Top News

EPFO Update:Recently, there has been a big disclosure from EPFO ​​(Employees’ Provident Fund Organisation), which has put lakhs of employees working in private and government sector in tension. The news is that strict conditions to contribution in EPS (Employee Pension Scheme) are applicable on some employees, which can badly affect their upcoming pension.

If the contribution to EPS (Employee Pension Scheme) stops or is beyond the prescribed limit, then the risk of getting zero pension i.e. not getting it at all in future increases a lot. This problem especially affects those people whose salary is above the prescribed limit or who did not make the required contribution in the scheme at the right time.

To which employees does the EPS contribution limit apply?

Contribution under the EPS (Employee Pension Scheme) scheme is taken only from those employees whose basic salary and DA come within the prescribed limit. Many high salaried employees are not allowed EPS (Employee Pension Scheme) deduction, due to which their retirement pension automatically gets affected. Also, those employees who do not opt-in to EPS (Employee Pension Scheme) within the time limit after starting the job under EPFO ​​(Employees’ Provident Fund Organization), they may also be deprived of this benefit.

What can happen in future if there is no EPS contribution?

If there is continuous contribution in the PF (Provident Fund) account of an employee, but money is not being deposited in the EPS (Employee Pension Scheme) account, then it directly impacts his retirement pension. If there is no EPS (Employee Pension Scheme) contribution, the PF (Provident Fund) money is received on retirement, but the system of monthly pension ends.

Meaning, there will be no benefit from regular financial security in old age. The purpose of EPS (Employee Pension Scheme) is to provide fixed monthly income after retirement, but if contribution is not made then this benefit ends and the financial risk increases. Therefore, it is very important to understand why EPS (Employee Pension Scheme) contribution has been stopped and whether it can be started again. Many people remain unaware of the rules and regret it later, so awareness is the biggest protection.

Is later entry possible in EPS?

Many employees remain confused that if EPS (Employee Pension Scheme) is not deducted initially, can it be started later. According to the guidelines of EPFO ​​(Employees’ Provident Fund Organisation), entry into EPS (Employee Pension Scheme) is not possible in some special cases, especially when the employee has earned more than the salary limit in the first job and there is no record of EPS (Employee Pension Scheme) account.

However, if the employee is already an EPS (Employee Pension Scheme) member in some other organization and the PF (Provident Fund) and UAN (Universal Account Number) are linked even after the salary increases, then in some cases the EPS (Employee Pension Scheme) benefits can continue. But for this it is necessary to follow the formalities, document verification and EPFO ​​(Employees’ Provident Fund Organization) rules. Taking decisions without clear information can spoil future benefits.

What should employees do?

To keep EPS (Employee Pension Scheme) benefits safe, employees should keep checking the details of their PF (Provident Fund) and pension accounts from time to time. An important step is to check the status of service history, joint declaration, nomination, salary details and EPS (Employee Pension Scheme) deduction by logging on to the UAN (Universal Account Number) portal.

If you notice any issue in EPS (Employee Pension Scheme) deduction, immediately contact the HR department or PF (Provident Fund) office. Apart from this, employees should also check that their documents, especially KYC (Know Your Customer), Aadhaar and bank details are correctly linked.