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Many of our readers who started working after Sep 2014, have Basic wage above 15,000 and have applied for transfer of their EPF account or claimed their EPF withdrawal have faced rejection from EPFO as shown in the image below. What is the reason for the Rejection? What can be done about it?

EPF Transfer and Withdrawal claim was rejected as basic wages more than 15,000

EPF Transfer and Withdrawal claim was rejected as basic wages more than 15,000

A solution for Salary more than 15,000 and EPF problem which might work?

Our reader, Jobin, has suggested a solution to the problem. His comment, given below, is reproduced here. Appreciate him sharing with all of us. Have raised it on Twitter here, Keeping my fingers crossed.

The  Employee needs to follow up for no fault of his. Yes, it sucks but you need to fight out to get your money.

And For your next job make sure that your entire Employer contribution is going towards EPF. Do spread the message in your social media about the problem. You can also tag us at bemoneyaware.

The solution suggested by EPF is “You are advised to approach the employer for rectifying the same by submitting revised return to the EPFO for merging the EPS contribution to EPF”

Hello all,

I am also facing the issue in PF transfer due to the reason that my basic salary is above 15000 when I started the job. After running from pillar to post for around 2 years, finally, I found a solution for this issue. I would like to post the same here for the benefit of all. Request @Bemoneyaware to update in your article.

The solution is that
Step 1) the previous employer (who remitted EPS) has to sent a request to EPFO to merge both EPS and EPF accounts.
Step 2) The EPFO will be able to process the EPS and EPF merger based on this request
Step 3) Finally the member will have only EPF account. Then one will be able to transfer the EPF account to current employer.

Currently completed Step 1 and awaiting Step 2 to be completed.

You might have to follow up

Take the letter from the employer for rectification & submit it to the EPFO office for merging the accounts.

Continuously raise the grievances on the portal for this rectification. this will put some pressure on the EPFO office.

Still facing the issue, then simply raise the RTI application with detailed questions & ask for the reason for the delay. (RTI application fee is just Rs.10). They have to reply to the RTI within 30 days.

Understanding the EPS Contribution

For new members joining the EPF scheme on or after 1 September 2014, the contribution is required to be made only under the PF and insurance scheme – as such employees are not eligible for membership under the pension scheme.

New EPF members enrolled on or after September 1, 2014, and having a salary of more than INR 15,000 month at the time of joining, will not become members of the EPS. Accordingly, the entire contribution of 24% (from the employee and employer) will go to the provident fund account of the employee. The image from the Document on EPF site is shown below

EPS Contribution EPF document

EPS Contribution EPF document

How the EPF, EPS Contribution is calculated

  • 12% of Employee’s Basic and Dearness allowance goes to EPF.
  • 8.33% of Employer contribution for Salary less than 15,000 and a maximum limit of 1250 goes towards EPS.
  • Remaining 3.67% of Employer contribution goes to EPF.
  • If Employee Basic and DA are more than 15,000 then entire Employer contribution should go to EPF.

The following table shows the EPF, EPS Contribution for employees who joined before and after 1 Sep 2014 and have a Basic salary more than 15,000

Employer Employee Contribution in EPF EPS

Employer-Employee Contribution in EPF EPS

Who is at fault for EPS contribution for Employee with Basic more than 15,000?

Both employer and EPFO.

 But also the employee, because

  • he faces the problem during Transfer or Withdrawal
  • and misses out the interest also as some part of his salary, is diverted to EPS which does not earn interest.

Employer and EPFO both know the joining date of the employee in the company. The Challan which employer submits to EPFO has UAN number, Name of Employee, Basic Wage and EPF calculation as shown in the image below. But it does not have the joining date.

EPF Employer ECR Challan

EPF Employer ECR Challan

Video of Employer generating EPF Challan

The Video below shows how does employer makes ECR Challan, Uploads it in EPF website for Employer.

What can be done once Employee realizes that there is EPS Contribution?

The  Employee needs to follow up for no fault of his. Yes, it sucks but you need to fight out to get your money. For your next job make sure that your entire Employer contribution is going towards EPF

We are looking for the solution, are in talks with many EPF consultants. Some of the solutions by our readers that have met some success are given below. We appreciate the efforts of our readers, Jobin & Yash. If you have found any other workable solution do let us know.

The solution suggested is “You are advised to approach the employer for rectifying the same by submitting revised return to the EPFO for merging the EPS contribution to EPF”

Step 1) the previous employer (who remitted EPS) has to send a request to EPFO to merge both EPS and EPF accounts.
Step 2) The EPFO will be able to process the EPS and EPF merger based on this request
Step 3) Finally the member will have only an EPF account. Then one will be able to transfer the EPF account to the current employer.

You might have to follow

Take the letter from the employer for rectification & submit it to the EPFO office for merging the accounts.

Continuously raise the grievances on the portal for this rectification. this will put some pressure on the EPFO office.

Still facing the issue, then simply raise the RTI application with detailed questions & ask for the reason for the delay. (RTI application fee is just Rs.10). They have to reply the RTI within 30 days.

We have raised this issue with EPFO on social media. We have added it in our Change.org petition. Will keep people updated.

Bemoneyaware complaint on Twitter

Bemoneyaware complaint on Twitter

If you have a suggestion please do let us know.

What you can do,

For your next job make sure that your entire Employer contribution is going towards EPF

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