Opting Out of PF: What Steps Should Employees Take If Their Salary Exceeds 6500?

Procedure for Opting Out of PF Participation

If any employee doesn't want to participate in PF and his/her basic salary is above 6500, what is the procedure for the same? Please explain both conditions: for a newly joined employee who has not registered under PF and for one who was previously registered under PF. Are there any forms that need to be filled out?

Regards

Dear Parul, you can fill out FORM-11 in this case. Thanks for your reply. Can you share a copy of Form 11? As per my view, Form 11 is kept with the employer and does not have to be submitted anywhere else. Am I correct?

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Yes, you are correct. I have also attached it. Please see it.

Your form is for adding in EPF. What is the form for an employee who is not willing to pay EPF? Kindly send it; it will be very useful.

Thanks a lot.

Could you please provide the reference to the Act where it is clearly mentioned that if the basic salary is more than 6500, employees will be exempted from PF contribution?

Thank you.
Regards

No, first, the employee has to resign. Afterward, the formalities of the withdrawal of EPF accumulation should be started, and then he will rejoin as a new employee.

Regards,
Sumit

I want to know if we can do anything when the company is providing PF benefits only to half of its staff.

Regards,
Tamanna Mehta

Hi Tamanna Mehta,

Greetings for the day.

First of all, it may be noted that EPF/EPS is Mandatory

The benefit of the same should be extended to all the staff employed. Secondly, the deduction of EPF should be done on basic salary + DA/VDA + food conc. if any. Thirdly, for employees whose basic salary is less than Rs. 6500/-, the membership should be compulsory. Basic above Rs. 6500/- can be treated as an excluded member, but it solely depends on the employer either to deduct EPF or exclude the same. If you want to ensure that the deduction of EPF is extended to all employees, you must hire employees based on CTC rather than gross.

Thanks & regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons]

Please refer to EPFO for accurate details and the forms you need.