Navigating PF Challenges: What to Do When Your New Job Doesn't Offer a PF Account?

I have been working in an industrial organization for almost 3 years and have served two companies. Now, I have recently joined another organization (academic) where I am not entitled to any PF. I did not transfer or withdraw the PF amount from my last two companies. What should I do now as I do not have a new PF account here? Please suggest.

If, based on your salary, you are not entitled to the PF, then you can opt for the same. Open a new PF account with the current organization and transfer the previous PF amount to the new one.

Entitlement to Provident Fund (PF)

How are you not entitled to PF? If the provisions of the EP&MP Act are applicable to this new company and they have a PF Code, then you cannot opt out. You have to be mandatorily enrolled as a member of the PF fund as per the provision of Para 26 of the PF Scheme. In case an employee has been a member of the PF scheme, then regardless of his/her salary, they cannot be excluded.

Regards

As per my understanding, if the employee is a member of the PF scheme in the existing organization, then only he/she is eligible for PF. However, when an employee joins a new company and their basic salary is more than Rs. 6500/-, how can he/she be covered under the PF scheme? In this situation, he/she can choose to opt for PF for future prospects.

Thank you.

I have joined a government institute as an engineer on a one-year contract. What I get is only a basic salary + House Rent Allowance (HRA). So, how should I manage my earlier Provident Fund (PF) in this situation?

Hello, Vyasamkumar,

You will have to visit both of your previous companies and fill out Form 19 for the Employees' Provident Fund Scheme, Form 10C for the Employees' Pension Scheme, Form 5, and a statement of non-reckonable service. You can obtain these forms from the PF office, okay?

I am Ashish Dwivedi, HR Executive.