Sandeep Gupta Sagar
Epf & Esic Consultant
Hr Executive.
+1 Other

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I am a student pursuing HR and I have a few queries regarding the PF policy rules. The current ceiling limit is 15,000. I have two questions pertaining to this.
1) For employees earning below Rs 15,000, is it mandatory to provide PF? If so, at what rate should the employee and employer contribute?
2) For employees earning above Rs 15,000, what is the contribution rate of the employer and employee? Is there an opt out option for such employees if they chose not to go for PF?
This is a part of my college assignment. Kindly let me know the answers to the above queries. Your help is much appreciated!
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Answer 1, depending upon the type of industry the rate of contribution may vary either 10% or 12%
10 % for beedi, jute, brick, coir , guar gum industries or any sick unit. rest all 12%.
Answer 2: at the time of joining if salary above 15000 member can opt out of pf scheme directly if he was not employed previously, but if he was employed somewhere and was a pf member, then he cannot opt out, he will be a pf member in his new job and deductions as per act.
Hi , How company can find that he/she was member of pf . That person may tell a lie to opt out from Pf . Thanks and regards, Simmi HR EXECUTIVE
Please obtain Form No 11 from the new entrants in which he has to declare his previous P.F. details. If he declares he has no P.F.Account then you can go ahead with that.
Is form 11 for PF option out still valid, if not, is PF deduction mandate for all employees in the organisation or there is a limit, kindly advise
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