Can an Employee with a Salary Above 15,000 Insist on EPF Enrollment? Seeking Clarity

Good Afternoon All,

We faced a new situation. One new joinee's basic salary is 20,000, above the restricted PF wage ceiling. The employee wants to enroll himself in EPF, but the employer does not want to enroll him in EPF on the grounds that his basic salary is above the wage ceiling of 15,000, stating, "We will not enroll you in EPF."

Kindly suggest who is correct as per the Act. Can the employer do this when the employee wants to be enrolled in EPF?

Dear Ramesh,

If an employee is already a member of EPFO, then it is compulsory to enroll the employee on a change of job for EPFO, irrespective of his/her salary. However, the employer has a choice to restrict employer contribution to a maximum of Rs. 15,000. If the employment is fresh and the salary is above the prescribed ceiling limit, then it is not compulsory for the employer to register the employee for EPFO.