Legal Question in Employment Law in India

13.03.2014

Dear Sir / Madam,

No. If the Company has an established Provident fund for its employees, the contribution thereto is mandatory on the employee completing 90 days of service or from the date of confirmation of service, whichever is earlier.

As per the prevailing provisions of the Employees Provident Fund Act an :

�Excluded Employee� means :-

(i) an employee who having been a member of the Fund withdrew the full amount of his accumulations in the Fund under Rules 23(1)(a) or (c).

(ii) an employee whose pay at the time he is otherwise entitled to become a member of the fund exceeds Rupees Six Thousand Five Hundred Only per month.

Explanation:- �Pay� includes basic wages with dearness allowance, retaining allowance (if any), and cash value of food concession admissible thereon.

(iii) and Apprentice.

Explanation:

An �apprentice� means a person who, according to the certified standing orders applicable to the factory or establishment, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government.

If the employer has constituted a Fund for the welfare of all its employees and deductions are being initiated thereto from the employee's salary towards contribution to the Fund, the employer is legally bound to make an equivalent contribution as made by the employee to the fund established for this purpose.

Normally, deductions of Provident Fund are made on the employee completing 90 days of service in the Company.

Regards,