Can a Trainee Opt Out of PF with Form-11? Seeking Advice on Employee's Request

One of our trainee employees has completed his training and now wants to become a permanent employee. He doesn't want PF to be deducted. His basic pay would be below Rs. 6500/-.

Form-11 and PF Exemption

In this case, is keeping a Form-11 filled and signed by the employee enough to keep the employee out of PF? Please advise.

Thanks,

Sajeev

No, if the employee is receiving a salary below Rs. 6500, he must be enrolled in the Provident Fund (PF) scheme. His PF contribution needs to be deducted. There is no other option.

I would suggest you go to this post first: https://www.citehr.com/371318-stop-pf-deduction.html

Thank you, Mr. Suresh and Mr. Anil. In our case, the employee is completely new, and this is his first job. Is it legal to exempt him from PF deduction? If so, what is the procedure?

Thanks and regards,
Sajeev

Mr. Sanjeev, the answer to your question can be found there. I have mentioned all the possible things. As EPF has never been deducted for this employee, you can ask for this by declaration under the applicable rule.

Steps to Exclude from PF Deduction

For more details and complete rules, I would suggest you visit the official website and refer to the earlier post where we discussed this extensively.

I encourage you to read this yourself, which will provide you with a better understanding and clarify the concept.

You mentioned that the employee is a trainee and his salary is below Rs. 6500. Why was EPF not deducted earlier? Since he has been on the job continuously, he should be eligible for EPF deduction. As far as Form 11 is concerned, it is necessary for those who are exempted from EPF, and the salary ceiling should be above Rs. 6500. Below that, EPF deduction is a must.

Thanks & regards,

Sumit Kumar Saxena