Is It Possible to Opt Out of ESI and PF Deductions if Employees Refuse Benefits?

Dear all,

Is PF & ESI mandatory for all employees or not? In my organization, some employees are not ready to avail of these benefits. They have stated, "We will provide a letter stating that we do not want ESI & PF." Is it possible to not deduct salary in these cases?

Please reply.

Thank you.

As per the PF Act, all employees (including casual, part-time, daily wages, etc.) other than excluded employees (drawing more than Rs. 6500/- p.m. Basic + D.A.) are required to be enrolled as members of the Fund. It is clear that it is compulsory for all employees and not optional.

ESI is also mandatory for all employees other than excluded employees.

SK