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EPFO clarifies PF eligibility for employees earning above ₹15,000
EPFO said PF is optional for first-time employees earning above ₹15,000, but mandatory continuation applies if an employee is already an EPF member.
The Employees’ Provident Fund Organisation has clarified long-standing confusion around PF applicability for higher-paid employees. EPFO stated that PF membership is not mandatory for employees whose basic salary plus dearness allowance exceeds ₹15,000, provided they are joining formal employment for the first time and have never been EPF members earlier. Such employees can legally opt out at the time of joining. However, the rule changes once an employee is already enrolled in EPF.