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EPFO Transfer Rejected with Wage Error - How Can I Fix?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 17, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Pratik Question by Pratik on Oct 30, 2024Hindi
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Money

Hello sir, I've successfully transferred pf frm Company A to B & now have raised request in Epfo frm C to B where C has approved and transferred to EPF but EPF has rejected with 15k wage error - I've raised grievances in Epfo nd in company C. What is the reason behind this remarks ? Is it something of mixing EPF nd EPS by company C?is submission of form 3A by company C to epfo resolve this issue ?if yes then how should I submit form frm Company C to epfo site?

Ans: Hello;

Your assessment seems correct, i.e. mixing of EPF and EPS contribution.

You may furnish it to EPFO through your current employer with an application for transfer request with revised and updated form 3 A enclosed.

This should resolve your issue.

Best wishes;
Asked on - Nov 18, 2024 | Answered on Nov 18, 2024
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What is form 3A for? Please note B is my current employer & A was previous & C was previous to A. So form should be taken from C or B?
Ans: The employer whose EPF is not getting transferred should provide you form 3A and current employer may submit it to EPFO. Hope this is clear.

Form 3A provides a summary of the amounts deducted and contributed to the EPF, VPF, and EPS accounts by both the employee and the employer in a given financial year.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |10744 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2025

Asked by Anonymous - Apr 05, 2025
Money
Hi, I have a query regarding EPF balance transfer. I used to work with Firm A & Firm B and currently working in Firm C. I initiated a EPF balance transfer from Firm A to Firm C and from Firm B to Firm C. Firm A to Firm C was successful. Firm B to Firm C was rejected with below 2 reasons. 1)Pension contribution on higher wages. 2) Claim already settled. Please advise what are those reasons for rejection as I'm unable to understand them. Also note I have only 1 UAN number. Thanks.
Ans: You have taken the right step by initiating EPF transfers. Keeping one UAN and consolidating all your EPF balances helps with better tracking and planning. However, it is important to clearly understand why your EPF transfer from Firm B to Firm C got rejected.

Let’s understand both the reasons given for the rejection in a very simple and clear manner.

What does “Pension Contribution on Higher Wages” mean?
In EPF, the pension part (EPS) has a salary ceiling.

The ceiling is Rs. 15,000 per month for pension calculation.

That means, pension is calculated on Rs. 15,000 even if your salary was more.

But some companies contribute on actual salary, which is above Rs. 15,000.

This is called “higher wages” pension contribution.

Firm B likely contributed EPS on your full salary (not limited to Rs. 15,000).

This is not standard as per EPFO’s default system.

So, EPFO sometimes rejects transfer of EPS part if higher wages were used.

This rule is strictly followed after 2014.

Many employers still use old rules or make manual changes.

That is likely why EPFO flagged and rejected your EPS transfer.

But your EPF (Provident Fund) part is safe. This issue is only with the pension part.

You should check with Firm B’s HR or EPF consultant.

Ask them if they contributed EPS on full salary or just on Rs. 15,000.

You can also get a wage-wise contribution statement from EPFO portal.

This statement will show how much went into EPS each month.

If EPS was wrongly calculated on higher salary, transfer may not happen.

You may need to write to your PF office for a manual correction.

In some cases, only EPF part gets transferred, not EPS.

EPS part stays with the earlier employer as “non-transferable.”

What does “Claim Already Settled” mean?
This reason generally means EPFO has already processed something for Firm B.

It could mean you withdrew the EPF or EPS money from Firm B earlier.

Or you made a claim for Firm B’s EPF before this transfer request.

It could also mean the transfer was already done earlier, maybe from B to A.

If the record shows it as settled, EPFO rejects repeat requests.

You should carefully check your passbook in EPFO portal.

Login with your UAN and check if Firm B’s balance is zero.

If you already got the money before, it’s treated as settled.

If the transfer was already completed earlier, no new transfer is needed.

