Why Most Employers Don't Deduct Pf During Probation Period - CiteHR
Jeevarathnam
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Dear Seniors,
I am about to join an organization. In my 10 years working duration this is my 4th organization, where in same thing is happening that employer will start PF contribution & deduction after probation period.
I believe many of us would have face same problem.
I could never understand what is employers thought behind this policy as PF should start from the very first day of joining.
I am not trying to clarify with would be employer the since it is big opportunity for me , but want to understand why has this been practiced in most of the organizations even after Govt. rule.
Can any HR senior explain me on this from employer point of view.
regards

Probation period is not termed as employment fully, within this period the employer and employee both has to come to a point to continue or not, i.e the employee is capable to perform his duties as per requirement of establishment and is satisfied with the management, on his positive performance attitude the probation or trainee employee is converted to "employee" and after that the statuary deductions starts,
in probation period mostly stipend is paid in place of salary

PF is applicable to Probationer as per EPF Act. Stipend is payable only to Apprentices or Trainees and Probationers will be paid consolidated salary or even with Basic, DA and Allowances like HRA etc.,
N Nataraajhan, Sakthi Infogy Solutions Pvt Ltd (natraj@sakthimanagement.com)

Mr NATRAJ is correct PROBATION is a period of six months or 12 months to assess if the employee is able to cope up with the Organization That is all.It has nothing to do with P F or E S I Even casual is to be covered
Every employee of the organisation except Apprentice who are covered under Apprentice act & consultants are exempted from the benefits such as ESI & EPF. There is no any rule as probation are exempted. As per the employment act HE/She is eligible for all the benefits right form the day 1 of joining irrespective of probation employee or confirmed employee
The reason for not deducting & remitting EPF/ESI may be
1) Due to lack of awareness/knowledge of the HR/Management or any responsible people
2) Management/HR may think as the employee may leave in couple of months so why unnecessarily need to contribute
3) Many HR professional/respective people still think as its additional burden/work load to deduct & remit to the respective department
4) There are many management people as its additional cost to the organisation

As per EPF ACT. only Apprentice exempted from epf & esic deduction, employer is liable to deduct and pay pf from contractual, probationer and permanent employees the act is applicable from the day one when employee join organization.
only exemption is for those who are out of ceiling means baisc + da is more than 15000rs.
And now from January the Esic ceiling will be 21000rs but esic is applicable in gross salary.
for more details contact me for EPF and Esic consultation.9752620200
for social help to spread awareness.

Except Apprentice all the employees are eligible for EPF even casual employees also.
U S Sharma,
You are misguided about PF act and also applicability of laws to probationers. What you have said that during probation period no statutory deduction viz. PF, ESI, PT, LWF should start. Please remember that many persons visiting the citehr are trying to learn about labour laws and you are providing wrong information to them.

@shrikant Pra
Read my reply once again, if wages or salary is paid then ESI /PF question arise, not on stipend, ............and yes check your payslip very carefully, if the word "salary" or "wages" appear in payment , then obviously it would be covered under ESIC / EPF, even for a single day paid salary or wages is subject to ESIC/EPF contribution.
but
if its marked "remuneration, or stipend" is marked in place of salary, then it does not get applicable,

If person joins as salary or wage base employee other than Act Apprentice then he will come under PF act.

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