Can My EPF Account Stay Dormant for 2 Years While I’m on Probation at a New Job?

I am resigning from an organization where EPF was deducted and joining another organization not deducting EPF in the probation period (2 years).

I want to know if an EPF account can remain idle for 2 years and if it can be activated after two years.

Dr. Rajesh Verma

Hello,

EPF has nothing to do with the probation period. As far as my knowledge is concerned, the employee gets registered within one month of joining as per the rules and regulations of the PF Act. And a 2-year probation period? Isn't this too much? Generally, it is 6 months. I have heard for the first time that the probation period is this long.

Our friends will shed some light on this.

Regards, Chaitali

Hi,

What Chaitali has said is absolutely right. The probationary period is usually for 6 months or to a maximum of 1 year. Even under the probationary period, you will have EPF deductions applied.

Requesting senior members to provide their inputs.

Regards,
Dilnaz

Hi,

I agree with all that Chaitali and Dilnaz have said. However, I would like to give one suggestion: it would be better for you to withdraw your previous PF contribution from your previous employer. To do so, you may apply after 60 days of separation from the organization by filling up Form 10C and Form 19, along with the No Dues certificate from the previous employer.

Regards,
Amit Seth

Your EPF account will remain idle for the period during which you and the employer are not contributing towards your EPF account. As per the act, this period will be treated as a non-contributory period.

Yes, the same account may be activated after two years if you start contributing to your existing account.

Moreover, in principle, an employee shall be covered from day one of his employment; there is no question of probation or regularity, etc., under the EPF & MP Act - 1952.

Surprisingly, your company has a two-year probation period, which is neither in practice nor feasible or ethical, but rather a malpractice. Even if you are in probation, your employer is under obligation to enroll you as a member of EPF; otherwise, it will be a violation of the Act.

If your employer covers you as a member of EPF, then only can you transfer your previous accumulation of PF account given by your last employer (fill Form 13 and process it through your existing employer).

The last option available is to withdraw the accumulation of your PF by filling Form 10C (for Pension Fund if the previous contribution is less than 10 years) and Form 19 (For PF Accumulations).

Hope this clarifies your doubts.

For further clarification, you can write to me at [Login to view].

Mohd. Arif Khan

Hello all.

I think Dr. Rajesh Verma will be receiving a consolidated pay. If the company is paying a consolidated pay, then management has no obligation to contribute to EPF. Please correct me if I am wrong.

SK.M

Hello, Arif. Thanks a ton for such a clear explanation. I do have a query: "Is it possible to contribute voluntarily in EPF and EPS?" Mr. X is new to our org. He is a member of EPF and EPS. Our organization is not covered under the PF Act. Till now, this employee has neither opted for withdrawal nor transfer of his PF amount. Is it possible that he can voluntarily contribute to his above-stated accounts? Please shed light on this issue.

Regards,
Revathi

Dear Rajesh,

As per my knowledge, PF is deducted on the very first day of your joining in the company. It doesn't matter if you are on probation or a regular employee.

Dear Rajesh,

As per the company law, PF does not depend on your probation period; it will start from your joining date. Therefore, such company norms are incorrect, and I advise you not to join this type of company.