EPFO Rules: EPFO i.e. Employees Provident Fund Organisation keeps issuing alerts from time to time for the convenience of the customers. In such a situation, if you are also an employee subscriber of EPFO, then this news can prove to be useful for you. Actually, Employees Provident Fund Organisation (EPFO) has made a major change in its Electronic Challan-cum-Return ( ECR ) system.

 

After this, some employees will not be able to contribute to the Employees Pension Scheme ( EPS ). This change will affect those employees whose age is more than 58 years or whose salary is more than Rs 15,000 and who joined EPS on or after 1 September 2014.

What is the new rule of EPFO?

According to EPFO ​​rules, when an employee turns 58, it is no longer possible for him to contribute to EPS. However, if the employer has deemed an employee eligible for deferred pension, contributions can continue in such cases. Furthermore, employees whose salary is more than Rs 15,000 and who joined EPS on or after September 1, 2014, are also not considered eligible for EPS. Earlier, in many cases, even such employees were receiving contributions, which was against the rules, but this will not happen after the introduction of the new system.

The EPFO ​​has launched a new Electronic Challan-cum-Return (ECR) system, which will be implemented from the September 2025 pay month. The system will now automatically detect and prevent incorrect EPS contributions. If an employer contributes to EPS for an employee over 58 years of age or earning more than Rs 15,000, the system will immediately flag it. This means that incorrect contributions will be stopped upfront, eliminating the need for corrections or disputes late.

Why this change was made?

According to the EPFO, previously, incorrect or ineligible EPS contributions were a problem for both employers and employees, sometimes leading to disputes. The new system will help eliminate these problems. The EPFO ​​states that this change will improve post-filing and reduce disputes. Pension contributions will now be made only for employees who are actually eligible for EPS. This will increase transparency in the system and prevent erroneous contributions. This move will make the EPS pension system more clean and efficient.