PF Mandatory Salary Above 15000? EPFO Clears Big Confusion for Employees

If an employee's basic salary and DA combined exceed ₹15,000, is it mandatory for them to contribute to the Provident Fund (PF)? The Employees' Provident Fund Organisation (EPFO) recently provided an important clarification on this question, which is crucial for millions of salaried individuals.

Is PF Mandatory If Salary Exceeds ₹15,000?

According to the EPFO, employees whose salary is more than ₹15,000 and who are joining a job for the first time are not required to join the PF. This means that if an employee has never been an EPF member before, they can choose to opt out of the PF in their new job.

Existing PF Members Changing Jobs

However, the EPFO ​​has also clarified that the rules are different for employees who are already PF members. Even if such employees' salaries exceed ₹15,000, their PF membership will continue. PF membership cannot be discontinued upon changing jobs.

Voluntary PF Option for Salary Above ₹15,000

The EPFO ​​also highlighted another important point. With the mutual consent of both the employee and the employer, an individual earning more than ₹15,000 can voluntarily join the PF. This facility is provided under Para 26(6) of the PF scheme.

6-Month Deadline You Must Not Miss

However, it is crucial to keep a time limit in mind. According to the EPFO, this option must be submitted to the EPFO ​​office within 6 months of joining the job. If this deadline is missed, it may be difficult to join the PF later, even if both the employee and the company agree.

Why Continuing PF Is Beneficial for Employees

This rule is particularly beneficial for employees who want to save more for retirement in the long term or want to keep their old PF account continuously active.

Meanwhile, another issue related to the EPFO ​​has surfaced. Several members have reported that they are unable to view their EPF passbook entries for September and October. This has caused concern for those who regularly monitor their PF contributions and balance.

EPF Passbook Not Updated for September–October: Reason Explained

The EPFO ​​has stated that the delay in passbook updates is due to technical reasons. According to the organization, a new Electronic Challan-cum-Return (ECR) Ledger System has been implemented, which is causing delays in updating entries for September and October. The EPFO ​​states that the process is ongoing and all details will soon be visible in the passbook.

For the convenience of its members, the EPFO ​​recently launched a new feature called Passbook Lite. This allows members to view their PF balance and contribution details in a concise and easy-to-understand format. Now, there is no need to log in to a separate portal to view the passbook.

Several easy methods are also available to check your PF balance:

• You can log in to the EPFO ​​Member Portal using your UAN and password to view your complete passbook.
• The UMANG app provides PF balance and recent contribution details directly on your mobile phone.
• You can get your balance via SMS by giving a missed call from your registered mobile number to the EPFO's authorized number.
• PF balance can also be checked through an SMS service, which is available in several regional languages.

In addition, the EPFO ​​has made another significant improvement. Employees can now download Form 13 online, which is required for PF transfer when changing jobs. Annexure K (Transfer Certificate) can also be obtained directly from the EPFO ​​portal. This has made the PF transfer process more transparent and easier.

In summary, PF is not mandatory for those earning more than ₹15,000 per month, but they can opt to join under certain conditions. The technical issue related to the passbook is temporary and, according to the EPFO, will be resolved soon.

Also Read - UAN Generation and Activation Now Only Through UMANG App – Complete Guide Inside

Q1. Is PF mandatory if salary is above ₹15,000?

No. If an employee is joining their first job and earns above ₹15,000, PF is not mandatory.

Q2. Can existing PF members opt out if salary increases?

No. Once PF membership starts, it cannot be discontinued even if salary exceeds ₹15,000.

Q3. Can high-salary employees join PF voluntarily?

Yes. With employer consent, employees earning above ₹15,000 can join PF under Para 26(6).

Q4. What is the deadline for voluntary PF enrollment?

The option must be submitted within 6 months of joining the job.

Q5. Why is EPF passbook not updated recently?

EPFO says the delay is due to the new ECR Ledger System and will be resolved soon.