The Employees’ Provident Fund Organization (EPFO) has issued a circular detailing how mistakes in Employees’ Pension Scheme (EPS) contributions made by employers will be corrected.
These errors, such as wrong deposits or missed contributions, have affected efficient service delivery to members.
The new guidance aims to ensure uniformity across EPFO offices and prevent employees from being negatively impacted by employer mistakes.
EPS Deposited for Ineligible Members
Sometimes, employers mistakenly deposit EPS contributions for employees who are not eligible for the scheme.
EPFO has clarified that:
The wrongly credited amounts will be recalculated with applicable interest.
These amounts will be moved back to the correct provident fund account.
Any pension service period added incorrectly will be removed to maintain accurate records.
This ensures that the EPS accounts reflect the correct contributions and service periods.
EPS Not Deposited for Eligible Members
In other cases, EPS contributions are not deposited for eligible employees and are instead added to the PF or trust account.
EPFO has stated that:
The correct EPS contributions will be calculated along with interest and credited to the pension account.
The pension service period will be updated in the member’s record.
Any non-contributory periods (NCP) will also be adjusted.
Will Subscribers Be Affected?
EPFO assures that members will not face financial loss due to these errors.
All corrections include applicable interest, and pension service records will be accurately updated.
Accurate EPS records are essential for pension eligibility and retirement benefits, so these adjustments help protect the long-term interests of subscribers.
