Can We Start EPF Deductions for an Employee Who Initially Opted Out?

Dear Seniors, There is one employee in our company who has been working with us since 03 May 2021. He had refused PF contribution at the time of his joining, and he had not contributed to EPF in any of his previous organizations. But now he wants us to deduct his EPF. We want to know if we can do this now. If yes, then what date should be mentioned in the Joining Date column of the EPF portal while enrolling him?

Thank you.

I am assuming that his salary at joining was higher than 15,000, and therefore, he was legally allowed to be exempt from PF. In that case, yes, he can make a request to be made a member of the PF, and you need to do it accordingly. However, please note that you need to contribute to his PF as well, and you are not allowed to reduce his salary to cover the employer's contribution to PF. CTC is not a concept legally accepted in Indian laws, so his gross cannot decrease. You need to put the date of his being added to PF as the date of joining.

Dear Senior, If an employee starts his contribution in EPF once, is it compulsory for him to continue his EPF contribution in a new organization even if his basic salary is above 15,000?

Thanks

Yes, once he starts his PF contribution, it must continue even after his salary crosses 15,000. Similarly, the employer's contribution must also continue.

Please note: PF is now calculated on the gross wages less HRA and OT, not just on the pure basic salary as before. Check the Supreme Court decision of 2019.