COVERAGE OF A NEW EMPLOYEE UNDER PROVIDENT FUND SCHEME

If the wage/salary of a new employee is above Rs.6500 per monthand he has not been a member of Employees’ Provident Fund orbeing member, has settled his account then he is not to be enrolledas member of the Scheme. However, if the employer and theemployee both agree, there is no bar in enroling such anemployee as member under the Employees’ Provident FundsScheme, 1952. Para 34 of the Employees’ Provident Fund Schemeprovides for a declaration by a person before taking upemployment to state in writing whether or not he is a member ofthe Fund and, if so, the relevant details thereof are to be given.As such for every new appointee, an employer must obtain thedeclaration in Form-2 prescribed for this purpose. Uponenrolment it needs to be submitted as prescribed under Para 33of Employees’ Provident Funds & Miscellaneous ProvisionScheme read along with Para 18 of the Employees’ PensionScheme. This Form also requires indicating the nominee andfamily details. Besides that it is also advisable to get a declarationin the format as given hereinafter containing declaration by thenewly appointed employee since a coverable employee is to beenrolled as member of the Provident Fund Scheme from thevery first day of his joining and this provision has also beenupheld by the Bombay High Court.1