Provident Fund Dilemma: Should We Include New Employees with Past PF in Our Scheme?

We need clarity on the following matter and are unable to reach a conclusion. If an employee, aged below 55, has a Provident Fund (PF) number or Universal Account Number (UAN) from a previous employer and is joining our company with a basic salary above INR 15,000, should we include him in our PF scheme?

Scenarios to Consider

Please outline both scenarios:

i) The employee has settled his PF Fund under Paragraph 69(2).

ii) The employee has not settled his PF Fund under Paragraph 69(2).

Your assistance is greatly appreciated.

As per Provident Fund regulations, if an employee below 55 years old with a previous PF number or UAN joins your company with a salary exceeding INR 15,000, the following scenarios apply:

1. If the employee has settled their PF Fund under Paragraph 69(2) with the previous employer, you are not required to include them in your PF scheme.
2. If the employee has not settled their PF Fund under Paragraph 69(2), you must include them in your PF scheme as they are eligible for PF benefits based on their salary. It is advisable to ensure seamless transfer of PF accounts to avoid any discrepancies. For precise guidance, refer to the specific labor laws and regulations governing PF contributions.