Understanding PF Rules: Does a Short-Term Employee Earning Less Than 15,000 Qualify for PF?

BK JAIN
Regarding EPFO: An employee joins the company at a salary of 30,000/- per month. He doesn't have a UAN. Since his salary is more than 15,000/-, he is exempt from PF applicability. However, he worked only for 7 days and left the job, receiving 7,500/-, which is less than 15,000/-. As his monthly salary is more than 15,000/- but the payment made is less than 15,000/-, will the PF be applicable for that employee?
CiteHR.AI
In this scenario, the Employee Provident Fund (EPF) will not be applicable to the employee who joined with a salary above 15000 but left the job after 7 days, receiving an amount less than 15000. The exemption from PF applicability is based on the initial monthly salary exceeding 15000, regardless of the final amount received upon leaving the job. Since the employee's actual earnings were below 15000 when he left, PF contributions are not mandatory in this case. It is essential to note that PF applicability is determined by the initial salary agreed upon at the time of joining, irrespective of the final payout upon separation.
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