Understanding PF & EPS Mismatch Error in EPFO Revamped ECR 3.0
The Employees' Provident Fund Organisation (EPFO) introduced the Revamped Electronic Challan cum Return (ECR) 3.0 in September 2025 to streamline monthly PF compliance, reduce errors, and ensure faster processing of employee benefits. This update includes proactive validations for data accuracy, segregated filing (returns before payments), and easier corrections via Supplementary and Revised Returns. However, during ECR uploads, employers often encounter the "PF & EPS Mismatch" error, which flags inconsistencies between Provident Fund (PF) and Employees' Pension Scheme (EPS) contributions.
What is PF & EPS Mismatch?
- PF Contributions: Employer (12% of basic wages + DA) + Employee (12% of basic wages + DA). Full amount goes to the employee's PF account.
- EPS Contributions: From the employer's 12% share, 8.33% is diverted to EPS (capped at ₹15,000 monthly wages). The remaining 3.67% stays in PF, plus 0.5% admin charges and 0.5% EDLI.
- The Mismatch Error: This occurs when:
- EPS is deducted/remitted for ineligible employees (e.g., wages > ₹15,000 or age >58 at joining).
- Contribution amounts don't align (e.g., EPS exceeds 8.33% of capped wages, or PF is underreported due to diversion).
- Data discrepancies like wrong UAN, missing join/exit dates, or service gaps.
- Legacy issues from pre-ECR 3.0 filings carrying over.
In ECR 3.0, validations run pre-upload, highlighting line numbers in the error log (e.g., "EPS remitted: Max equal to rounded 8.33% of EPS wages + 1.16% above ₹15,000 "). This prevents rejections but requires immediate fixes to avoid penalties, delayed passbook credits, or claim blocks (e.g., PF transfers/withdrawals rejected due to "EPS not diverted").
Common triggers include:
- High-wage employees wrongly enrolled in EPS.
- Arrears filings with outdated data.
- UAN mismatches from job changes.
If unaddressed, it can lead to interest/damages on dues or claim rejections like "Member wages ₹15,000 and EPS not diverted – furnish ECR revision."
Step-by-Step Solution to Resolve PF & EPS Mismatch in ECR 3.0
Follow these steps as an employer (or coordinate with HR/payroll). Employees should contact their employer first, as only they can file corrections. Use the EPFO Employer Portal (unifiedportal-mem.epfindia.gov.in) for all actions.
| Step | Action | Details & Tips |
|---|---|---|
| 1. Download & Review Error Log | Log in to EPFO Employer Portal > ECR/Returns > View Validation Errors. Download the error file (TXT/PDF). | Identifies affected lines (e.g., employee UANs). Check for specifics like "EPS contribution >8.33% cap" or "Wages mismatch." Cross-verify with payroll sheets. |
| 2. Verify Employee Eligibility | For each flagged employee, confirm EPS eligibility: Wages ≤₹15,000, age <58 at joining, no prior high-wage service blocking EPS. | Use UAN portal (unifiedportal-mem.epfindia.gov.in) > View > Service History. If ineligible, set EPS contribution to ₹0 and adjust PF accordingly. Download Form 11 (new joiners' declaration) for proof. |
| 3. Correct Data in Payroll/ECR File | Open your ECR TXT file (generated via Excel template from portal). Edit fields: Update wages, set EPS=0 for ineligibles, ensure PF = Total 24% - EPS diversion. | ECR 3.0 template enforces formats—e.g., EPS wages capped at 15,000. Recalculate: EPS = ROUND(8.33% × MIN(Wages, 15,000)). Save as pipe-delimited TXT (no headers). |
| 4. File Supplementary or Revised Return | - Supplementary: For adding missed employees (e.g., new hires). Select "Supplementary ECR" > Upload corrected file > Validate. - Revised: For fixing Regular/Supplementary errors (e.g., mismatch). Select "Revised Return" > Choose original wage month > Upload new file. | Payments generate separately—pay via NEFT/Internet Banking post-validation. Revised Returns overwrite prior data; limit to genuine errors to avoid audits. Deadline: Within 15 days of original filing. |
| 5. Remit Corrections & Generate Challan | After validation passes, generate TRRN (Temporary Reference Number) > Pay dues (including any arrears/interest). Download receipt. | Use single Demand Draft for multiple pending dues if errors span months (EPFO relief measure). Track via "Payment > View Remittance." |
| 6. Update UAN & KYC (If Needed) | Employer: Joint Declaration in portal > Member e-Sewa > Update Aadhaar/PAN/bank. For EPS ineligibility, submit Form 3A (annual contrib summary) via employer. | Employees: Activate UAN > Link Aadhaar. Merge multiple UANs if job-change caused split records. |
| 7. Submit Supporting Documents (If Rejection Persists) | If portal blocks persist, email RPFC (Regional PF Commissioner) with: Revised ECR file, Form 3A/10C, payroll proofs, and cover letter explaining mismatch (e.g., "Erroneous EPS for high-wage employee"). | Visit local EPFO office for physical submission. Grievance via EPFiGMS (epfigms.gov.in) if >15 days delay. Helpline: 1800-118-005. |
| 8. Verify & Track | Post-upload: Check Passbook (UAN portal) for credits. Monitor ECR status > "View Filed Returns." | Re-run claims/transfers after 7-10 days. If PF claim rejected, reapply with "ECR Revision Furnished" note. |
Prevention Tips for Future ECR 3.0 Uploads
- Pre-Validate: Use ECR 3.0's built-in checker before final upload—catches 90% of mismatches.
- Training: Train payroll on EPS caps; automate via HRMS software integrated with EPFO API.
- Timelines: File by 15th of next month (e.g., Sept wages by Oct 15). Use Supplementary for mid-month joins.
- Resources: Download ECR 3.0 User Manual from EPFO site. Refer to Circular dated 26.09.2025 for Revised Returns guidelines.
This process typically resolves issues in 7-15 days. For complex cases (e.g., multi-employer history), consult a PF consultant. If you're an employee facing claim blocks, share your UAN with your ex-employer for coordinated fixes—EPFO prioritizes joint resolutions.
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