The Employees’ Provident Fund Organisation (EPFO) has recently issued guidelines addressing the complexities surrounding members of the Employees’ Pension Scheme (EPS) who possess multiple account numbers due to concurrent employment in two or more establishments. The guidelines, released on January 29, 2024, provide detailed insights into how pensions will be worked out in such scenarios.
Key Guidelines for EPS Members with Multiple Accounts:
- Calculation at Exit: The pension from each establishment will be calculated on an actual basis at the date of exit.
- Aggregation of Pensions: Pensions payable from all establishments will be aggregated, ensuring that the total pensionable salaries at any given time do not exceed the wage ceiling. Any excess salary over the wage ceiling will have the corresponding contributions diverted to the Provident Fund (PF) account.
- Minimum Pension Criteria: The minimum pension criteria will be applied to the aggregated pension amount, ensuring a uniform standard for all members.
Additionally, the guidelines specify that if a member becomes a part of EPS without exiting the first establishment, the Responsible Officer (RO) of the subsequent establishment must ensure that the total contribution to EPS does not surpass the contribution payable on a wage ceiling of Rs 15,000.
Effective from September 1, 2014, if wages in a single establishment exceed Rs 15,000 or the aggregate of wages at the time of joining exceeds Rs 15,000 in multiple establishments concurrently, the full 24 percent PF contribution shall be retained in the Provident Fund account. In such cases, the member becomes ineligible for EPS membership under the 1995 scheme.
EPFO emphasizes that these instructions should be communicated to establishments with instances of multiple memberships, urging Responsible Officers to ensure accurate Electronic Challan-cum-Return (ECR) submissions from employers.
In cases of pension calculation and the issuance of the Pension Payment Order (PPO), the RO from the establishment where the member finally exits EPS will be responsible. For overlapping memberships, the RO of the subsequent establishment must comply with the guidelines outlined in the instructions.
