PF exemption - employee not willing to being member of PF - CiteHR
Saswatabanerjee
Partner - Risk Management
Anbarasu R
Junior Executive In Hr
+1 Other

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Dear Seniors,
Few of our employee not willing to being member of PF who are getting more Rs.15000. They would not like to contribute for PF.
Question 1 : Can we exclude employees from PF, if their salary is more than Rs.15000?
Question 2 : if so, can we exclude the existing employees from PF?
Question 3 : as like, can we exclude new employee from PF, if they are willing?
Question 4 : What is the procedure to do so?
Question 5 : any Act discussing about PF exempted employees?
Please share your valuable experience.
Thanks,
Anbarasu.R

Hi Anbarasu,
As per my opinion, Please share an advantages of EPF with all the employee's. EPF have lots of long term advantages including tax benefits as well.
Ans 1) If their Salary head Basic + TA + DA is more than 15000Rs then you can ask your employees for non contribution with PF.
Ans 2) No, Once employee enrolled with the EPF scheme cant be exclude.
Ans 3) Yes, at the time of Joining if employee's BASIC + DA+TA is higher than 15000Rs than option is available with employee for exemption from EPF.
Ans 4) File form no 11 for excluded employee's and maintain the database, at the time of PF audit from Government produce all Form 11.
Ans 5) No supportive acts available for excluded employee's.

The exemption ruled is very clear.
A new employee whose starting salary is more than ₹15,000 (basic and DA) and does nothing to have any existing PF account at the time of joining, will have the option of being exempt from PF. In all other cases, he has to be a member of PF and contribute to it.
Existing employees who already have a PF account can not stop their PF contribution.
If any employee was exempt earlier (₹6500 rule) and whose salary on the date of change (August 2014) had a basic and da of less than 15000 again is covered and can not claim exemption even if his salary subsequently goes beyond ₹15000.

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