Are you regularly contributing to EPF with a salary above ₹15k? Check now—your EPS pension might be at risk due to silent statutory rules. Act immediately to safeguard your retirement!
Are you regularly contributing to the Employees’ Pension Scheme (EPS) through your EPF account? If your salary is above ₹15,000, your pension contributions might be at risk, and EPFO has remained silent. Here’s why your hard-earned pension might never materialize and how to urgently address this issue.
What is EPS?
The Employees’ Pension Scheme (EPS) offers monthly pensions after retirement, funded by 8.33% of your employer’s EPF contribution, limited to ₹15,000 monthly salary.
The Silent EPS Circular – A Hidden Threat
EPFO Circular No. Pension-I/2014/16/33 from 22 August 2014 states clearly yet quietly:
“Employees whose basic + DA exceeds ₹15,000/month at joining are not eligible for EPS membership.”
This has been effective since 1 September 2014 but was poorly communicated, causing confusion.
How Does This Affect You?
If your first EPF joining date was after 1 September 2014 and your initial salary (basic + DA) exceeded ₹15,000, you’re legally not permitted EPS membership. Yet, many employers continue deductions, mistakenly assuming they are valid.
For example, someone who joined after September 2014 and has been contributing ₹1,250 per month (8.33% of ₹15,000) since then would have contributed approximately ₹1,42,500 by March 2024 (over 9.5 years). Unfortunately, without corrective action, this substantial amount may remain inaccessible.
Why Did This Happen?
Poor communication from EPFO allowed employers to incorrectly deduct ₹1,250/month towards EPS. Employees remain unaware they’re building a pension account that EPFO considers invalid.
Risks if You Are Affected
If you’re impacted:
- You will not receive an EPS pension.
- Contributions are inaccessible unless corrected.
- Complications in EPS records during job changes (Form 10D issues).
- Years of contributions become invalid.
Urgent Steps You Must Take
Step 1: Confirm Your Eligibility
- Did you join EPF after 1 Sept 2014?
- Was your salary initially over ₹15,000?
- If yes, you are NOT eligible for EPS.
Step 2: Notify Your Employer Now
- Immediately stop EPS deductions.
- Get a formal declaration from your employer confirming your EPS ineligibility.
- Ensure future contributions fully redirect to your EPF.
Step 3: Fix Past Contributions Quickly
- Your employer must urgently contact EPFO to reallocate past EPS contributions to your EPF.
- Immediate HR intervention is crucial.
Step 4: Correct Your Form 11
- Ensure your Form 11 clearly states non-eligibility status from your joining date.
Conclusion
Don’t let silent statutory rules compromise your pension. Check your UAN passbook immediately. If EPS contributions appear despite your ineligibility, act fast. Your future depends on it.
FAQs
Q1: Joined after Sept 2014 with salary ₹18,000. EPS eligible?
A: No, you’re not eligible.
Q2: Employer still deducting EPS. What to do?
A: Stop deductions immediately and ensure contributions redirect to EPF.
Q3: Can I reclaim EPS contributions?
A: Yes, your employer must request EPFO to shift EPS funds into EPF.
Q4: Joined before Sept 2014, now earning above ₹15,000. Still eligible?
A: Yes, your eligibility remains valid, though contributions remain capped.
Draft Letter to Employer:
[Your Name]
[Your Employee ID]
[Date]
[Employer’s Name]
[Company Name]
[Company Address]
Subject: Immediate Cessation and Correction of EPS Contributions
Dear [Employer’s Name],
I joined EPF after 1 September 2014 with an initial basic salary and DA exceeding ₹15,000, rendering me statutorily ineligible for EPS per EPFO Circular No. Pension-I/2014/16/33. However, EPS deductions have continued erroneously.
Please immediately halt EPS deductions, formally confirm my ineligibility, and promptly initiate the process to transfer past EPS contributions into my EPF account by coordinating with EPFO.
Your urgent attention to this matter is greatly appreciated.
Sincerely,
[Your Name]
[Your Contact Information]
Also read our editorial article on Minimum pension –
Big Update: EPS-95 Minimum Pension Changed to ₹9,000 – Fact or Just Demand? – StoxN Tax
Stox N Tax 
Leave a comment