I would like to know what range is commonly seen in practice.

One more clarification regarding priorities:

I understand some people may suggest settling the old loan before thinking about buying a house. I am open to hearing different opinions on that.

However, owning a house in our native place has been a long-term family goal for many years and is currently our top financial priority. We do not own any house, land, or inherited property, and whenever we visit our native place for family functions or other occasions, we have to depend on staying with relatives.

Because of this, our current plan is focused on creating a permanent home for our family while also understanding whether the old loan should be settled now, negotiated through a one-time settlement, or handled in some other way.

I come from a family where nobody has much financial knowledge, so I've mostly been keeping money in savings accounts and FDs. I would appreciate any guidance on asset allocation, tax planning, loan strategy, emergency funds, and mistakes I should avoid.

*Used Chat GPT for text formatting

Edit 1: Text formatting

This question is for the Teamcenter Developers from India.

People from other countries can also provide their input.

Please tell me your experience with teamcenter development and your current CTC.

I'm asking this because I'm not able to find the current market standard for PLM application developers.

My experience: 5 yrs

CCTC: 16 LPA fixed + 2 LPA variable

Thanks in advance

Hi everyone,

I’ll be joining a new company in Yelahanka soon, but currently I’m staying near Brookfield, Marathahalli with my family. Relocating isn’t an option for at least a few months, so I’m trying to figure out a sustainable daily commute.

The distance is around 25-30 km one way, and my company doesn’t provide cab facilities.

I wanted to check:

1. Are there any reliable private cab / monthly cab services available for daily office commute in Bangalore?

2. Are carpool setups practical for this kind of distance?

3. If you’re doing a similar long commute daily, how are you managing it (cab, bike, bus, carpool, etc.)?

4. How bad it will affect my health if I use a bike?

I’m okay with paying a fixed monthly amount if the service is reliable and consistent.

Any suggestions, contacts, personal experiences or reality checks are welcome. Thanks in advance!