EPF Act Confusion: Can a New Employer Exclude an Employee Earning Over Rs. 15,000?

nrvyas
My query is under EPF Act. If an employee was a member of EPF at their last employer and at the new employer, he/she received more than Rs. 15,000 as basic salary, can the new employer consider this new employee as an excluded employee and ask them to fill up the revised Form No. 11? Please advise.
compliancefirst
Hi Nrvyas,

An employee can only be excluded if they have not been a member of the PF at any point before, even if they receive a salary of more than 15,000/-. However, if they have been a member of the PF previously, they cannot be excluded. Once a member of the PF, always a member unless and until their PF account is closed. An employee cannot withdraw their PF while employed; unemployment is the only criteria under which PF can be withdrawn, and the account gets closed.

Regards,
Compliance First
ceasekk123@gmail.com
Hello Sir,

If an employer says that he will not deduct PF more than Rs. 15,000, what should we do?
vmlakshminarayanan
Hi,

An employer is bound to deduct PF if the employee is already covered under the PF. However, the employer has the option to restrict it to ₹15,000 and is not liable to pay the employer's contribution for anything above ₹15,000.
nrvyas
Dear all,

Thank you for your contribution.

If an employee has withdrawn money from the EPF account and at the new employer, their basic salary is more than 15,000, in that case, can the new employer consider them as an excluded employee? Or can they continue with the same UAN? Please advise.
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