banner_ad

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.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro

Similar Resolved Queries


loading


Unanswered Queries



CCI Pro
Meet our CAclubindia PRO Members

Follow us
add to google news



Answer Query



Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
ARTICLESHIP 05 May 2026
ARTICLED ASSISTANT

JS ADVISORS

New Delhi

CA Inter

View Details
Company
01 May 2026
Chartered Accountant

Agrawal Jain & Co.

Raipur

CA

View Details
Company
03 May 2026
Senior Chartered Accountant

Nirmal Jain & Co

New Delhi

CA

View Details