Who is eligible to become a pf member and Rights of Employees

Who is eligible to become a pf member and Rights of Employee. Provident fund is an investment made by the employee during his work life along with contribution from employer to secure future. Information and details relating to GPF, EPF, and their applicability can be viewed here.

Who is eligible to become a pf member

All employees, employed in an establishment (includes employees employed through contractors, daily rated, piece rated, temporary, casual etc.).

“Excluded employees” need not be enrolled as PF members

Excluded employees are –

a) Employee drawing the wages (Basic + DA + Cash value of food concession) above Rs.15000/- as on the date of joining the establishment. (If the ‘wages’ of an employee is increased beyond Rs.15000 during the course of employment and after becoming a member of Employees’ Provident Fund, such employees are not to be treated as excluded employees. In such cases his contribution may be restricted to his wages upto Rs.15000/-.

b) Employees whose Employees’ Provident Fund Accounts were once fully settled after attaining 55 years of Age or on permanent settlement abroad.

Rights of Employees

Employees drawing wages above Rs.15000/- can also become a member of the Fund, if the employer and employee give a ‘joint declaration’ to the Regional Provident Fund Commissioner.

An employee at the time of joining an establishment should declare his previous Provident Fund Account Number/membership details to his present employer for communication to the Commissioner.

All employees should be enrolled as a Provident Fund member from the date of joining the establishment/factory

An employee who is enrolled as a member of Provident Fund is automatically eligible for the membership under the Employees’ Pension scheme, 1995 and Employees’ Deposit Linked Insurance Scheme, 1976.

In case an employee had attained the age of 58 or is in receipt of pension under Employees’ Pension Scheme, 1995, he is entitled to become a member of Provident Fund only and not eligible to join the Pension Fund.

A member of Employees’ Provident Fund will retain his membership even after his leaving from employment until his account is fully settled. He can avail the advance/withdrawal during the period he is out of employment. The benefit under EDLI Scheme is admissible only where the member died while in service.

A Provident Fund member who withdraws his Provident Fund dues and thus cease his membership under Provident Fund can continue his membership under Employees’ Pension Scheme, 1995, for availing the pension benefit.

When a PF member leaves one establishment and joins another establishment his PF account can be transferred to his new employer with a new account number, but with the same UAN. However, now the department has recently issued Universal Account Numbers to all subscribers and also developed an online process in which all any employee joining another establishment have to provide the Universal Account Number to his existing/ new employer. The Universal Account Number will be permanent and linked to the PF account number of the member. In such case the need for transfer of Provident Fund accumulations shall not be required.

A person who joins an establishment, wherein the EPF Scheme 1952 is already in force, should be enrolled as a member of PF, Pension and Insurance Schemes, from the date of his joining the establishment.


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