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EPFO issues guidelines to correct EPS contribution errors; check key details
3 min read | Updated on December 22, 2025, 17:47 IST
SUMMARY
In cases where EPS contributions were erroneously remitted for ineligible employees, the EPFO said the wrong pension amount would be recalculated along with interest at the rate declared by the organisation.
EPFO has set corrective procedures for both exempted and unexempted establishments to handle errors.
The Employees’ Provident Fund Organisation (EPFO) has issued guidelines to address instances of erroneous remittance or non-remittance of Employees’ Pension Scheme (EPS) contributions, saying that these errors have posed a challenge in smooth service delivery for members.
“Instances of erroneous remittance of EPS contributions for members ineligible for EPS or non- remittance of EPS contributions for members eligible for EPS membership by the employers have posed a challenge in efficient service delivery to such members," the EPFO said in a circular on December 19, 2025.
Cases involving ineligible EPS members
In cases where EPS contributions were erroneously remitted for ineligible employees, the EPFO said the wrong pension amount would be recalculated along with interest at the rate declared by the organisation.
Cases involving eligible EPS members
In errors that involve eligible employees who were wrongly excluded from EPS, the pension contributions, along with interest, would be transferred to the pension account, the EPFO said.
EPFO new EPS correction rules
| Establishment Type | Scenario | Action | Contributions Transferred? | Account Involved | Notes |
|---|---|---|---|---|---|
| Unexempted | I - Erroneous allowing of EPS membership for ineligible members | EPS contributions to be recalculated with interest | Yes | EPFO (A/c No.1 → A/c No.10) | Total amount physically transferred; erroneous Pension Service deleted from Member's Account |
| Exempted | I - Erroneous allowing of EPS membership for ineligible members | EPS contributions to be recalculated with interest | Yes | EPFO or Trust (A/c No.10 → Trust) | Total amount physically transferred; erroneous Pension Service deleted from Member's Account |
| Unexempted | II - Erroneous disallowing of EPS membership for eligible members | Due EPS contributions recalculated with interest | Yes | EPFO (A/c No.1 → A/c No.1) | Total amount physically transferred; Pension Service & Non-Contributory Period credited to Member's Account |
| Exempted | II - Erroneous disallowing of EPS membership for eligible members | Due EPS contributions recalculated with interest | Yes | Trust → EPFO (instead of A/c No.10) | Total amount physically transferred; Pension Service & Non-Contributory Period credited to Member's Account |
As per EPFO guidelines, physical transfer of funds would be done whenever required to ensure accurate accounting.
These rules are aimed at ensuring that members get efficient service delivery and their pension records are accurate. They are expected to help avoid discrepancies in the future and protect employees' pension entitlements.
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