Employees Provident Fund Organisation (EPFO) issued a circular dated 19 December 2025 prescribing a uniform mechanism for rectification of erroneous Employees’ Pension Scheme (EPS) contributions. The circular addresses two recurring issues: (i) erroneous grant of EPS membership to ineligible employees, and (ii) wrongful denial of EPS membership to eligible employees. For ineligible members wrongly covered under EPS, the instructions mandate computation of wrongly remitted EPS contributions along with applicable interest and physical transfer of amounts from Pension Account No.10 to Provident Fund Account No.1 (or to the PF Trust in exempted establishments), along with deletion of incorrect pension service. Conversely, where eligible members were wrongly denied EPS coverage, due pension contributions with interest must be transferred from PF accounts or Trusts to Account No.10, and corresponding pension service (including non-contributory periods, if any) must be credited. These directions aim to ensure accurate pension records, timely corrections, and consistent compliance across all EPFO field offices.
Employees Provident Fund Organisation
(MINISTRY OF LABOUR & EMPLOYMENT GOVERNMENT OF INDIA)
Head Office
Plate A. Ground Floor. Block II East Kid..vai Naoar. New Delhi-110023
Website: www.epfindia.gov.in, www.epfindia.nic.in
No.WSU/2025/E-961539/Refund of erroneous contribution/42 | Dated: 19 Dec 2025
All Addl.CPFCs(HQ)/Addl.CPFCs in charge of Zones
All RPFC-1s/RPFC-II/APFC (OICs) of ROs
Sub: Rectification of erroneous EPS contributions — regarding.
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.
Scenario-I – Erroneous allowing of EPS membership for ineligible members |
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Establishment Type |
PFContributions |
Pension Contributions |
Rectification to be done |
Physical amount to be transferred(Y/N) |
Unexempted |
Remitted to EPFO (A/c No.1) |
|
|
Yes(Within EPFO) |
from A/c No.10 to A/c No.1 by EPFO
|
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Exempted |
Remitted to Trust |
|
· Erroneously remitted EPS contributions need to worked out along with interest @ declared rate by EPFO
|
Yes(EPFO to Trust ) |
from A/c No.10 to Trust by EPFO
|
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Scenario-II – Erroneous disallowing |
of EPS membership for eligible members |
|||
Unexempted |
Remitted toEPFO(A/c No.1) |
Erroneously Remitted in A/c No.1 Instead of A/c No.10of EPFO |
|
Yes(Within EPFO) |
from A/c No.1 to A/c No.10 by EPFO
|
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Exempted |
Remitted to Trust |
Erroneously Remitted in
|
|
Yes (Trust to EPFO) |
from Trust to A/c No.10 by EXEMPTED TRUST
|
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(G R Suchindranath)
ACC(WSU)