Sometimes due to technical delay, even successful claims show as rejected.

That’s why you must check your EPFO statement for every employer.

Look under “View –> Service History” and “Passbook” in your EPF portal.

Why this matters for your financial planning?
If EPS is stuck, it impacts your pension eligibility after retirement.

But this doesn’t affect your EPF (Provident Fund) balance.

EPF part earns interest and grows your retirement corpus.

EPS is used to calculate monthly pension under EPS-95 scheme.

For people with higher salaries, the pension amount is already low.

So, EPS may not give you much benefit if you cross Rs. 15,000 salary.

Still, transferring it helps you meet pension service years criteria.

That’s why correcting this issue is important, even if amount is small.

Steps You Should Take Now
Step 1: Log in to EPFO portal with your UAN.

Step 2: Go to “Service History” and check all your previous jobs.

Step 3: Check passbook for Firm B. See if amount is zero or already transferred.

Step 4: Ask HR of Firm B whether they deposited EPS on actual salary.

Step 5: Ask if any withdrawal was done in the past from Firm B EPF.

Step 6: If needed, raise grievance on EPFO portal (https://epfigms.gov.in).

Step 7: Submit a letter to EPFO office for manual EPS transfer approval.

Step 8: Keep screenshots of all rejection messages and passbook entries.

Common Mistakes in EPF Transfer Process
Using different UANs: You did not make this mistake. So that’s good.

Applying partial transfers: One must always apply from oldest to newest employer.

Missing EPS service records: EPS part often remains unlinked or unrecorded.

Multiple claims for same job: EPFO auto rejects duplicate requests.

How This Affects Retirement Plan?
You are consolidating your EPF balance, which is a strong financial move.

EPF gives tax-free interest and acts as a stable retirement base.

EPS gives fixed pension post 58 years if you complete 10 service years.

If service is broken, pension eligibility may be lost.

That’s why it is important to fix pension service records.

Even if EPS amount is low, it helps in eligibility.

At retirement, EPF + Mutual Funds + PPF + NPS gives strong retirement base.

Do not ignore small issues like EPS transfer.

Should You Worry Too Much?
Not at all. Your EPF money is still growing.

EPS is only a small benefit if your salary was always above Rs. 15,000.

But correcting service record is important.

So take this up with EPFO and Firm B HR.

Once resolved, you can reapply for EPS transfer.

Tips to Maintain EPF in Future
Always link new job to same UAN.

Transfer EPF within 6 months of job change.

Check EPF passbook once every 6 months.

Keep KYC (Aadhaar, PAN, Bank) updated in EPFO.

Download service history and passbook regularly.

Final Insights
You took the right action by initiating the transfer.

One transfer succeeded, which is good progress.

The rejection is because of special rules in EPS and possible past claim.

Check your passbook and service history.

Talk to Firm B HR and raise a grievance to EPFO.

Keep your EPF account consolidated for better long-term tracking.

Your retirement plan will be strong with EPF as a stable foundation.

For growth, continue investing monthly in mutual funds through a CFP.

Avoid direct mutual funds. They lack the ongoing guidance of an expert.

Direct plans can miss out on scheme suitability, reviews, and changes.

Regular mutual funds via a certified planner help in asset allocation.

They ensure your investments are matched to your risk and goals.

For a stress-free retirement, all small record errors must be corrected early.

Keep all your employer data clean and updated on EPF portal.

Maintain a record of your total EPF, EPS, and service history always.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Reetika

Reetika Sharma  |244 Answers  |Ask -

Financial Planner, MF and Insurance Expert - Answered on Oct 08, 2025

Asked by Anonymous - Sep 23, 2025Hindi
Money
My monthly income is 1.4 lakh post taxes and expenses around 30k I have MF invested at around 3.5 lacs (started investing last year). I don’t have a personal flat, house or plot but my Dad has a home loan of around 20 lacs pending which I plan to close with my savings of 1 lac per month, in around 2 years. Only after that will I start investing into my own future. I do occasionally invest around 10-15 k in mutual funds from my 30k expense. Am I thinking and planning in the right direction or is there a better route for me to follow that can help me clear my Dads loan as a gift to him and get a corpus of around 1cr at a near future.
Ans: Hi,

Amazing that you are thinking of clearing your dad's loan as a gift. But paying everything you have each month is not a wise choice.

