PF Covered And PF Exempted Employees In Same Company

Hi,
Can an organisation have some employees covered under PF and some employees excluded from PF.
The Employees on the rolls of the company when the company was registered under PF are covered under PF and the new employees the company has employed who are being paid above 6500 basic have been excluded from PF.
Is this allowed and correct / or will this lead to dispute with the department

Dear Sanjay
If at the time the shcme became applicable to your estbalishment the refered employees were earning Basic exceeding the prescribed basic at that point of time and hence were excluded, can continue to be excluded.
However if they were members once and since their Basic has increased over period of time, they can not be excluded.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65

It is very well possible.
If a new employee joins with more than 6500 basic, he can be excluded.
As rightly said by Shailesh, if an employee is covered before, he needs to be continued to be covered even after his basic exceeds 6500/-. However, his PF contribution can be capped at 6500/-.

I may add further that if an employee though getting more than 6500 but was a member of EPF in his earlier employment ,will remain a member of EPF in new estt. also.
Chandok AK
RPFC (Retd.)
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