The Employees’ Provident Fund Organisation (EPFO) has issued a fresh directive to correct errors in Employees’ Pension Scheme (EPS) contributions, after finding multiple cases where pension money was either wrongly deposited or not deposited at all.
In an internal communication dated December 19, 2025, EPFO acknowledged that many employers have been making incorrect EPS remittances, either by enrolling employees who were not eligible for EPS or by failing to deposit EPS contributions for those who were eligible. These mistakes, EPFO said, have created serious problems in providing smooth pension-related services to members.
To ensure uniform compliance across the country, EPFO has now laid down a clear correction framework for field offices.
What went wrong with EPS contributions?
EPFO highlighted two major types of errors:
1. EPS membership wrongly allowed to ineligible employees
In some cases, employers deposited pension contributions for employees who were not eligible for EPS membership. This happened in both exempted and unexempted establishments.
2. EPS membership wrongly denied to eligible employees
In other cases, employers failed to deposit EPS contributions for employees who were actually eligible for pension, leading to missing pension service records.
Both errors affect a member’s pension history and can create issues at the time of retirement.
How EPFO will fix wrong EPS enrolment
For employees who were wrongly enrolled in EPS, EPFO has instructed that:
The wrongly deposited EPS amount will be worked out along with interest (at EPFO-declared rates).
The total amount will be transferred back to the appropriate provident fund account or trust.
Any incorrect pension service entries will be deleted from the member’s records.
The physical transfer of funds will take place either within EPFO (A/c No.10 to A/c No.1) or from EPFO to the trust, depending on whether the establishment is exempted or unexempted.
How EPFO will correct missing EPS contributions
For employees who were eligible for EPS but wrongly excluded, EPFO has clarified that:
The due EPS contribution will be calculated along with applicable interest.
The amount will be physically transferred to the pension account.
The member’s pension service period, including any non-contributory period, will be correctly credited to their account.
In exempted establishments, the amount will move from the trust to EPFO, ensuring the pension record is updated centrally.
Why this clarification matters
EPFO admitted that such errors directly impact members’ pension benefits and delay services. With this circular, the organisation aims to bring consistency and clarity in handling EPS-related mistakes across all regional and zonal offices.
The instructions have been issued to all senior EPFO officials to ensure uniform implementation, so that employees do not suffer due to employer-level errors in pension contributions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified professional before making investment decisions.