Employee Opts Out Of EPF - Employer Contribution To Be Paid Out?

teekayain
I wanted to know from HR experts whether an employee opt out of EPF Scheme and demand that the Employer's Contribution be paid to him along with his salary, thus his take home salary increases. Does singing of Form 11 by that employee stating that they have never been in PF and that he is voluntarily opting out of the scheme serve this purpose.
Thanks and regards
saswatabanerjee
If he fulfills the condition in form 11 - that is he has starting salary of over 6500 basic + da and he does not have any existing pf account! he can opt out of pf.
However, he can not ask the company to pay him the employers contribution to him
saswatabanerjee
In fact adding the employers contribution to salary is an offence under PF act.
The act provides that the employer can not reduce salary for compliance with the act. By adding the employers contribution to salary, the company would be confirming that they had earlier reduced salary to the extent of PF, which is specifically disallowed
mubeenj123
One should know that Organization is covered under PF Act subject to certain conditions. Once this is fulfilled, it is obligatory on the part of employer to cover its employees for PF contribution. If however, the emoluments of the employee exceeds the amount prescribed under the Act, then he need not be covered. Further, if all employees are covered under PF scheme, then it is not open to the employee to opt out of the scheme.
Nathia
If your organization is covered under EPF Scheme and your wages are below the ceiling for coverage prescribed in the EPF Scheme 1952, you CANNOT opt out of the scheme.
dnehra
No, You can not opt out if your company registered under EPF. If your company have less than 20 employee, than you may opt out from the PF.
aabhi
Hi,
In form 11, it asks for earlier membership details, there is no column to declare that one has withdrawn the previous account and so he is an exempted employee. Need help to understand the same.
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