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.
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