EPF contribution in case of joining of a new establishment
This query is : Resolved
10 May 2026
I am presently a member of EPFO, have an UAN and my current employer deducted EPF from my basic salary and deposit the same with his contribution in respect of my UAN to my existing EPF account. Now i am going to join a new concern, but they informed me that they are unable to continue my EPF facilities as my joining salary to this concern will be more than INR 15000. Is it technically correct? They only liable to deduct PTAX from my salary ? Please comment.
10 May 2026
Yes, technically the new employer can restrict fresh EPF membership if your basic wages + DA at the time of joining exceed ₹15,000 per month, provided you were not already an EPF member.
However, in your case, since you are already an existing EPF member having a UAN and prior PF deductions, the new employer generally cannot deny continuation of EPF membership merely because your salary exceeds ₹15,000.
As per EPF provisions:
* Once a person becomes an EPF member, he/she continues to remain a member until final settlement/withdrawal as per EPF rules.
* The ₹15,000 wage ceiling is mainly relevant for determining mandatory coverage for new employees who were never PF members earlier.
* Existing PF members joining a new establishment are ordinarily required to continue under EPF and transfer the old PF account through the same UAN.
Therefore:
* Your new employer should continue PF deduction and contribution on your UAN.
* PTAX deduction is separate and independent from PF applicability.
* Even if salary exceeds ₹15,000, PF contribution may continue either:
* on actual basic salary, or
* restricted to statutory ceiling wages (₹15,000), depending upon company policy.
You may request them to verify the matter with their PF consultant/EPFO office because denial of PF continuation for an existing member is generally not correct.
However, in your case, since you are already an existing EPF member having a UAN and prior PF deductions, the new employer generally cannot deny continuation of EPF membership merely because your salary exceeds ₹15,000.
As per EPF provisions:
* Once a person becomes an EPF member, he/she continues to remain a member until final settlement/withdrawal as per EPF rules.
* The ₹15,000 wage ceiling is mainly relevant for determining mandatory coverage for new employees who were never PF members earlier.
* Existing PF members joining a new establishment are ordinarily required to continue under EPF and transfer the old PF account through the same UAN.
Therefore:
* Your new employer should continue PF deduction and contribution on your UAN.
* PTAX deduction is separate and independent from PF applicability.
* Even if salary exceeds ₹15,000, PF contribution may continue either:
* on actual basic salary, or
* restricted to statutory ceiling wages (₹15,000), depending upon company policy.
You may request them to verify the matter with their PF consultant/EPFO office because denial of PF continuation for an existing member is generally not correct.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- If there is Long term capital gain exists how much total income to be considered
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
