Dear Jony, I'd like to add what you have said is partially correct. There is a technical hitch involved in the situation as mentioned in the example. If someone who has earliar worked for a company where he was a member of EPF (no matter his basic was less than or more than 6500) and he joins a company where EPF is applicable before completing the two months period.Then in this case technically the employee cannot withdraw his EPF accumulation because his EPF membership is treated as continued (though he is now in seprate company). If you see the Form-19, there is a declaration and employee signs when he fills up the withdrawal form, that he has not worked in an establishment for at least two months where the EPF Act is applicable. Hence, suppose he leaves the company in Dec and joins the new company say in Jan- or even in Feb, technically he is re-employed in a company where the EPF is applicable so if he fills up the withdrawal form he'll sign the "technically wrong" declaration and hence he cannot withdraw his EPF. Further, please refer to the defiination of the excluded employee in Para 2(f) Part(i) and (ii) of the EPF Scheme. According to it the excluded employees are catagorised in two catagories firts are those who have retired as per age or as per infirmity or leaving service before migrating from india for service abroad. (now a third catagory has also been added that of expat (international workers of those countries with which India has signed the "totality agreement")). While the second catagory is of those who are otherwise entitled to become member but their pay is more than Rs.6500/-. Now a narrow clarification of this defination'd only a "fresh" employee who is otherwise entitled can only be left out when his basic is more than 6500, but in our case the employee is already a member of the EPF Scheme and hence he is not a "fresh" case therefore he cannot be held to be in the Part(ii) of the Para 2. So, in my view, following conclusion is drawn, that an employee cannot "theoratically" withdraw his EPF accumulations (practically there is nothing like it, there is no check at the EPF office end with regard to who is going out and who is going in-I have seen cases where the employee resignes from service in Aug and joins the next month and submit the withdrawal form and get the settlement of their old account) and hence cannot remain out of the EPF Scheme in the new company. If someone has different opinion/suggestions, please share. Best Regards Amit Kumar