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No EPF contribution by startup

Shivendra Pratap Singh

Advocate (Lucknow)

Online advising since Oct. 2014

Service & Labour

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Question: No EPF contribution by startup. I switched job in 2018 from a MNC to a startup with 20+ employees. The startup is not contributing to the EPF. At the time of joining they said I could opt out (basic salary 15k+) of it and I agreed and completed the formalities. I am joining a new company now and they are asking for my PF statement. I do not have one but I do have a UAN number. 

Is there a legal infirmity from my end in this case? Can my new employment be terminated on this ground? Can we opt out of EPF when joining a  new company? I am confused because some people say we can while others say we can not. Please guide me on how to proceed with the new company. 

Asked from: Uttar Pradesh 

It was mandatory for your company to contribute to the provident fund. You had been getting a salary of more than fifteen thousand hence, the provision of employee provident fund scheme was applicable. 

Provident fund contribution is mandatory if an employee (labour) is receiving a basic salary above six thousand five hundred rupees per month and he is employed in an organisation having more than twenty employees.

Your current company (employer) cannot fire you on the ground of not having an EPF account. In this condition, you should open your EPF account. The current employer will contribute to your EPF account. The loss you suffer is to not get benefits when you were employed in the previous company. However, you can claim contribution from your old company by filing a complaint before the assistant provident fund commissioner of Employees Provident Fund Organization (EPFO). 

shivendra pratap singh advocate

Shivendra Pratap Singh

Advocate (Lucknow)

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