Hi, I have a total of 4+ years of experience. For the first 1.8 years, I worked in a "d" company, and I have the salary statements and PF account as well. Later, I got a job on a contract basis with an "x" company and started working for "y" company through the "x" company. During this period, I did not opt for the PF, and there were no PF deductions. After 2 years, I became permanent in the "x" company and continued working for the same "y" company.
When I became permanent in the "x" company, I opted for the PF, and deductions were made and credited accordingly for the next 5 months. Now, I have received an offer from a new "m" company. Even though I have PF statements for the last 5 months, the new company is asking why there is no PF for the contractual period. They are not listening to my explanation. Can someone please help me?
From India, Hyderabad
Acknowledge(0)
Amend(0)
When I became permanent in the "x" company, I opted for the PF, and deductions were made and credited accordingly for the next 5 months. Now, I have received an offer from a new "m" company. Even though I have PF statements for the last 5 months, the new company is asking why there is no PF for the contractual period. They are not listening to my explanation. Can someone please help me?
From India, Hyderabad
Acknowledge(0)Amend(0)
Inform the M company that since you were a consultant with X company for 2 years and had opted not to have PF deductions done, no entries were made. After converting to a permanent payroll, you opted for PF, and deductions for 5 months are now shown. Therefore, company M cannot request details of the non-existence of PF during the contract tenure.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Much appreciated for your response. But he is saying that even though the role is contractual, the PF deduction is mandatory. The doubt I am having is, as far as I know, can we opt out of the PF during the contractual period, right? Or are there any latest new rules implemented nowadays? Can someone please clarify this for me?
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
It is not right. When a person works on a contract or as a consultant, we have the right to opt out of PF. Most companies employing consultants clearly provide that information during the onboarding process, stating that they will not pay PF. Once the duration is completed, they must release you from the organization. It is not advisable to include PF.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Everything PF Related.pdf