Provident Fund Dilemma: How Do High Earners Opt Out of Deductions?

Provident Fund Deduction for High Salary Employees

If the basic salary of the employee is more than $6,500 and he doesn't want to deduct PF or avail Provident Fund facility, is there a form for undertaking or what is the procedure? Please help.

Regards,
Mathu

PF exemption can be availed once Basic + DA is more than Rs. 6500. At that time, we should obtain a NON PF DECLARATION FORM from the employee for acceptance. If an employee would like to avail PF benefits, he/she can do so. In case of further doubts, please let me know.

Thanks,
Pons

If an employee's Basic + DA is more than Rs. 6500, and both the employee and employer do not wish to deduct PF, they can opt out. The only way to do this is by filling out Form No. 11 and informing the PF office accordingly.

With Regards,
Vineet Deshmukh

Dear Pons & Vineet, Thank you for your quick response. I require a "Declaration Form" from the employee's side or any other relevant form that I can use officially.

Regards, Mathu

As per your requirement, please find the attachment.

With Regards,
Vineet Deshmukh

But keep in mind, if anyone is already a member of the PF scheme, in that case, Rs. 6500 cannot be avoided.

Regards

I endorse the views of Mr. Yadav. In my view, if a person had EPF membership in their earlier employment before joining a new establishment and has not withdrawn the benefits, then the new employer is statutorily bound to continue their membership irrespective of the salary limit in the new establishment. There is no option for the employee or employer to not continue the membership in such a case.

Regards,
A K Chandok
RPFC (Retd.)

My question is, as the minimum wage in U.P. is ₹4975 (basic ₹2600 and D.A. ₹2375), do we have to pay P.F. on ₹4975 or ₹2600? Please confirm.