EPFO: The Employees’ Provident Fund Organisation (EPFO) issues alerts from time to time for the convenience of its customers. So, if you are also an EPFO ​​employee or subscriber, then this news is for you. EPFO ​​has made a major change in its Electronic Challan-cum-Return (ECR) system. As such, some employees will no longer be able to contribute to the Employees’ Pension Scheme (EPS). This change will directly affect those employees who are above 58 years of age.

The Employees’ Provident Fund Organization (EPFO) administers the Employees’ Pension Scheme (EPS) for its members. Under this scheme, members receive a monthly pension after a specified period based on their service period and salary. The EPS was launched on November 16, 1995, replacing the Employees’ Family Pension Scheme, 1971.

Such employees cannot contribute to EPS

According to a report in Financial Express, under EPFO ​​rules, once an employee reaches the age of 58, they are not allowed to contribute to EPS . However, if the employer has declared an employee eligible for deferred pension, contributions can continue in such cases. Furthermore, employees earning more than Rs 15,000 and joining EPS on or after September 1, 2014, are also not eligible to contribute to EPS. However, in many such cases, pension contributions continued, which is against the rules. However, the new system will make it easier to stop such contributions.

It should be noted that when an employee starts work in the organized sector, they automatically become a member of the EPFO. Under this scheme, monthly deductions are made from their salary. The funds from these deductions are deposited into the EPF and EPS accounts. Employer contributions are also included, with 8.33% going to the EPS and 3.67% going to the EPF.

Know what is ECR?

The ECR is a mandatory monthly electronic return submitted by employers to the EPFO. It contains information on members’ salaries, contributions to the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance (EDLI) schemes. The ECR serves as both a return and a challan for payments. Meanwhile, the EPFO ​​has introduced several key reforms aimed at making its services more transparent, accessible, and user-friendly for millions of subscribers across the country.