Can employee opt out of having their PF deducted from their salary?

Gaurang S
Hi, We have come across a few employees who don't wish to have their salary deducted despite being eligible for the same. So my question is, "Can employees who have basic salary below the PF limit of Rs. 6,500/- opt out of having their PF deducted from their salary?"
If this is possible, what is the procedure to get this done?
Awaiting your prompt answers.
Thanks,
Gaurang S
HEGELER
YES.
We should continue to deduct contribution to the portion of 6500/- and not to the above.This is mandatory.
Warm Regards,
T.Muralidaran
amit_goyal_2002
Hi Gaurang,
No, its not possible in any case. they must contribute to PF if their basic salary is below Rs 6500/-. Its mandatory. In case they are already member of PF and their Basic salary crosses the limit of Rs 6500/-, in that case too they have to be continue to be the member of PF. But if they are already member of PF and joins new organisation, in that case they may opt out of PF only if their basic salary is above Rs. 6500 for which they have to give the undertaking to the new employer that they dont wish to be a member of PF. But this too depends on the company policies because generally companies do not allow such practices.
Amit Goyal
abbasiti
An employee once enrolled to EPF cannot be opted out till the stoppage of service. If he crossed the ceiling salary, contribution upto ceiling limit is statutory.
Abbas.P.S
abbasiti
I shall quote the cocerned provision from EPF. (Kindly go through the web site : EPFO <link updated to site home> )
Exemptions under the Schemes</SPAN>
Provident Fund
  • An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.</SPAN>
  • Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.
  • </SPAN>The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.
Abbas.P.S
Nikita Tank88
Respected Seniors,
Is it possible to opt out PF scheme for those who have voluntarily joined the scheme (with basic pay more than Rs.15k) ? As they don't want to withdraw the money but want to stop the contribution.
Please advise.
Thanks,
Nikita
sahu9439
Dear All,
Is there any option to not joining in PF for any employee who has recently joined the organisation with higher salary then the PF slab and he also not a member of PF in his immediate previous company, but he was a member in PF Scheme in his carrier starting stage and already withdrawn all his PF benefits.
Santosh
kapoorthakur
any format for undertaking if i dont wish to have pf deduction in my new organizaton
himanshu-shroff
Respected Seniors,
My question is do we need to comply with the new wages code from 1st April 2021 only or applicability of the same is will be notified by govt. later on, as rules are still pending?
umakanthan53
Dear Himanshu,
All the new Labor Codes can be enforced only after the Central Govt fixes the date by means of notification in this regard under each Code.
Since the State Rules are not yet framed by many State Governments, the notifications are yet to be issued by the Centre.
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