EPFO Challenges Impacting Tech Sector: Nasscom Raises Industry Concerns

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EPFO Challenges Impacting Tech Sector: Nasscom Raises Industry Concerns

Swapnil

@swapnilyadavsy

August 1, 2025

Public Policy

On July 25, 2025, Nasscom submitted a detailed representation to EPFO highlighting critical issues affecting employee mobility, social security access, and compliance ease for the sector.

Key issues raised include:

PF Transfers from Exempted Establishments

Despite the presence of complete member profiles and verified KYC, the auto-transfer facility for PF remains unavailable for exempted establishments (e.g., private PF trusts).

Manual Form 13 processes are error-prone and delay transfers.
Restricted portal access post-July 2024 prevents employers from verifying claim details, slowing fund movement.
Technical glitches in downloading Annexure K—such as frequent session timeouts, PDF errors, or incomplete data—further complicate reconciliation.

Discrepancies in EPS Membership Status

Employees earning above ₹15,000 are facing delays in pension fund handling due to mismatches in EPS status.

Errors often stem from inconsistent declarations in Form 11 (at joining) and Form 9 (pension status).
Some members are incorrectly tagged as EPS or non-EPS, even after withdrawing earlier service or joining with eligible salaries.
These discrepancies block PF/EPS transfers or withdrawals until rectified.

Rejection of Higher Pension Applications from Exempted Establishments

Despite fulfilling eligibility under the Supreme Court’s 2022 ruling, several applications for Pension on Higher Wages (POHW) have been rejected.

EPFO has cited trust rules that mirror its own model rules, raising questions of consistency.
Many exempted employers have already made full-wage contributions, yet claims are being denied.
The situation risks discrimination between exempted and unexempted establishments and may invite further litigation.

Nasscom has also suggested a set of practical solutions—including restoring key digital functionalities, improving correction tools, and ensuring consistent application of judicial guidelines—to address these systemic issues. We remain engaged with EPFO to resolve these concerns in a timely and collaborative manner.

EPFO

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Swapnil