Understanding Excluded Employees in EPF: Do I Need to Contribute for New Hires with Existing PF Accounts?

Dear All,

I need to have some information about Excluded employees as per the PF Act. If a new staff member is employed whose starting pay is, let's assume, 7000/- Rs.; I understand he can be considered as an Excluded employee.

What happens if he/she was employed somewhere else and is having a PF account already, as at the time he/she was employed in the previous firm, his/her pay was under 6500/-?

If I employ such a person, do I have to continue contributing towards his PF even though at the time I employ him/her, he actually falls under the Excluded category? If I can still deem him as an Excluded employee, is there some Form/Declaration that needs to be taken? Does it have to be submitted to the local PF office?

Any help in this regard will be appreciated.

Thanks in Advance.

Dear all,

You are absolutely correct. If a person was a member of PF in a previous company, then he should be made a member in the present company as well, irrespective of his salary. However, if we do not want him to be a member of PF, we take a declaration from the employee on Form 11 stating that he was not a member in the previous organization. This form is not deposited with the PF office, but it is for our safety.

Regards,
J.S. Malik

Dear All,

I need some information about excluded employees as per the PF Act. If a new staff member is employed with a starting pay, let's assume 7000/- Rs.; I understand he can be considered an excluded employee.

What happens if he/she was employed somewhere else and already has a PF account because at the time he/she was employed in the previous firm, his/her pay was under 6500/-?

If I employ such a person, do I have to continue contributing towards his PF even though at the time I employ him/her, he actually falls under the excluded category?

If I can still deem him as an excluded employee, is there a form/declaration that needs to be taken? Does it have to be submitted to the local PF office?

Any help in this regard will be appreciated.

Thanks in advance.

Dear All,

Is there any specific clause that defines whether an employee (new joiner) whose basic salary is above 6500/- limit can or cannot be a member of the PF? Or is it not mandatory for those employees to become members?

Dear Malik ji,

What if an employee, excluded for, say, two years, wants to become a PF member now? Are there any restrictions from the employer's side or the PF Act for him becoming a PF member now?

Regards,
Puran Dangwal