New Workers Want to Skip PF Deductions: How Should HR Handle This Request?

I am working in a company in the HR department. Our company operates under the contract labor law. Recently, some new workers have joined our company. This is their first time joining. The new worker does not want to have the PF contribution (12%) deducted from their basic salary. Currently, their basic salary is above 6500 Rs.

Please advise me on this matter.

Regards,
Ravindra Sharma

As per the PF Act, a person who has never been a member of PF and is drawing wages/salary of more than ₹6,500 per month can be excluded from making contributions towards PF. In such cases, Form No. 11 under the PF Act should be obtained from such an employee.

Regards,
Rajendra Bhavsar
Manager (P&A)
Afcons Infrastructure Ltd., CMRL Project,
Chennai
[Phone Number Removed For Privacy Reasons]

Hi Ravindra, as mentioned by Mr. Rajendra, there's some flexibility for the workers who are not willing to contribute to PF, and you can also opt for the same.

Please obtain Form No. 11 with his declaration for opting out of PF and maintain the same with you only. It should be produced on demand to PF authorities.

One silly question: If an employee, who is excluded from PF contribution, expects the company’s contribution to PF to be added to his salary (since this is a saving for the company), is it justified? He knows that he cannot claim it lawfully, but if he wants to argue…

Thank you for your help, Rajendra sir. Which attached form is correct for Form 11? What is the worker declaration in any form or a simple application?

Thank you and regards,

Changes in PF Contribution Requirements

Firstly, Form 11 has been abolished by the PF authority. Secondly, if their basic salary is more than ₹6,500, then you do not need to deduct their PF. This change will not only fulfill their wish but also allow the company to save 13.61% from their contribution.

Regards,
Kamal Datta

While accepting Form 11, kindly ensure that he/she has never been a member of any Provident Fund and/or Family Pension Scheme. If he/she has, then Form 11 cannot be considered.

I am confused about this matter. Can you please tell me in detail about Form 11 and whether attaching the form is the right thing to do? Please help me.

New Employee PF Account Issue

This is the first job for the new employees. Previously, they did not have a PF account, and they do not want to keep one.

Please let me know if you need any further assistance.

Regards.