Can Employees with Over 6500 Basic Pay Opt Out of PF Contributions, or Is It Mandatory?

An employee with over 6500 basic pay can choose to opt-out of PF contributions, or is it mandatory for the employer to implement the PF scheme?

If he was an earlier member of PF, then you have to continue. If he is a new employee and his basic is over 6500, then the employer's contribution is not compulsory.

Regards,
Manjunath S.

Opting Out of PF Contributions

If an employee whose salary is higher than ₹6500 has opted for PF upon joining and after 3 to 4 months wants to opt out of PF, is it possible to do so? If yes, what is the procedure? Which forms need to be filled?

If it's not possible in the middle of the financial year, can the employee opt out at the beginning of the new financial year? If yes, what is the procedure? Which forms are to be filled?

Looking forward to detailed guidance on this.

Thanks,
Khyati