Now, incorrect EPS contributions can be automatically detected and stopped through EPFO’s Electronic Challan-cum-Return (ECR) system.

EPFO Rules for EPS Contribution: There’s important news for employee account holders of the Employees’ Provident Fund Organisation. The EPFO ​​has made a major change to its Electronic Challan-cum-Return (ECR) system. Under this, some employees will no longer be able to contribute to the Employees’ Pension Scheme (EPS). This will directly impact employees who are over 58 years of age, or whose monthly salary is more than ₹15,000, and who joined EPS on or after September 1, 2014.

EPFO: What is the new rule?

According to EPFO ​​rules, it is not possible to contribute to EPS after an employee turns 58. However, if the employer has deemed an employee eligible for a deferred pension, contributions can continue in such cases. Employees with salaries above ₹15,000 and who joined EPS on or after September 1, 2014, were also not considered eligible for EPS, but this will no longer be the case with the introduction of the new system.

To this end, the EPFO ​​has launched a new Electronic Challan-cum-Return (ECR) system, which will be implemented from the September 2025 salary month. Under this, if an employer contributes to EPS for an employee above 58 years of age or with a salary above ₹15,000, the system will immediately flag it, meaning the incorrect contribution will be stopped upfront, eliminating the need for corrections or disputes later.

EPFO: How is the PF pension determined?

Currently, approximately 7 crore employees across the country are members of the Provident Fund (EPF).

Employers contribute 12 per cent to the EPS scheme. Of this, 8.33 per cent is transferred to the pension. This amount does not directly depend on the employee’s total basic salary.

The pension received under EPS does not depend on the total amount contributed to the EPF account; rather, the pension amount is based on certain calculations.

Under the limit on EPS contributions applicable since September 2014, a maximum of Rs 1,250 per month can be deposited into the EPS account.

If an employer’s contribution exceeds this amount, the remaining amount is deposited into the EPF account, and employees receive a pension based on the contribution.