Can I Stop My PF Deduction After a Salary Increase to Rs 10,000? Seeking Advice!

Hi there, this is Saddy. I was previously getting Rs 6000/- per month, and my PF deduction was 720. Now, after my increment, I'm getting Rs 10000/-, and I don't want my PF to be deducted anymore. Can I do the same or not?

Thanks

Dear Saddy,

You cannot do this. Once a person becomes a member of the EPF Organization, he will continue to be a member of the organization. If somebody joins at Rs. 10,000, then it is at the discretion of the management as well as the employee to become a member of the organization. However, in your case, you strictly cannot do this.

Dear Saddy,

Mr. Mukesh Azad correctly pointed out that I was wondering all these years why people, when they move on to a higher salary, always want to come out from EPF. It is really a wonderful Social Security Scheme. It is a good idea for saving as well if you opt for VPF.

Dear young fellows, never think of coming out from EPF. The small amount saved since your first employment helps a lot at the time of your retirement.

S. Sethupathy, Excellent HR Services, Erode.

Dear Sir,

Could I please request the form for the declaration of an employee who chooses not to opt for the PF if their salary exceeds Rs. 6500/- basic? Some of our employees initially opted for the exemption during the registration of PF. However, after a one-year period, they decided to opt for the scheme. Currently, we need to present the exempted employees' declaration forms to the PF authorities during inspection.

Thanks & Regards,
Sujsri

Dear Sujsri, use this Form 11.

Regards,
Sethu

Dear Mr. Sethu,

Thank you for the forms attached. In this form, there is no mention of opting for the PF. We need the form to provide to employees to choose whether they want to opt for PF or not. This is for cases where their Basic + DA exceeds Rs. 6500 per month. This would be for voluntary contributions, so that in the event of an inspection by PF authorities, we can show which employees have opted for exemption from PF upon joining.

Thanks & Regards,
Sujsri

Dear Sujsri,

You have to use Form 11 for the excluded employees. Please note that once a member becomes a member, they will remain a member forever until they are working in that particular industry, even if their salary exceeds 6.5K. After resignation, if they join another industry where EPF is applicable, they will be automatically coverable. This is provided they have already withdrawn their EPF and EPS contributions, and their new basic salary exceeds 6500. Only then will they be considered an excluded employee.

I have enclosed an interesting judgment on excluded employees and request fellow members to comment on this.

Hope this is clear.

S. Sethupathy, Erode.

If a person, while joining, doesn't know their EPF membership details (EPF No.) and has a basic salary of more than ₹6,500/-, will they be exempted from PF or not?

Dear Seniors,

Could anybody confirm whether the PF upper limit has been revised or if it still remains at 15000 for the deduction of PF? Is PF deduction mandatory for the Employer?

Regards,
Aishwarya Gupta