Can We Exempt Employee For Provident Fund?

Hello to all friends,

Can we exempt our employees from the provident fund even if the organization is covered under the Provident Fund Act? In some cases, some employees do not want to contribute to the PF. Is this legally acceptable? If yes, please tell me which form is necessary to fill for the same.

Regards,
Rahul

If the basic pay of the employee is more than Rs. 6500 a month, the employee may be exempted from the deduction of PF. In such cases, to safeguard yourself during any inspection, please get Form 11 signed from the employee and also take a declaration stating his salary break-ups and his/her consent for not availing the PF benefit.

Please also make sure that the basic pay should be at least 50% of the Gross pay.

With best regards,

Umesh Chaudhary
(welcomeumesh@yahoo.com)

To nominate any employer for PF, you can get the Form 2 (revised) in duplicate filled by the employee and submit the same at the local PF office. The form can be downloaded from epfindia.nic.in.

Regards,
Umesh

An employee, if drawing (Basic+DA) salary more than Rs. 6500, can be legally exempted from PF deduction by obtaining the employee's signature and their willingness to not deduct PF in Form 11. However, an employee drawing a salary below Rs. 6500 cannot be exempted from PF deduction in any way if the establishment is covered under PF rules and regulations.