Can a New Employee Earning Rs. 11,000 Opt Out of PF Contributions?

Hi all,

I would like to inquire if there is a provision in PF contributions that would allow us to exempt a new employee whose salary is Rs. 11,000 (Basic+DA). The employee is not interested in contributing to PF.

Regards,

Prasad

An employee whose salary (basic + DA) at the time of joining is exempted from EPF. However, if he had earlier been a member and had not withdrawn the PF accumulations, then he has to continue with the schemes.

Regards,
Madhu.T.K

Dear Mr. Madhu T.K.,

Thank you. He has withdrawn the previous PF amount with his past employer. Now that he has joined us, he wishes to remain on the payroll for tax exemption but is not interested in making PF contributions. Is this possible?

Regards,
Prasad

Dear Prasad,

His basic DA is more than 6500, and he falls under the definition of an exempted employee. If he has withdrawn PF earlier, there is no need to make him a member again.

Regards,
JS Malik

Could you please inform me under which section of the PF Act it is stated that the PF ceiling amount is ₹6,500? Additionally, does it depend on the company's discretion whether to deduct an employee's PF contribution if their salary exceeds ₹6,500?

Thank you.