Can Retired Defense Personnel with a Basic Salary Below Rs. 6,500 Join the EPF Scheme?

Respected Seniors, Happy New Year to all of you. I want to know one thing: if we appoint a retired defense personnel in our organization and we fix his/her basic salary below Rs. 6,500, is that employee eligible for the EPF Scheme? Can we deduct and file his contribution as usual as other employees? Please give direction to me; it's urgent. Thank you in advance.

Since he became an employee within the definition of Sec.2(f) of the P.F Act, and his basic salary is Rs. 6500/- on the date of his joining, he is eligible for P.F deduction.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]

The PF is not only a savings tool but also secures the future of the employee and their family by providing a pension in the event of any unfortunate incident. Instead of determining eligibility, it is advisable to deduct for all employees to ensure a secure future for each employee and their family.

Wishing you all the best.

Thank you for your suggestion, and I am also in favor of the same. I have recently joined a new organization where we have contracted security services. I prefer not to disclose the name of the contractor here. They have hired ex-servicemen in their organization. The contractor charges a total of 12% + 13.61% contribution of EPF from us but only pays the 12% directly to the employee. I reached out to their representative to discuss this matter. He explained that since their employees are ex-servicemen receiving pensions from the government, they are not eligible for the EPF scheme. However, I pointed out to him that according to the EPF Act, they are still considered "employees" and should be eligible for all the benefits like any other employee. This discussion is ongoing with them. I seek more views and suggestions from experienced individuals like yourself, which is why I am bringing this matter up for discussion here.