Are You Affected By PF Wrong Contribution? Check EPFO Directive, Know How To Correct Error
The EPFO has issued latest guidelines over remitting erroneous PF contributions affective EPS membership. Read on.
The Employees’ Provident Fund Organisation (EPFO) has issued a new directive to address irregularities in Employees’ Pension Scheme (EPS) payments, after the discovery of several cases where EPS membership was incorrectly granted to ineligible members or EPS membership was wrongly denied to eligible members.
EPS contributions Erroneous remittance: EPFO Circular
According to a circular released by the EPFO, there have been multiple cases of employers remitting PF contributions for members who are not qualified for EPS or failing to remit EPS contributions for members who are eligible for EPS membership. The EPFO issued the guidelines for field offices that define the possible scenarios of such erroneous remittances as well as the corrective measures to be taken. The EPFO said that these issues have posed a serious challenge to efficient service delivery to such members.
The EPFO circular issued on December 19, 2025, said, “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. Accordingly, the possible scenarios of such erroneous remittances as well as the rectifications to be carried out are provided as below for uniform compliance by all the Field Offices.”
Two major types of errors
The EPFO guidelines focused on two major types of errors that include:
There have been cases when employers have deposited pension contributions for employees who were ineligible for EPS membership.
In other cases, employers have not deposited EPS contributions for employees who were eligible for pension.
Rectifications to be done
For employees who were wrongly enrolled in EPS, EPFO has instructed that:
Erroneously remitted EPS contributions will be worked out along with interest at EPFO-declared rates. The total amount will be transferred back to the appropriate PF account. The corresponding erroneous Pension Service will be deleted from the member's account.
EPFO-declared interest rate
For employees who were eligible for EPS but wrongly excluded, the EPFO has instructed that: Due EPS contributions will be worked out along with interest at the EPFO-declared interest rate. The worked out total amount will be physically transferred to the pension account. The corresponding Pension Service period, including any non-contributory period, will be credited to the member's account.
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