EPS contribution not done, Transfer claim is rejected

Hello experts,

I am an existing member of EPS since 2011.
But by mistake, my previous employer haven’t made any contributions to the EPS and deposited the whole amount into EPF.

Now, when I tried transfer, the transfer claim got rejected saying - “Member is eligible, EPS contribution not received”

Could you please help me resolve this issue?

Thanks in advance!

4 Likes

Hey @atanuroy ,

It’s essential to resolve this discrepancy to ensure that you receive the benefits you are entitled to under the EPS scheme. Here are the steps you can take to address this issue:

1. Contact Your Previous Employer:

The first step is to contact your previous employer and inform them about the issue. Provide them with the details of the missing EPS contributions and request them to correct the error by depositing the outstanding EPS contributions.

2. Submit a Joint Declaration Form:

You can also submit a Joint Declaration Form (Form 11) to the EPFO (Employees’ Provident Fund Organization) along with your previous employer to rectify the discrepancies in your service record and EPS contributions.

3. File a Complaint with EPFO:

If your previous employer fails to rectify the error, you can file a complaint with the EPFO. Here’s how you can do it:

  1. Visit the EPFO website and log in to your account.
  2. Go to the ‘Online Services’ section and select ‘Register Grievance’.
  3. Fill in the required details and submit your complaint along with the necessary supporting documents.

4. Follow-up with EPFO:

After filing the complaint, make sure to follow up with the EPFO regularly to check the status of your complaint and ensure that the issue is being addressed.

5. Seek Legal Assistance:

If the above steps do not resolve the issue, you may need to seek legal assistance to enforce your rights and ensure that your previous employer complies with the EPS contributions.

Important Points to Consider:

  • Document Everything: Make sure to keep all communication and documentation related to this issue, including emails, letters, and receipts, as evidence.
  • Stay Informed: Keep yourself informed about the rules and regulations governing EPS contributions to understand your rights and entitlements.
  • Be Persistent: Resolving such issues may take time and require persistence. Continue to follow up with your previous employer and the EPFO until the issue is resolved.

By following these steps and staying proactive in resolving the issue, you can ensure that your EPS contributions are correctly deposited, and you receive the benefits you are entitled to under the EPS scheme.

Hope you get the benefit from this

Rakesh

3 Likes

Hey Rakesh
If you provide the details how Employer can rectify this problem will be very useful
Like
1 Employer contributed EPS amount to EPF account, how can employer rectify this for Past years.
2 and if Employee didn’t declare that he was eligible for EPS hence full amount deposited to EPF account
Thanks in Advance

2 Likes

Hey @MaheshReddy ,

Certainly, here’s a more detailed explanation of how the employer can rectify the issues related to EPS contributions:

1. Rectifying Incorrect Contribution to EPF Instead of EPS:

If the employer has mistakenly deposited the EPS contribution into the EPF account, they can rectify this by transferring the amount to the correct EPS account. Here’s how the employer can do it:

Steps to Rectify:

  1. Identify the Incorrect Contribution:
  • The employer should first identify the incorrect EPS contributions made to the EPF account. This can be done by reviewing the contribution statements and transaction details.
  1. Calculate the Correct EPS Contribution:
  • Calculate the correct EPS contribution that should have been deposited based on the employee’s wages and service period. The EPS contribution is generally 8.33% of the employee’s basic wages, subject to a maximum of Rs. 1,250 per month.
  1. Transfer the Amount to EPS Account:
  • Deposit the calculated EPS contribution amount into the correct EPS account. This can be done by generating an EPS challan through the EPF portal or by visiting the nearest EPFO office.
  • Ensure to mention the correct EPS account number and other details while making the payment.
  • Obtain a transfer receipt or challan as proof of the correct EPS contribution.
  1. Update the Contribution Details:
  • Update the contribution details in the EPF portal to reflect the correct EPS contributions. This should include the correct EPS contribution amount, transaction date, and other relevant details.

Documentation Required:

  • Transfer receipt or challan showing the correct EPS contribution.
  • Updated contribution details reflecting the correct EPS contributions in the EPF portal.

2. Rectifying Non-Declaration by Employee:

If the employee did not declare their eligibility for EPS and the full amount was deposited into the EPF account, the employer can rectify this by adjusting the contributions as per the EPS eligibility criteria. Here’s how the employer can do it:

Steps to Rectify:

  1. Check Eligibility for EPS:
  • Verify the eligibility criteria for EPS based on the employee’s age and service period. To be eligible for EPS, an employee should be below 58 years of age and have completed at least 10 years of service.
  1. Calculate the Correct EPS Contribution:
  • Calculate the correct EPS contribution that should have been deposited based on the eligibility criteria. If the employee is eligible for EPS, the employer should deposit 8.33% of the employee’s basic wages into the EPS account, subject to a maximum of Rs. 1,250 per month.
  1. Adjust the Contribution Amount:
  • Adjust the EPF contributions to deduct the excess amount deposited and transfer the correct EPS contribution to the EPS account. This can be done by generating an EPS challan through the EPF portal or by visiting the nearest EPFO office.
  • Ensure to mention the correct EPS account number and other details while making the payment.
  • Obtain a transfer receipt or challan as proof of the correct EPS contribution.
  1. Update the Contribution Details:
  • Update the contribution details in the EPF portal to reflect the correct EPS contributions. This should include the correct EPS contribution amount, transaction date, and other relevant details.

Documentation Required:

  • Transfer receipt or challan showing the correct EPS contribution.
  • Updated contribution details reflecting the correct EPS contributions in the EPF portal.
  • Employee’s declaration form confirming eligibility for EPS, if available.

Important Points to Consider:

  • Timely Rectification: It’s essential to rectify the incorrect contributions as soon as possible to avoid any penalties or legal consequences.
  • Communication with Employee: Inform the employee about the rectification process and ensure that they are aware of the correct contributions and benefits they are entitled to under the EPS scheme.
  • Consultation with EPFO: In case of any doubts or uncertainties regarding the rectification process, it’s advisable to consult with the EPFO or seek legal advice to ensure compliance with the rules and regulations.
3 Likes