Understanding PF Exemption: When Are Employers Free from PF Liability for High Earners?

Dear Seniors, I would require your help with the following query regarding PF exemption for the Principal employer.

Query 1: In which scenario/case is a contract or a full-time employee working in a plant exempted from PF? For instance, if the basic salary is above Rs 6500/-, then no PF is applicable, and the Principal employer is exempted from PF liability, subject to Form 11 submission.

Query 2: If this exemption is possible, then which forms are required to be filled as per statutory requirements?

With Regards,
Virag Shah
[Phone Number Removed For Privacy Reasons]

Kindly send the detailed rules for employees with a basic salary above ₹6500 who are not covered under the Provident Fund. Also, please send the respective form (Form 11).

Regards

Understanding PF Capping and Exemption

It is very simple that, as per the law of PF, the capping is ₹6,500/-. On top of this, it is at your discretion to deduct or not, but you must have Form 11 duly signed by the employee declaring that they are not a member or not interested in any membership of PF.

Even though management wants to deduct the PF, then whatever their basic salary is, you may deduct ₹785/-, which is 12% of ₹6,500/- and deposit it to the department. Once you start depositing it, you have to continue until their job in your company.

If he was a member of the previous company, he is not exempt from PF contribution. If he withdraws the PF amount from the last company, then he is exempt from PF contribution. If he is a fresher for PF registration and the (Basic + DA) exceeds more than 6500/-, then that employee has the option.