Employee Wants to Join PF After Declaring Non-Membership: How Should We Handle This?

Dear All,

An employee joined the organization in 2015 with a filled PF Form 11 declaring that he was not a member of PF earlier, and we set his basic+DA above 15K. Now, in March 2017, he is asking to join the PF membership. Can we do that? If yes, will the Date of Joining (DOJ) be changed, or do we have to pay the contribution since 2015?

In Form 11, he has already declared that he was not a member of PF in the previous organization. Now, he is saying that he has a UAN which was not shared with us. He is requesting to join the PF membership. What can we do in this scenario?

Better warn him for giving false information or statements and take necessary disciplinary action. You may need to consider his EPF contribution, as his basic salary is above 15000/-. Both employee (EE) and employer (ER) contributions need to be accounted for EPF only, with no EPS contribution.

Form 11 serves as proof of not having an earlier EPF or UAN number. Based on the information declared by the employee, it is advisable to generate a new UAN number.

Thank you for your response. If we generate a new UAN, will PF contributions be paid for the relevant month?

If you consider him from now, the department will raise a demand from the date of the original joining, and will raise interest + damage demand on the employer. It's better to wait for a couple of months. EPFO is in the process of raising the ceiling from 15000 to 25000. At that time, the employer can include such employees from the effective date, provided their EPF salary (basic + da) is between 15000 to 25000.

Consideration of Provided Information

You should also take into consideration the information furnished in his "Resume" and your Company Application Form. If he was employed before joining your establishment, it is deemed that he was covered under EPF. Why was he not covered under EPF in his previous employment? The HR Department should also verify the information furnished in PF Form No. 11 and the Resume to ensure correctness.

Verification of UAN and EPF Accumulations

He has a UAN that is admitted. But has he withdrawn his previous EPF accumulations? Please check and revert with full information.

@Srinath: Sir, he has already withdrawn his PF money. My question is, can we start contributing to his PF now? Can we do that?

EPF Coverage for Employee with Prospective Date

Yes, you can cover him under EPF with a prospective date, i.e., from April 2017. However, he cannot become a member of EPS since his EPF wages are above Rs 15,000. Consequently, the employer's share of EPF at 12% should be remitted to A/C #1. For A/C #10, there is nil contribution.

Please take a letter from the concerned employee for record-keeping purposes as outlined below:

I have been employed by your company since April 2015. However, I have not been covered under the EPF Act due to my basic salary exceeding the ceiling limit of Rs 15,000. Furthermore, I had withdrawn my previous PF accumulations before joining your establishment in April 2015.

I hereby request to be covered under the EPF Act effective from April 2017 based on my actual basic salary. I am providing my UAN for linking it to your establishment.

Thank you.

[Employee's Signature]

[Date]