How Should I Respond to EPFO About a Sudden Drop in Employee Contributions?

Dear Employer,

It has been noticed that there is a sudden fall in contribution in your establishment RJRAJ00xxxxx000, XXXXX XXXXX INDIA LTD. It is requested to file the correct ECR for all employees or submit clarification for the same within 30 days. -EPFO

Hi, PF Authorities are asking for clarification on the significant difference between past and current contributions. You need to provide a valid reason for this, whether it is due to many employees leaving at the same time or any pay reduction that was implemented. You should be aware of the reason for the difference in contribution amounts, which you need to explain in writing to the PF Authorities.

If there has been no significant drop in contributions, you can simply ignore the message because similar messages are being automatically generated by the technical team as part of their system upgrade. Therefore, if your contribution amount is almost the same as what you have been paying in the past, you can choose to disregard the message or seek advice from the EPFO representatives by involving your HR personnel.