Is My New Employer Required to Deduct EPF if My Salary Exceeds 15000? Seeking Clarity on Rules

Hi, I have joined a new employer, and my previous employer deducted my EPF. However, my new employer has informed me that since my salary is above 15000, they will not deduct my EPF. I am aware that there is a rule stating that they must deduct my EPF if I am already a member of EPF. Can you please provide some information about this rule? Thank you.

Dear Amanjain,

You have not mentioned your PF amount from your previous membership. Have you withdrawn it? Have you submitted PF Declaration Form #11 giving details about your previous EPF membership?

If you have not withdrawn your PF amount, your present employer is liable to cover you under EPF & EPS and remit contributions based on the present wage ceiling, i.e., Rs15,000/-.

Dear Amanjin,

Please submit PF Declaration Form #11 giving details about your previous EPF membership to your previous employer. Please go through the relevant Act in detail. The information provided herein is sufficient to take up the matter with your employer.

I have already informed them about my EPF details, but they are requesting specific rules and regulations; otherwise, they will not deduct my EPF. I require a copy of a legal document that outlines the new employer's obligation to deduct my EPF. If you have any supporting documents such as a notice from the EPF department or a copy of the rules, please send them to me. I would be greatly obliged.

What action can I take if they do not continue this? Where should I file a complaint? Please guide me in this regard. Thank you.

Dear Amanjain, you have to take up the matter with your employer/EPFO.

The Employees’ Provident Fund Scheme, 1952

26. Classes of Employees Entitled and Required to Join the Fund

(1) (b) Every employee employed in or in connection with the work of a factory or other establishment to which this scheme applies, other than an excluded employee, shall also be entitled and required to become a member of the fund from the day this paragraph comes into force in such factory or other establishment if, on the date of such coming into force, such employee is a subscriber to a provident fund maintained in respect of the factory or other establishment or in respect of any other factory or establishment (to which the Act applies) under the same employer.

Provided that where the scheme applies to a factory or other establishment on the expiry or cancellation of an order of exemption under section 17 of the Act, every employee who but for the exemption would have become and continued as a member of the Fund, shall become a member of the Fund forthwith.