If an employee is drawing more than ₹6500/- as wages at the time of joining and does not want to be a member of PF, is it required to take any application from the employee requesting for exemption?
If an employee is drawing more than Rs. 6500/-, then PF deduction is exempted. However, once the deduction begins in the company for employees drawing Rs. 6500/- and above, it becomes mandatory. