In December 2025, the national retirement fund body issued a detailed circular on how to fix past mistakes in pension contributions under the Employees Pension Scheme. The rules deal with two recurring problems that have haunted HR and payroll teams for years: cases where employers wrongly sent pension contributions for workers who were never eligible for the pension scheme, and cases where eligible workers did not get any pension contribution at all. The circular finally outlines how to reclassify past contributions, how interest will be recalculated, and which authority will handle approvals for corrections in both exempted and non exempted establishments.
For employees, stories around these errors often show up only when they are leaving a job or applying for pension and discover that their years of work do not translate cleanly into service records. Many workers feel anxious, angry, or helpless when they see mismatched pension entries or missing years, especially older employees who are counting on this income for security. HR teams on the other side feel squeezed between legacy data problems, old payroll systems, and the emotional urgency of workers who fear losing benefits. The new correction framework gives them a formal path, but it also forces everyone to confront how casually pension data was sometimes handled in the past.
From a compliance point of view, these rules move EPS data quality from a back office headache to a governance priority. Employers must now map which employees were eligible, which were not, and reconcile pension ledgers against salary history and contribution files. HR, payroll, and finance teams will need to work together to build audit trails, document corrections, and respond within the timelines set out in the circular. Leaders should treat this as a chance to clean up systems, digitise historical records, and standardise how eligibility decisions are made and recorded for new hires. Clean EPS data is not only about employee goodwill, it is also a shield against future disputes and litigation.
How can organisations systematically audit pension data so errors are caught before employees do?
What should HR communicate to staff who are worried about past EPS mistakes and waiting for corrections?
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7For employees, stories around these errors often show up only when they are leaving a job or applying for pension and discover that their years of work do not translate cleanly into service records. Many workers feel anxious, angry, or helpless when they see mismatched pension entries or missing years, especially older employees who are counting on this income for security. HR teams on the other side feel squeezed between legacy data problems, old payroll systems, and the emotional urgency of workers who fear losing benefits. The new correction framework gives them a formal path, but it also forces everyone to confront how casually pension data was sometimes handled in the past.
From a compliance point of view, these rules move EPS data quality from a back office headache to a governance priority. Employers must now map which employees were eligible, which were not, and reconcile pension ledgers against salary history and contribution files. HR, payroll, and finance teams will need to work together to build audit trails, document corrections, and respond within the timelines set out in the circular. Leaders should treat this as a chance to clean up systems, digitise historical records, and standardise how eligibility decisions are made and recorded for new hires. Clean EPS data is not only about employee goodwill, it is also a shield against future disputes and litigation.
How can organisations systematically audit pension data so errors are caught before employees do?
What should HR communicate to staff who are worried about past EPS mistakes and waiting for corrections?
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The first step in systematically auditing pension data is to establish a dedicated team comprising members from HR, payroll, and finance. This team should be tasked with reviewing all pension contributions, identifying discrepancies, and taking corrective actions. They should use a systematic approach, starting with the oldest records and moving towards the most recent ones.
The team should also create an audit trail for each correction made. This includes documenting the original error, the corrective action taken, and the final outcome. This will not only ensure transparency but also serve as a reference for future audits.
From a legal perspective, the team should be well-versed with the Employees Pension Scheme and the circular issued by the national retirement fund body. They should ensure all corrections are in compliance with these regulations.
To communicate with staff who are worried about past EPS mistakes, HR should adopt a transparent and empathetic approach. They should inform employees about the steps being taken to rectify past errors and provide regular updates on the progress. HR should also set up a helpline or a dedicated point of contact where employees can raise their concerns or queries.
Finally, to avoid such issues in the future, organizations should invest in modern payroll systems that can accurately calculate and track pension contributions. They should also provide regular training to their HR and payroll teams on the latest regulations and best practices related to pension contributions. This will not only ensure compliance but also build employee trust and confidence in the organization's pension management practices.
From India, Gurugram
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The team should also create an audit trail for each correction made. This includes documenting the original error, the corrective action taken, and the final outcome. This will not only ensure transparency but also serve as a reference for future audits.
From a legal perspective, the team should be well-versed with the Employees Pension Scheme and the circular issued by the national retirement fund body. They should ensure all corrections are in compliance with these regulations.
To communicate with staff who are worried about past EPS mistakes, HR should adopt a transparent and empathetic approach. They should inform employees about the steps being taken to rectify past errors and provide regular updates on the progress. HR should also set up a helpline or a dedicated point of contact where employees can raise their concerns or queries.
Finally, to avoid such issues in the future, organizations should invest in modern payroll systems that can accurately calculate and track pension contributions. They should also provide regular training to their HR and payroll teams on the latest regulations and best practices related to pension contributions. This will not only ensure compliance but also build employee trust and confidence in the organization's pension management practices.
From India, Gurugram
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