Is PF deduction is compulsory on Reappointed Employee with a Salary Hike - CiteHR
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Hi, I have a query for you Guys.
Please tell me that a employee has resigned from the company at that time his salary was 13000₹ so he was under PF contribution.
But after two or three months he rejoined our company but his salary now is 17500₹. Please tell me as an employer, I have to take him under PF or not. I mean to say that he is above 15000 salary limit now. I don't want to enroll him in PF , can I do that. Or it is compulsory to take him in PF even after salary hike and rejoining after two or three months.
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This is nothing but bypassing PF Act. The employee was member of EPFO 2 or 3 months before and hopefully he has not settled his PF dues. He may settled also. In FORM-11 , the employee has to declare that he was member of EPFO with his UAN number. Therefore, there is no alternate other than to make him member of EPFO but the contribution may be limited on INR 15,000/- per month.
If the employee provides false declaration in FORM-11, it will be risk for both employee and employer in case of any inspection. Moreover, this is social security scheme and for the future of the employee it is better to be member of EPFO instead bypassing it.
S K Bandyopadhyay ( WB, Howrah)
+91 98310 81531

Dear Mr. SK Bandyopadhyay
as per EPF Scheme, Para 69, (5) - Any member who withdraws the amount due to him under subparagraph (2) shall, on obtaining re-employment in a [factory or other establishment] to which the Scheme applies, be required to qualify again for the membership of the Fund and on qualifying for membership shall be treated as a fresh member thereof.
It means on his re-employment, he should required to qualify for EPF. so if his salary is more than 15000/ then he may not be EPF member.
employer may allow to make him as PF member but in joint request in writing .
Dear Mahesh,
As per your explanation which is legally right, all organizations will ask their employees to resign and rejoin after 2 or 3 months gap with more than 15,000/- wage ( Basic+DA) who were earlier member of EPF - Huge savings by the Employer and probably will not be accepted by the EPFO authority as it is nothing but bypassing law.
Moreover, while filling up FORM-11 at the time new appointment the declaration that he/she will mentioned regarding their earlier membership of EPFO 2 or 3 months before will also be questioned by the EPFO authority.
Rest is your judgement how to deal with the matter.
Best Regards,
S K Bandyopadhyay (WB, HOWRAH)
+9198310 81531

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