KK!HR
Management Consultancy
Gajenderrathore
Manager Accounts

A new employee joined our company ,earlier in previous company his pf was deducted & all pf money withdrawn from pf account as he was jobless for 6 months. Now in our company he don't want pf deduction since his basic salary is more than Rs 15000 per money. Whether to deduct his pf or not?
15th December 2017 From India, Jaipur
As per EPF Scheme the Act does not cover Excluded Employees and clause 2 (f) defines so
“excluded employee” mean—
(i) .......
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds Fifteen thousand rupees per month;
He is presently employed on wages exceeding the wage limit for PF coverage till the time the wage limit is below his salary/wages. Now there is news of PF wage limit getting enhanced to Rs. 21000/- so review the position after the amendment to the PF Act is made thus.
As per para 26A(1) his membership in the PF Fund is not retained as per the following provision:
26A. Retention of membership
(1) A member of the Fund shall continue to be member until he withdraws under paragraph 69 the amount standing to his credit in the Fund
Since he has been unemployed for long (>6months) and has settled his PF account, his membership of the Fund is not retained and since he is presently out of the wage limit set under the Act for coverage, he could be considered to be out of PF coverage.
15th December 2017 From India, Mumbai
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