How Can I Prove That Employees Who Withdrew PF Are Excluded? Seeking Advice

Purpose of PF Form No. 11

I have read a lot about the purpose of PF Form No. 11 on Google and on citeHR, which is as follows:

(1) If the new joiner was earlier a member of PF, and if yes, he should be given coverage even if his salary is more than Rs 15,000.

(2) If the new employee was not a member of PF in the past, he can be excluded in the present company also provided his PF qualifying salary exceeds Rs 15,000. A person receiving a PF pension or persons who have withdrawn the PF are also excluded employees.

Recently, a PF Inspector visited our office and asked us to provide coverage to the employees who were previously members of PF on a basic scale of Rs 15,000. However, some of our employees have already withdrawn their PF amount from their previous company.

As I have read, persons who have withdrawn the PF are also excluded employees. Now, how should I prove this statement in front of the PF inspector?

Members, I need your help in this regard. If anyone can share any government petition on this, it will be a great help or share any other way to prove this statement.

Thanks & Regards,
V S Anju

Inspector's Requirement for PF Coverage

On what basis is the Inspector (Enforcement Officer) requiring those who have joined your establishment with a salary above Rs 15,000 after fully withdrawing PF from the previous establishment? Is there anything written in Form 11 indicating the employee was previously a member of PF?

An excluded employee, as per the definition, is one who has withdrawn the PF accumulations upon attaining the age of superannuation or one who had to retire due to an injury, etc. The Officer is correct in demanding coverage if the withdrawal of PF was not made upon attaining the age of superannuation or at the age of 55 years.

However, once an employee has withdrawn their PF accumulations and the Pension Fund, they are no longer a member of the PF. Sometimes, though, they may write details of their previous membership in Form 11, leading to confusion. An employee who has withdrawn the PF and PS should not include details of their previous PF membership in Form 11. If they have done so, it should have been corrected.

Regarding any employee whose salary is not more than Rs 15,000, it is immaterial whether they were previously a member or not. They should be provided coverage now, even if they had withdrawn their past accumulations.

Thanks for the reply, Madhu.

Can I do the following actions:

1. Fill out the PF form 11 again for those who have withdrawn their previous PF and pension fund.
2. Provide PF coverage to the remaining employees.

Please share your suggestions.

Yes, you may collect a fresh Form 11 from those who have joined with a salary above Rs. 15,000. In the form, there should not be any mention of the previous PF account.