Confused About EPF Transfers Due to High Wages? Here's How to Tackle It

Hello All,

I have joined three companies — A, B, and C after the year 2018. Company A had EPF membership in trust, Company B had EPFO membership, and Company C has trust membership for their employees upon joining. In my case:

- A: Deduction for both EPF + EPS {initial wages more than 15,000}
- B: Deduction for both EPF + EPS {wages more than 15,000}
- C: Deduction for both EPF + EPS {wages more than 15,000}

I was able to transfer my total PF from A to B. However, I received a rejection from EPFO for transferring my PF from B to C due to "Wages more than 15,000 at the time of joining."

Upon discussing with my previous company, B, they informed me that I was not eligible for EPS when I joined Company A because my wages were initially more than 15,000. I was unaware of this eligibility criterion when Company A enrolled me as an EPS member and started deducting contributions for the same.

What steps should I take in this complicated situation?

How should I address this issue?

Your case is complicated but not uncommon. Here's how you can handle it:

Understanding the Issue
As per EPFO rules, if an employee's basic wages at the time of first joining EPF are above ₹15,000, they are not eligible for EPS (Employee Pension Scheme).
Despite this, Company A erroneously deducted EPS contributions and continued depositing them.
You successfully transferred your PF (including EPS) from A to B because no check was applied.
However, when you tried to transfer from B to C, EPFO rejected it because they found you were ineligible for EPS from the beginning.

Next Steps to Resolve the Issue
1. Verify Your EPS Eligibility from Company A
Check your EPF passbook and service history in the UAN portal to confirm that EPS contributions were made.
If possible, ask Company A for a detailed breakup of PF contributions they deposited.

2. Get EPS Refund or Correction from EPFO
Since you were not eligible for EPS, the EPS contributions made during your tenure in Company A and B were incorrectly deposited.
You can request EPFO to refund the EPS amount (as it was wrongly deducted) and adjust it into your EPF account.
To do this, you need to raise a grievance on the EPFO portal (EPFiGMS) and provide:
Your employment details with Company A & B
Your EPF passbook copies showing EPS deductions
The rejection letter from EPFO
A written request to transfer the wrongly deducted EPS amount into your EPF account

3. Get a Clarification Letter from Company A
Since the mistake originated at Company A, you should request a letter from them stating:
They erroneously enrolled you in EPS despite your wages being above ₹15,000.
They deducted EPS contributions incorrectly.
This letter will help strengthen your case when dealing with EPFO.

4. Reattempt Transfer from B to C Without EPS
Once your EPS issue is resolved, reapply for PF transfer from B to C, but only transfer EPF (Provident Fund) without EPS.
If EPFO still rejects it, visit your local EPFO office in person and explain the situation with all supporting documents.

Expected Outcome
Best Case: EPFO will correct the EPS mistake and adjust the amount into your EPF, allowing a smooth transfer.

Worst Case: The EPS contributions may be forfeited, but your PF transfer will go through.

Since your case involves technical adjustments, it is best to raise a grievance and follow up in person at the EPFO office if required.