The Employees’ Provident Fund Organisation, (EPFO), on December 19, 2025, issued a circular providing detailed instructions on the rectification of erroneous Employees’ Pension Scheme (EPS) contributions, addressing cases where employers have either wrongly remitted EPS contributions for ineligible members or failed to remit EPS contributions for eligible members. The circular aims to ensure uniform compliance and efficient service delivery across all EPFO field offices.
The circular identifies two key scenarios. In Scenario I, where EPS membership was erroneously allowed to ineligible members, the wrongly remitted EPS contributions along with applicable interest are required to be worked out and physically transferred from Account No. 10 to the appropriate Provident Fund Account (Account No. 1) or to the exempted trust, as applicable. In such cases, the corresponding pension service entries must be deleted from the member’s records. In Scenario II, where EPS membership was wrongly denied to eligible members, the due EPS contributions with interest must be transferred from Account No. 1 or from the exempted trust to Account No. 10, and the pension service, along with any non-contributory period (NCP), must be duly credited to the member’s account.
EPFO has directed all Additional Central PF Commissioners and Regional/Assistant PF Commissioners to strictly follow the prescribed rectification process, including physical fund transfers between accounts or trusts wherever required. The instructions are intended to standardise corrective action, safeguard members’ pension entitlements, and prevent recurrence of such errors in EPS contribution handling.
[Notification No. WSU/2025/E-961539]
