Understanding PF Deductions: Can Employees Opt In After a Year of Service?

Dear All,

I am a new member of Citehr. I have some doubts regarding PF. After reading previous articles/replies posted on this website, my query remains unsolved. My question is, are employees earning up to 6500 covered under PF, and is deduction compulsory? If a person with a salary exceeding 6500, for example, 15000, did not opt for PF when joining but now, after completing one year of service, wishes to start PF deduction, is it possible? If so, will the percentage of deduction be the same? As far as my knowledge goes, PF deduction, once initiated, cannot be discontinued. Please correct me if I am wrong.

Please guide me. I request you to respond only to these specific queries.

Regards,
Chaitali
Surat, Gujarat

Dear,

You are absolutely right that once the PF deduction is started, it can't be stopped until a person leaves the company and applies for the withdrawal after 2 months, or they can choose to continue it. Yes, a person who had not opted for PF at the time of joining can opt for PF anytime during their job. Please check the limit; I think they have now been revised.

Regards,
Eafil

Thank you very much.

Do you have any other inputs on the same topic? I also wanted to ask, if PF deduction could be started at any time during the service period, then is there a specific process to follow? Is there a form that needs to be filled out or any other requirements?

I am looking forward to your reply.

Best regards,
Chaitali
Surat, Gujarat.

In that case, employers are not bound to pay their contribution. An employee can pay up to 12% or even 20%, but only 12% is tax-free.