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EPFO: Who Cannot Join EPS? Know the Key Rule

EPFO: Who Cannot Join EPS? Know the Key Rule

: There is a big update for employees in various sectors. Especially if you are an EPFO member, then this article is made for you. As per EPFO, If your wages were more than 15,000 at the time of joining your first job, you are not eligible for EPS membership. Yes you’ve heard it right.

EPFO’s Major Rules 

But still your EPS deduction happening? Then there is a solution. You can reach out your employer. Not only that, If resolved, raise a complaint on EPFiGMC. People also often asked, What to do if it’s already created? ‘I have raised multiple grievances and employer had also sent communication to EPFO.’ Then employee have to talk with employer.

Employees’ Pension Scheme (EPS) is an important retirement benefit available to eligible EPF subscribers. However, many employees are unaware that their salary at the time of joining their first job plays a crucial role in determining EPS membership.

According to EPFO rules, employees whose monthly wages exceeded Rs 15,000 when they joined their first job are generally not eligible to become members of the Employees’ Pension Scheme (EPS). Such employees can contribute to the Employees’ Provident Fund (EPF), but they may not receive pension benefits under EPS.

The rule is particularly important for private-sector employees planning their long-term retirement savings. Experts advise employees to review their EPF and EPS status regularly and understand how their salary structure impacts future pension benefits. Employees are encouraged to check their EPFO records and consult their employer or EPFO officials if they have any doubts regarding their EPS eligibility.

According to the EPFO, joining PF is not mandatory for employees earning more than Rs 15,000 (Basic Salary + DA) if they are not already PF members. This means that employees starting a new job and joining PF for the first time can opt out of PF membership . But if the employee is already an EPF member, their PF will continue in their new job. The EPFO ​​states, “If an employee is already a PF member, they will remain covered under the PF even if their salary exceeds Rs 15,000.”

An employee can voluntarily join the PF account.

Additionally, the EPFO ​​has introduced another important option. If both the employee and employer wish, individuals earning more than ₹15,000 can voluntarily join the PF. This option is provided under Paragraph 26(6) of the PF scheme.

Must be deposited in the EPF office within 6 months

EPFO has clarified that, “This option must be submitted to the EPF office within 6 months of joining the job (EPFO 6 months rule for voluntary PF). Failure to meet the deadline may make it difficult to become a member later. According to EPFO, even if both the employee and the employer agree, the membership will be valid only if the Para 26(6) option is submitted within the stipulated time.”

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Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility... Read More

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