Can Higher Earners Opt Into EPF with a Fixed ₹1,800 Monthly Contribution?

We know that it is mandatory for all employees with a basic salary of less than ₹15,000 to register for the EPF. However, can employees earning more than ₹15,000 also join the EPF scheme with a fixed contribution of ₹1,800 per month (i.e., 12% of ₹15,000)?

Hi, PF is compulsory for them. They can either contribute Rs. 1,800/- with a restriction of Rs. 15,000/- or pay based on the actual basic salary.

First of all, it has to be checked whether the employees drawing more than ₹15,000 salary per month are excluded employees or not. If they are excluded employees as per the EPFO Scheme, PF is not compulsory for them, but they may be members voluntarily. However, if they were earlier members of EPFO, then it is compulsory for PF membership if they have not closed their past PF account and are rejoining.

S K Bandyopadhyay (WB, HOWRAH) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] http://www.usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity

Sir, how can one identify if a past PF account has been closed? To my knowledge, a PF account can't be closed.

Also, could you elaborate on what you mean by rejoining so that I can understand the concept better?

PF Account Closure Conditions
A PF account can be closed under certain conditions. For example, if an employee was a member of the EPFO and left the job after working for a few years for higher studies, marriage, maternity matters, etc., they can withdraw their accumulated amount from PF & EPS if they have less than 10 years of service. If they later join any organization with a PF gross of more than ₹15,000 per month (as of the current date), they will be considered an excluded employee.

S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
http://www.usdhrs.in – To Strive towards excellence with effort and integrity

Sir, is the PF considered closed if the employee just withdrew his PF amount and not his pension amount and has not worked for a PF firm since leaving the last PF firm?

There is an employee who wishes to join a firm that had PF because he worked for the same firm previously where PF was offered to him. However, he now states that he has not been part of PF for many years after leaving the present firm. The firm is not sure whether he has closed his PF account, and the employee is not providing a clear answer on whether his account exists or is closed. The employee wishes to join the firm but does not want any PF/ESI deduction since he is joining at a salary of 25k.

The firm wants to hire the employee but does not want to incur additional expenditure on the employee. Can the firm just accept what the employee is saying at face value and hire him without PF/ESI deductions? Or should the firm be advised otherwise?