Understanding EPF Eligibility: How Long Must New Employees Work Before Qualifying?

Dear Senior,

Please inform me that I am working in a construction company. Here, a minimum of 5 employees join and leave our organization monthly. I am referring to new joiners. We have to pay their salaries, but I want to know whether they are eligible for EPF or not. What is the minimum number of days an employee must work to be eligible for EPF?

Sanchita

Dear Sanchita,

Applicability under EPF & MP Act 1952 on a statutory basis is 20 or more than 20 employees on any working day. In case you have a high labor turnover, you need to ensure that once you reach 20 employees, you are bound by the Act.

There is a provision in the act under section 1(4) if you wish to opt voluntarily, but it involves a lot of paperwork.

By the way, where are you located? Please reply to me for any further queries.

Ridham
BA DLL
For R N Consultas
Voice: 09833 6060 65.

It is mandatory on the part of the employer for any employee, even if they have worked for just one day, to remit their PF to EPF. Previously, a waiting period of 60 days was allowed, but with the recent amendment, this waiting period has been withdrawn.

Regards,
Rajendra Bhavsar

Mr. Ridham,

Can you help me with a situation where one employee may leave our organization this month, and my boss does not wish to include him in EPF (he has been working since Feb '09), even though we received his PF number only this month? Should I hide his name and contribution from EPF? I have not deducted any amount from his salary. Alternatively, should I submit all PF contributions to EPFO only if he continues to work? Is this feasible or is it considered illegal?

Please advise.

Sanchita