Opting Out of EPF Deductions: Can You Avoid It Without Quitting Your Job?

Respected Seniors,

Greetings of the day. If an employee has been working in a Pvt. Ltd. company since March 2007 and currently has a CTC of 10,500.00 per month, and he doesn't want EPF to be deducted from his salary, how can he opt out of EPF deduction without leaving his current job? Suggestions, please...

Regards

Dear Mr. Sanjay, with reference to your query, it is not possible to exempt an employee from PF deductions under the provisions of the EPF Act, 1952 Rules. An employee can only be exempted at the time of inception if their wages exceed the wage limit of Rs. 6,500 per month as per section 43. Additionally, the employee must be covered by a PF trust framed by the employer under section 17(1) following the guidelines of RPFO/CPEO.

Regards,
V R RAO PULIPAKA