Is It Legal to Delay PF Until After Probation? Seeking Clarity on Recent Amendments

Hi,

I have been told that there are some amendments in the rules regarding the eligibility for PF. As far as I know, PF is given from the very first day an employee joins the company. However, there are companies that only provide PF after the employee is confirmed after probation. Is this legal?

I have also come across someone saying that an amendment has been made in the Act, and for a certain initial period, employees may not be given PF.

Hoping to receive valuable inputs.

Regards,
Deepti

Hi Dipti,

It's not legal under the EPF Act for probationers, part-timers, casual, temporary, contractual, or fixed-term-based employees to be covered under EPF if their Basic + DA is less than 6500. Only trainees/apprentices are not covered as defined in the Apprentice Act because trainees/apprentices are not employees.

I hope you will be satisfied with my quote, otherwise, you can wait for another reply.

Cheers,
Sudhir

Hi Deepti,

Sudhir is quite alright. There are some amendments in the PF withdrawal/loan rules. Presently, I do not have the details of the changes, but as soon as I get them, I will post them for information. Otherwise, PF is applicable from the very first day of joining.

Regards,
Ali

Hi Deepti,

It is not legal. The deduction of PF is compulsory from the very first day of joining of the employee except for Trainees/Apprentices. The ceiling for the PF is Rs. 6500.00 (Basic + DA).

Regards, Abhishek