EPFO Releases Guidelines for EPS Members with Multiple Accounts

The Employee Provident Fund Organisation (EPFO) recently issued guidelines to regulate the entitlement of members under the Employee Pension Scheme (EPS) who have multiple account numbers.

In a circular released this week, the EPFO outlined the regulations for individuals who work simultaneously in two or more establishments and possess multiple account numbers. According to the circular, the pension from each establishment shall be calculated at the date of exit on an actual basis. Subsequently, the pension payable from all establishments will be aggregated.

One of the key directives from the circular is that the aggregate pensionable salaries at any point in time shall not exceed the wage ceiling. In cases where it exceeds the wage ceiling, the excess contribution received shall be diverted to the provident fund account, and the minimum pension provisions will only apply to the total pensionable amount.

Additionally, the circular instructs regional officers of the social security organization to ensure that the total contributions in the scheme by an individual working in multiple establishments under their jurisdiction do not exceed the contributions payable on the wage ceiling of Rs 15,000 per month.

Furthermore, establishments where multiple memberships are prevalent are urged to adhere to the correct Electronic Challan cum Return (ECR)s. This is to streamline the claims process, as having multiple accounts can lead to variations in the contributed amounts, causing difficulties during the calculation of the pension amount.

This move by the EPFO aims to streamline the claims process and ensure that members with multiple accounts receive their entitled pension benefits without discrepancies or delays. The guidelines are part of an ongoing effort to facilitate the smooth functioning of the EPS and minimize complexities for its members.