No more EPS contribution possible after 58 or over ₹15,000 salary; here's why

The new system will flag wrong contributions towards the Employees' Pension Scheme (EPS) under two conditions:

• When an employee's wage is over ₹15,000 and s/he joined the EPS on or after September 1, 2014.

• When the employee has turned 58 years old in age.

By flagging the above cases, the revised ECR system will help reduce post-filing corrections and disputes.

When is EPS contribution not allowed?

According to EPFO rules, EPS contributions cease after the employee turns 58, excеpt in cases where the employer marks the employee eligible for deferred pension.

Further, EPS contribution is also not allowed for employees whose wages exceed ₹15,000 per month and who joined on or after 1 September 2014.

In the past, there have been several disputes due to wrong EPF contributions in the above situations. However, the new system will flag such cases.

"Normally, pension (EPS) contributions cease after the employee turns 58, excеpt in cases where the employer marks the employee eligible for deferred pension. The new system will flag cases where contributions are being made post-58 years of age without such marking," EPFO said in a FAQ on the new ECR system.

"For employees whose wages exceed ₹15,000 per month and who joined on or after 1 September 2014, they are ineligible for EPS, and the system will now flag such wrongful pension contributions before filing," it added.

The provident fund body further said, "This ensures that contributions only go into the appropriate schemes and reduces post-filing corrections and disputes."

The revamped ECR system is applicable from the wage month of September 2025.

The revised ECR has several features to enable employers to correctly file employees' contributions and details. It also allows system-based validations to prevent incorrect ECR submissions, such as incorrect wages, UAN and ineligible pension contributions.