Recruiting a High-Profile Candidate: Should We Skip PF Deductions to Protect Their Pay?

We are trying to recruit a high-profile individual for our company. We have the statutory element PF as a deduction in our salary structure for every employee. To protect their take-home pay, if we do not deduct PF for this particular hire, what would be the implication?

Thanks in advance!

Regards,
Praneeth

You can do that only if you take care of two factors:

1. Basic pay + DA of that particular person should be greater than 6500.
2. He/She shouldn't transfer the PF account from the previous company but should withdraw and close it. At the time of joining your organization, the individual should be willing to opt out of the EPF scheme.

Regards

[QUOTE=teamgrouphr;2095253]

Dear Praneeth,

Greetings! You can do that only if you take care of two factors:

1. Basic + DA of that particular person should be greater than 6500.

2. He/She doesn't transfer the PF account from the previous company but withdraws and closes it. At the time of joining your organization, they should be willing to opt out of the EPF scheme.

Sir, I agree with your reply but for one correction. If the salary is more than Rs. 6500/- and the person is not already a member of the PF fund, there is no need to get willingness or otherwise. Even if the employee is willing to contribute, the employer is under no obligation to contribute and hence cannot become a member of PF. In the case of a salary more than Rs. 6500/- (Basic + DA), both the employer and employee should be willing to contribute.

Regards,
Pradheep