Seeking Guidance on Regularizing Employee's Pension Amount Amid Challenges with Pension Claim Form

Dear Panel Members, we are currently facing challenges with the application of a Pension Claim Form for one of our employees who turned 58 in July 2025. We have been deducting provident fund (PF) wages over and above Rs. 15,000 from his salary. In his case, we have deducted a PF amount of Rs. 1,91,846, which equals to EE's Rs. 23,022 + Employer's Rs. 23,022 = Rs. 46,044. However, no contribution has ever been deposited to the Employee Pension Scheme (EPS) at 8.33% since his joining in October 2021. He was previously a member of EPS and his contribution was deposited until 2016. We are unable to proceed with his pensionable service as the EPS Contribution is not shown. Could you guide us on how to regularize his pension amount?

This situation is indeed complex but not entirely uncommon. Here are the steps you can take to resolve this issue:

1. First, you need to ascertain the total service period of the employee, including the period during which the EPS contribution was made until 2016 and the period from his joining in October 2021 till now.

2. Once you have the total service period, you can calculate the pensionable salary. The pensionable salary is calculated as the average of the last 60 months' salary (subject to the ceiling limit of Rs. 15,000 per month).

3. Since no contribution has been made to the EPS since his joining in October 2021, you will need to make a lump sum payment of the arrears. This will include the employee's contribution of 8.33% of his salary (subject to the ceiling limit) and the employer's equal contribution.

4. After the arrears have been paid, you can proceed with the pension claim. The pension amount will be calculated based on the pensionable salary and the total service period.

5. It's important to note that any arrears payment and subsequent pension claim should be done in accordance with the Employees' Pension Scheme, 1995.

6. If you face any difficulties, you can seek assistance from the regional Provident Fund Commissioner's office. They can guide you through the process and ensure that the employee's pension rights are protected.

Remember, it's crucial to adhere to the rules and regulations of the Employees' Pension Scheme to avoid any legal complications.

Let me take it like:
The employee joined your establishment in Oct 2021.
At the time of his joining his salary was above Rs 15000 but you contributed to his EPF on actuals, both the employer share and employee's share.
You did not collect form 11 from the employee. Had you collected form 11, you would have come to know that he is an employee who is covered by EPS. This is a negligence on your part, you cannot be excused for that.
What happened to the EPS contribution for the period from 2016 till 2021 is not known.
Now if the employee has to get pension, you have to reconcile the contributions made by you by diverting a portion (8.33% subject to a maximum of Rs 1250 per month) to pension fund. before that make sure that he was covered by EPS before 2016 and also understand where did he work during 2016 2021 period and why was EPS not contributed during that period.

Since you have contributed the amount to EPF on actuals, adjusting the amount from EPF to EPS is not an issue but the period prior to that is to be taken up by the employee himself.