Rejoining Employees and EPF Deductions: Is It Legal to Stop Contributions?

EPF Deductions and Rejoining Employees

Mr. X is working in an organization and receiving a salary of Rs. 40,000 per month. He benefits from EPF deductions from his salary as per regulations.

One day, he submitted his resignation and left the job. Due to certain reasons, he rejoined after a month on the same salary (Rs. 40,000 per month). The organization provided a new salary breakdown for him with a Basic Salary of Rs. 15,100 and Other Allowances of Rs. 24,900 (including conveyance, medical, HRA, etc.), but this time, EPF was not deducted.

Question on EPF Compliance

Given the above situation, my question is, "Is it legal and compliant with EPF regulations to cease EPF deductions when an employee rejoins within a month? Is it possible to halt EPF deductions for rejoining scenarios, such as returning after 2 months or 6 months?"

Additionally, could someone please share any official communication or office order pertaining to this situation?

Any employee covered under PF cannot be exempted unless they withdraw the PF and claim pension. Otherwise, they continue to be covered under PF with the same PF number, despite a break in service.