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venkat2ndAug
Hi Seniors,
Is it mandatory to extend the benefit of PF and ESI for all the employees right from day 1 of their joining the organisation. Our Management wants to know whether they can be given benefit of PF & ESI after their probation.
Is any rule that they have to be enrolled under these benefits. If yes, kindly forward.
Thanks,
Dev

From India, Hyderabad
Prashant B Ingawale
467

If your organization is covered under the definition of establishment under ESI & PF act then all the employees are covered under ESI & PF from Day one of their joining.
From India, Pune
venkat2ndAug
I checked the PF ACT but its not there that we have to cover them from the very first day of their joining. Can you please forward any notification with this regard so that I can show the same to our management.
From India, Hyderabad
varghesemathew
910

Is it in EPF Act that employee need to be covered under EPF & ESI only after probation?.You have to cover them from the day wages are payable to them.
From India, Thiruvananthapuram
venkat2ndAug
thank you Mr. Varghese. But our management was asking me to show me such notification making us mandatory to cover them under both ESI & PF from their day of joining the organisation. The Management argues that its waste of money since the employee will be under probation upto a period of six months and whether he will continue in service till probation is not known.
Hence, they wanted me to show them such notification in which it states that we have to cover employees under probation / immediately after they join the organisation.
Kindly forward me that notification if you have it.
Thanks,
Dev

From India, Hyderabad
varghesemathew
910

You read para 29 of EPF Scheme.It says contribution shall be 10/ 12 % of wages.If you don't pay wages during probation , need not pay contribution. You can terminate an employee or he can resign after confirmation. Then also PF contribution can be a waste of MONEY!
From India, Thiruvananthapuram
Srinath Sai Ram
609

Dear Venkat Please peruse attachment- EPF Scheme, 1952-Chapter-IV Clause 26(2)
If your Establishment is already covered under EPF & ESI, All Employees need to be covered from the date of Joining, by virtue of Applicability of EPF/ESI Act to Establishment.Probationers earning Salary are also Employees to be covered under EPF/ESI

From India, New Delhi
Attached Files (Download Requires Membership)
File Type: docx EPF Coverage from the Date of Joining.docx (37.3 KB, 497 views)

venkat2ndAug
Thank you very much Mr. Srinath for your time in replying to my query!
From India, Hyderabad
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