Hi, I have recently joined Company ABC, which didn't enroll in EPFO early because the employees were above the mandatory slab of Basic pay (15k). Now we have hired junior staff to support our work and created PF accounts for 7 individuals in February 2023.
Here comes my doubt:
My management has decided to start the contribution from the financial year beginning (i.e., 2023-2024).
What should I do now for the employees who have already enrolled in EPF? Can I remove them all and create fresh accounts from April 2023? Will there be any problem if there is no contribution for February and March 2023?
From India, Coimbatore
Acknowledge(0)
Amend(0)
Here comes my doubt:
My management has decided to start the contribution from the financial year beginning (i.e., 2023-2024).
What should I do now for the employees who have already enrolled in EPF? Can I remove them all and create fresh accounts from April 2023? Will there be any problem if there is no contribution for February and March 2023?
From India, Coimbatore
Acknowledge(0)Amend(0)
Your query is not clear. Let me envisage it like this.
Initial PF Coverage Considerations
When you joined ABC, there was no PF. (Why? Obviously, the number of employees should be less than 20, I presume.) Was it that ABC, as an employer, was not covered by EPF? Or is it that since everyone was having salaries above Rs 15,000, you did not take RC under EPF? Then I would say that that itself was illegal provided you had 20 employees in your establishment. It is the number which will make an establishment covered by the EPF Act (like any other Act) and not the salary. True, you need not register those employees whose salary is above Rs 15,000. That also should be interpreted as employees who are not existing members of PF.
Registering New Employees
Now a few employees have joined in February, and their salary is within the limit of Rs 15,000. Then you should register them right now. You cannot wait for the next financial year to come. The coverage should be from the date of joining.
Questions on Employee Enrollment
The last set of questions... Still not getting. You have already enrolled them in February? Then why are you removing them? How can you remove them? Is it a kid's play?
From India, Kannur
Acknowledge(0)Amend(0)
4526Initial PF Coverage Considerations
When you joined ABC, there was no PF. (Why? Obviously, the number of employees should be less than 20, I presume.) Was it that ABC, as an employer, was not covered by EPF? Or is it that since everyone was having salaries above Rs 15,000, you did not take RC under EPF? Then I would say that that itself was illegal provided you had 20 employees in your establishment. It is the number which will make an establishment covered by the EPF Act (like any other Act) and not the salary. True, you need not register those employees whose salary is above Rs 15,000. That also should be interpreted as employees who are not existing members of PF.
Registering New Employees
Now a few employees have joined in February, and their salary is within the limit of Rs 15,000. Then you should register them right now. You cannot wait for the next financial year to come. The coverage should be from the date of joining.
Questions on Employee Enrollment
The last set of questions... Still not getting. You have already enrolled them in February? Then why are you removing them? How can you remove them? Is it a kid's play?
From India, Kannur
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf