Is PF Deduction Required for HR Executives on Probation in Manufacturing Firms?

Hi All, I am working in a manufacturing firm. I wish to know whether an HR Executive on a probationary period is liable to have a PF deduction. Your help and responses are deeply appreciated.

Regards, Mehnir

Yes, from the first day any person joins any establishment as an employee, the employer is liable to deduct provident fund. This law was introduced in the late '90s.

Regards

Employee Coverage in Provident Fund

It has nothing to do with designation. If an organization is covered, and if an employee's salary is Rs 6500 or less per month (this will not include HRA), they will be covered.

If your establishment is covering employees with a salary of more than Rs 6500 per month in PF, then all employees, irrespective of salary, will be covered from day one.

Provident Fund Membership and Deductions

Once a candidate joins an organization, they become an employee of the organization and a member of the Provident Fund from day one. On the very first day, Form 2 (Nomination and Declaration) is filled out and collected from the employees. When sending the remittance challan copy to the PF office (which must be sent on or before the 15th of the subsequent month of salary received), it should be submitted along with Form 5 and Form 10. Form 5 is for newly joined members in the PF, and Form 10 is for employees who have left the service.

Therefore, from the first day of joining a company, you are liable for PF deduction.

I agree with the previous replies. From the date of joining, you are liable for the provident fund.

Regards, Megha Sharma

If the company is applicable for PF (having 20 or more employees), it is compulsory to deduct the PF of the employees from their joining date. If there are below 20 employees and the basic salary of the employee is above Rs. 7000/-, then they will be exempted from PF. However, if the employee's PF was deducted in their previous company, then it is compulsory to deduct their PF in the current company as per the law.

Regards,
Trupti.

I am on probation in the Government of India Group 'A' service. Before joining this position, I was working in another Government of India department. I transitioned to this department through the proper channel by tendering my technical resignation. However, my new organization is not deducting my contributions towards the provident fund. Please advise me on the appropriate course of action.

Regards,
Sudhir Singh

Dear Mr. Sudhir Singh, it appears there is some mistake in your pay office. Once you are a member of the Government Provident Fund (PF) in any organization, any subsequent employer must deduct and deposit the PF in that account. For further clarification, please go through the following act:

THE ALL INDIA SERVICES (PROVIDENT FUND) RULES, 1955

In exercise of the powers conferred by sub-section (1) of section 3 of the All India Services Act, 1951 (LXI of 1951), the Central Government, after consultation with the Governments of the States concerned, hereby makes the following rules, namely:

1. Short title: These rules may be called the All India Services (Provident Fund) Rules, 1955.

This act is available on the internet, and you can download it and provide it to your department, and they will rectify the mistake.

Regards