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Hi,

I have been told that there are some amendments in the rules regarding the eligibility for PF. As far as I know, PF is given from the very first day an employee joins the company. However, there are companies that only provide PF after the employee is confirmed after probation. Is this legal?

I have also come across someone saying that an amendment has been made in the Act, and for a certain initial period, employees may not be given PF.

Hoping to receive valuable inputs.

Regards,
Deepti

From India, Mumbai
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Hi Dipti,

It's not legal under the EPF Act for probationers, part-timers, casual, temporary, contractual, or fixed-term-based employees to be covered under EPF if their Basic + DA is less than 6500. Only trainees/apprentices are not covered as defined in the Apprentice Act because trainees/apprentices are not employees.

I hope you will be satisfied with my quote, otherwise, you can wait for another reply.

Cheers,
Sudhir


From India, Delhi
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Hi Deepti,

Sudhir is quite alright. There are some amendments in the PF withdrawal/loan rules. Presently, I do not have the details of the changes, but as soon as I get them, I will post them for information. Otherwise, PF is applicable from the very first day of joining.

Regards,
Ali

From India, Hyderabad
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Hi Deepti,

It is not legal. The deduction of PF is compulsory from the very first day of joining of the employee except for Trainees/Apprentices. The ceiling for the PF is Rs. 6500.00 (Basic + DA).

Regards, Abhishek

From India, Delhi
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