Can an Employee Opt Out of PF Facility on a 7000 Salary? Seeking Urgent Guidance

Hello friends and seniors, we are providing PF facility to all our staff members. However, one of the new joiners in our organization does not want the PF facility. The gross salary of that employee is 7,000/-. Is it allowed or not? If yes, then what is the procedure to opt out?

If no, is it the right approach to make the PF facility compulsory for the employee?

I need your guidance urgently.

Regards,
Madhura

In my view, if his Basic and DA is up to Rs. 6500/-, he has no choice but to enroll for PF facility as per EPF Act.

Regards,

SK

You have to educate him about the benefits of the EPF & Pension scheme as a part of welfare and retention. Some companies do not want to offer this scheme to employees drawing a salary above 6500/-.

Regards, Sathya

Dear Madhura,

If the basic salary is less than 6500/-, it is mandatory for the employee to be enrolled in the Provident Fund (PF) scheme. Please make sure to inform the employee about the PF benefits.

Regards,
Sheela

Since he is a low-paid employee, he wants more in-hand salary. His basic pay may be reduced, and other allowances except DA may be enhanced. By doing this, he will have to contribute less amount towards EPF. He should be informed about the benefits of EPF.

Regards,
SK