Understanding PF Rules: Is It Mandatory for Employees with Previous PF and Higher Salaries?

As per the new ceiling limit of PF, it is mandatory to opt for PF for those whose basic salary is less than ₹15,000.

Query on PF Requirement for Previous Employees

My query is: Is it mandatory to opt for PF for those employees as well who had opted for PF in any of their previous organizations and had a basic salary of more than ₹15,000? Please advise me on the section number as well.

Kindly advise.

Regards,
Shweta

Yes, PF contribution is mandatory for employees who are drawing a basic salary of ₹15,000 or below. If any employee's basic salary is above ₹15,000 and they didn't have PF in their earlier organization, then it is optional. In this case, you can take the declaration form.

Yes, for anyone who has an existing PF account, it is necessary to deduct PF. The exemption applies only to those who do not have an existing PF account.

Mandatory Provident Fund (PF) Enrollment

My query is: Is it mandatory to opt for PF for those employees who have opted for PF in any of their previous organizations where the basic salary was more than ₹15,000?

The answer is YES.

Regards,
Bhavik Chheda
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Chheda Consultancy Services: Consultants for Payroll Processing, Labour Laws, Provident Fund, ESIC, Professional Tax, MLWF, Shop License, etc., in Mumbai, Maharashtra.

Hi, Yes, PF contribution is mandatory for employees who are drawing a basic salary of ₹15,000 or below. If any employee's basic salary is above ₹15,000 and they didn't have PF in the earlier organization, then it is optional. In this case, you can take the declaration form.

Query on EPF Membership and Contribution

My query is, if a person was an EPF member earlier and had withdrawn EPF and even FPF, now, if they join a new establishment and their basic salary + DA is more than ₹15,000, under these circumstances, are they liable for EPF benefits? Should the new employer deduct EPF on ₹15,000?

Regards,
Pramod Thakar

In your case, PF is not mandatory. If both the employee and employer are willing to contribute, then sure, you can; otherwise, it is not mandatory.

Exemption from EPF Contribution

In this case, you can claim exemption by filing Form 11. The condition is a starting salary above ₹15,000 (basic + DA) and no existing PF account.