Confused About PF Contributions Not Showing Up in the Right Month? Let's Discuss Why and How to Fix It

Dear sir, please find the attached copy of the PF Member passbook for reference. One employee actually joined in Oct'17.

(i) His PF Contribution for Oct'17 - EE Share: Rs.1,568 (EPF) and ER Share: Rs.479 (EPF) + Rs.1,088 (EPS)
(ii) His PF Contribution for Nov'17 - EE Share: Rs.1,800 (EPF) and ER Share: Rs.551 (EPF) + Rs.1,250 (EPS)
(iii) His PF Contribution for Dec'17 - EE Share: Rs.1,800 (EPF) and ER Share: Rs.551 (EPF) + Rs.1,250 (EPS)

So, in total, his contribution is for 3 months towards EPFO. However, in his EPFO Passbook, only two months' contributions are reflected.

In this passbook:
(i) Oct'17 contribution is reflected in Nov'17,
(ii) Nov'17 contribution is reflected in Dec'17,
(iii) Dec'17 contribution is not reflected.

Questions and Clarifications

Q1: Why is the Dec'17 contribution not reflecting?
Q2: Why is every month's contribution not reflecting in the respective month itself? For example:
(i) Oct'17 contribution should reflect in Oct'17,
(ii) Nov'17 contribution should reflect in Nov'17,
(iii) Dec'17 contribution should reflect in Dec'17.
Q3: How can the employer overcome this issue?
Q4: In which month has he joined as per the EPFO Statement?
Q5: If the same employee leaves his job after attaining 6 months of contribution towards EPFO, can he get the EPS Share?

Every time, the last month's contribution is reflected in the next month. In other words, every time the contribution is reflected late by one month in the passbook. In his passbook, the contribution may reflect only for 5 months, even though he contributes for 6 months. For example, if the same employee leaves his employment in Mar'18, he completes a 6-month period from Oct'17. Obviously, he is eligible to claim his PF, including the EPS Share. But his Mar'18 contribution may reflect in Apr'18.

Q6: Which month will be considered as the exit month from employment as per the EPFO Statement for this case?
Q7: When can he apply for the PF claim: (i) Jun'18 [OR] (ii) Jul'18?

Please clarify.

Thanks with Regards,
T.Thirumurugan.

You are paying the salary of October in November, and you pay the contributions in respect of the wage month October in November. There are two months as per PF norms: Wage month and Return month. In the passbook, what you see is the payment of the wage month, i.e., Oct. What is the big problem in it???

Dear Thirumurugan, please find the reply to your query below:

Q1: Why is the Dec'17 contribution not reflecting?

The contribution will be submitted in Jan 2018, and only after the remittance of your PF amount will it be reflected.

Q2: Why is the monthly contribution not reflecting in the respective month itself?

The contribution can only be made after deduction from your salary. Since your salary for Dec 2017 was paid in Jan 2018, the contribution is also made in Jan 2018.

For example:
(i) Oct'17 contribution may reflect in Oct'17.
(ii) Nov'17 contribution may reflect in Nov'17.
(iii) Dec'17 contribution may reflect in Dec'17.

Q3: How can the employer overcome this issue?

What is the issue?

Q4: In which month did he join as per the EPFO Statement?

October 2017.

Q5: If the same employee leaves his job after attaining 6 months of contribution towards EPFO, can he get the EPS Share?

Yes.

Q6: Which month will be considered as the exit month from employment as per the EPFO Statement for this case?

March 2018.

Q7: When can he apply for a PF claim?

(i) June 2018 [OR] (ii) July 2018.