Another best possible alternative for you would be:
- Pay 50,000 per month towards your dad's debt. Closing it will take 2 more years, but that's okay. As saving for future for yourself and family is equally important.
- Invest remaining 50,000 per month in equity mutual funds. In 5 years, you will have 42 lakhs with this investment. And when you cleear the loan, redirect entire 1 lakhs to these funds. You will get 1 crore in another 2 years.
- If you increase the investment by 10% each year, you can reach 1 crore earlier.
- There is no point in prepaying loan by 1 lakh each month. Take time and prepay it slowly.

In the end, make sure to have your emergency fund in place. Also have ample health and term insurance for yourself and family.

If you want to know the best funds to invest in, take an advisor's help. Hence do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

...Read more

Reetika

Reetika Sharma  |244 Answers  |Ask -

Financial Planner, MF and Insurance Expert - Answered on Oct 08, 2025

Asked by Anonymous - Sep 26, 2025Hindi
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Dear financial guru. I am 46 now have a small buisness which I started with 2lac loan soon after my graduation , have 2 sons age 17 and 13 my wife is 40 year she is housewife. From the first day i started savings 1. Now have a corpus of 1cr in FD in bank with monthly intrest withdrawl of 60000 per month on 7% approx This is my retirement corpus 2. Have 1 flat of around 75 lac value which i have given on rent fetching me 20000 per month rent monthly. 3 . Have a investment in 2 plots with current value of around 4 cr and 80 lac 5 living in my ancestral home so I assume it with zero value of selling. 4. PPF ac having saving of around 25 lac matured I have extended it to another 5 years 5. Lic policy of around total 30 lac maturing in around 5 years. 6. Soviener gold bond of todays value for around 12 lac 6. Buisness income around 60000-90000 per month now as now my buissnesd is down due to recession. 7. No loans to repay . No monthly emi to pay. 8. I have taken family health insurance of 25 lac which I will increase to 50 lac in wen I am 50 years. So my current income is Fd intrest 60000 Rent 20000 Buisness income 60000-90000 Total 140000 -180000 Current monthly expenses including school fees 110000 Monthly saving after expense 50000 approx Now my aim 1. Need for my sons education , as my eldor son is 17years good in studies from next year I will be needing around1 lac to 1.50 lac monthly for 4 years as he will be doing btech from good collage maybe in india or abroad. 2 . Plans are approx same for younger son cuurently in 7th will be needing same amount after 4 years for further 5 years for his studies. So need 1-2 lac monthly from next year for around 8-10 years for studies of my both son. After that I will retire and need approx same amount for my entire life. Don’t like invest in share and mutual funds always want safe investment like fd. Pls guide me , I am thinking of selling one plot of 80 lac to manage funds for both sons education exp which I need for 8 -10 years. Second plot I plan to sell wen it’s value come to around 5-6 cr in another 3-4 years from now and will buy another commercial property which will fetching me rental of around 2.5 lac monthly if I rent it to a bank .or will put entire amount in fd with monthly pay out of around 7-8%. Pls guide me if am on right track because have limited knowledge .
Ans: Hi,

You have done so good by building huge assets with your business that you started. It is a genuine worry around kid's education as its cost is rising a lot.
Taking your queries one by one.

1. Your foremost worry of not investing in stocks and mutual funds is very genuine. These come out to be risky. But for people who do not want to take any risk, there are funds as good as FD such as Balanced Funds or Hybrid Funds. As even a FD has risk - if a bank fails, your entire money would be gone in a blink of an eye and you will get only 5 lakhs by government.
So investing in mutual funds is a better option as these funds invest in a pool of stocks. Even if 1 stock fail, your 99% of the money is safe. So you can consider investing in these. Can consult an advisor for the same or reach out to me.

