Question 1: Which employees are excluded under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952?
Answer: An employee whose salary (BASIC+DA) at the time of entry into the EPF Scheme is more than Rs. 15,000. Once an employee becomes a member of the EPF, they must continue in the EPF, irrespective of any salary hike. EPF membership continues even after one's salary crosses Rs. 15,000 per month.
An employee will be joining our company, and his (BASIC+DA) will be more than Rs. 15,000 at the time of joining. He is already a member of the EPF in his previous company and has a PF Number and UAN Number provided by his previous employer.
Now my queries are:
1. Is he considered an excluded employee under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, even though he is a member of the EPF in his previous company?
2. Is he considered an included employee under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, even though his (BASIC+DA) will be more than Rs. 15,000?
3. Is he eligible for mandatory EPF contribution (compulsory EPF contribution) even though his (BASIC+DA) will be more than Rs. 15,000?
4. Is he eligible for the Voluntary Provident Fund (VPF)?
Please clarify.
Thanks and regards,
T. Thirumurugan.
From India, Hyderabad
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33Answer: An employee whose salary (BASIC+DA) at the time of entry into the EPF Scheme is more than Rs. 15,000. Once an employee becomes a member of the EPF, they must continue in the EPF, irrespective of any salary hike. EPF membership continues even after one's salary crosses Rs. 15,000 per month.
An employee will be joining our company, and his (BASIC+DA) will be more than Rs. 15,000 at the time of joining. He is already a member of the EPF in his previous company and has a PF Number and UAN Number provided by his previous employer.
Now my queries are:
1. Is he considered an excluded employee under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, even though he is a member of the EPF in his previous company?
2. Is he considered an included employee under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, even though his (BASIC+DA) will be more than Rs. 15,000?
3. Is he eligible for mandatory EPF contribution (compulsory EPF contribution) even though his (BASIC+DA) will be more than Rs. 15,000?
4. Is he eligible for the Voluntary Provident Fund (VPF)?
Please clarify.
Thanks and regards,
T. Thirumurugan.
From India, Hyderabad
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Existing Member Status and EPF Coverage
He is an existing member. An existing member means one who has not withdrawn his PF accumulations upon leaving the establishment. Since he is an existing member, he will not fall under the category of an excluded employee when he joins another establishment, even if his salary is higher than Rs 15,000. Needless to say, it is mandatory to cover this employee.
It is for this purpose that we are collecting Form 11 from every new joinee. The Form 11 declares whether the new joinee is an existing member or not. If the individual is not an existing member and is joining your establishment with a PF qualifying salary of more than Rs 15,000, then you can treat him as an excluded employee. Since such an employee is covered, he can even opt for voluntary contributions as well.
From India, Kannur
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He is an existing member. An existing member means one who has not withdrawn his PF accumulations upon leaving the establishment. Since he is an existing member, he will not fall under the category of an excluded employee when he joins another establishment, even if his salary is higher than Rs 15,000. Needless to say, it is mandatory to cover this employee.
It is for this purpose that we are collecting Form 11 from every new joinee. The Form 11 declares whether the new joinee is an existing member or not. If the individual is not an existing member and is joining your establishment with a PF qualifying salary of more than Rs 15,000, then you can treat him as an excluded employee. Since such an employee is covered, he can even opt for voluntary contributions as well.
From India, Kannur
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Employee Salary file - India 2016 AB.xls
Provident Fund - Excluded Employee - Definition.pdf