How Can Employees Opt Out of PF Deductions? Understanding the Process and Forms Needed

Dear All,

My current company is covered under the EPF Act, but some of our employees don't want to have the PF deducted anymore (they all are above the limit of ₹6500). What would be the required steps for this procedure? Which form do we need to fill for this? Is it Form 11 or something else?

Regards

Once the employees are covered under the PF, there is no provision to stop or cancel the PF contribution. The only thing you can do is restrict it to ₹6,500.

The only way you can stop paying the PF for those employees from next month is if a PF inspection happens to companies once in a while (at least once every 5 years). During that time, they will ask you to submit the payroll data. They will then match the payroll data with the PF contribution part. If there is any difference, they will send a letter stating that there is a variance of XYZ amount, and the company will have to pay both the employer and employee contributions along with the interest (the penalty interest rate with EPFO is too high).

Therefore, I suggest talking to the individuals and convincing them (rather educating them) about the benefits of having PF deducted. Under no circumstances should you try to avoid PF deduction. Take a fatherly step to make them understand, be strict, and deduct. After all, they are going to reap the benefits.

Thank you.