2. Selling one plot for kid's education - good decision. It will cover all cost for both kids and remaining amount (if any) will be for your future.

3. You can shift 70% of FD amount in hybrid mutual funds & start SWP. It comes with comparative tax benefits and better return.

4. PPF is good for you to hold for another 5 years. Continue it.

5. Choosing hybrid funds over FD will gurantee more return and security than any bank's FD.

Rest all is good. You can connect with a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

...Read more

Reetika

Reetika Sharma  |244 Answers  |Ask -

Financial Planner, MF and Insurance Expert - Answered on Oct 08, 2025

Money
Hi sir My age was 35years old, my husband government employee, he was 39 years old, iam freshly start investing in mutual funds Paragh flexi cap fund 6000 monthly sip Nippon india small cap fund 7200 Quant small cap fund 2000 Motilal oswal mid cap 5700 Edlewiss mid cap fund 1000 Motilal oswal nifty microcap 250 index fund 5700 Icici Prudential health care fund 1000 Sbi technology opportunities fund 1000 Sbi infrastructure fund 1000 Sbi energy opportunities fund 1000 Edlewiss us technology fund 1000 Total monthly sip 32600 of monthly rental income This portfolio for long term 20 years, how much returns expected,iam interested to aggressive behaviour.. kindly suggest how much returns expected and first 50 lakh when reaches??
Ans: Hi,

Good to know that you are serious about investing. And you are investing a very good amount for long term.
I understand your risk appetite and time horizon, but the funds you mentioned are not aligned with them.
These funds have overlapping stocks and will not fetch much for you in long run.

As your monthly SIP amount is big, it is better to talk to an advisor to invest. I will not recommend you to continue your SIPs in these funds.

If done your investments correctly, you can reach your first 50 lakhs in 7.5 years. But with current portfolio, it will take 8.5 to 9 years.

A self made portfolio is good, but when the amount is big, it is always better to consult a professional.

Hence, a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

...Read more

Ramalingam

Ramalingam Kalirajan  |10744 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 08, 2025

Money
Is, it a good idea to buy 18k, 22k or 24k 1g and more gold coin via online rather offline. Digital gold give profits or not and what about starting investing in stock market as a beginner and what things to keep in mind?
Ans: You are thinking wisely about gold and stock investing together. This balanced approach shows financial awareness.

» Buying Physical Gold Coins

Buying online or offline both work. But check purity, hallmark, and making charges.
– 24k gold is purest for investment.
– 22k and 18k are better for jewellery, not investment.
Online platforms may add delivery or premium charges. Always buy from trusted and verified sellers.

» About Digital Gold

Digital gold is easy to buy and sell, but not SEBI regulated. So, it carries counterparty risk. If the company closes, recovery may be hard. Hence, it’s not safe for long-term holding.

» Gold Mutual Funds

Instead of physical or digital gold, gold mutual funds are safer.
– They are regulated by SEBI.
– They track gold prices closely.
– No need to store or insure gold.
– You can start with small SIP amounts.
They give better liquidity and transparency than coins or digital gold.

» Starting in Stock Market

As a beginner, start small and learn slowly. Don’t rush or follow tips blindly.
Invest through mutual funds managed by expert fund managers.
Actively managed mutual funds perform better than index funds in India because fund managers adapt to market conditions.
Focus on long-term wealth, not short-term trading.

» Key Things to Remember

– Always invest through your goal plan.
– Keep 6 months emergency fund.
– Avoid loans for investing.
– Stay disciplined with SIPs.
– Review your portfolio yearly with a Certified Financial Planner.

» Finally

Gold mutual funds can diversify your portfolio better than physical gold.
Start your stock journey step-by-step with guidance and patience.
Both can grow wealth steadily when planned right.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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