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Hi everyone, I am working as an HR in a start-up company, and we have recently decided to have PF Deductions for our employees. While doing the initial hiring, we told them that they could opt out of PF deductions, but now I have come to know that for the ones whose PF was being deducted, it is mandatory for them to get it deducted. My question is, is it really necessary for them to get their PF deducted if they do not wish to?
Also, if an employee has a basic salary of less than 15000, then they can opt out of the PF scheme {If they were not getting it deducted}

From India, Kolkata

There is no PF opting out. You can not exclude an existing member of PF even if his salary (PF qualifying salary or basic salary) at the time of hid joining your establishment is more than Rs 15000. Therefore, if an employee opts out while joining and in future it is identified that he was a PF member in his previous organisation, you will be liable to pay his contributions (both his share as well as employer's share) with interest and damages. Therefore, please do not do it. If the employee is a fresher, or his he declares in form 11 that he was not a member of EPF in the past, then only you can exclude him. That also, ONLY if his basic salary is not more than Rs 15000.

NOWAY, an employee whose basic salary is less than Rs 15000 can be excluded from EPF.

At the time of joining, along with other joining forms, please collect the form 11 which is attached.

From India, Kannur
Attached Files (Download Requires Membership)
File Type: pdf Form 11- Nov 2021.pdf (558.0 KB, 0 views)

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