Hi, I have recently joined in a Company ABC which didn't enroll in EPFO early because the employee's were above the mandatory slab of Basic pay (15k). Now we have hired junior staffs to support our works and created PF account for 7 no's in February 2023.
Here comes my doubt, my management has decided to start the contribution from Financial year starting (i.e. 2023-2024).
What should i do now for the employees who have already enrolled in EPF?
Can i remove then all and create fresh from Apr 2023?
Will there be any problem if there is no contribution for Feb & Mar 23?
From India, Coimbatore
Here comes my doubt, my management has decided to start the contribution from Financial year starting (i.e. 2023-2024).
What should i do now for the employees who have already enrolled in EPF?
Can i remove then all and create fresh from Apr 2023?
Will there be any problem if there is no contribution for Feb & Mar 23?
From India, Coimbatore
Your query is not clear. Let me envisage it like this.
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 15000, 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 EPF Act (like any other Act) and not the salary. True, you need not register those employees whose salary is above Rs 15000. That also should be interpreted as employees who are not existing members of PF.
Now a few employees have joined in February and their salary is within the limit of Rs 15000. 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.
The last set of questions.....Still not getting. You have already enrolled them in Feb? Then why are you removing them? How can you remove them? Is it a kid's play?
From India, Kannur
4249When 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 15000, 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 EPF Act (like any other Act) and not the salary. True, you need not register those employees whose salary is above Rs 15000. That also should be interpreted as employees who are not existing members of PF.
Now a few employees have joined in February and their salary is within the limit of Rs 15000. 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.
The last set of questions.....Still not getting. You have already enrolled them in Feb? Then why are you removing them? How can you remove them? Is it a kid's play?
From India, Kannur
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NO PF Contribution on Leave Encashment - SC judgment-Clarif ication by EPFO.pdf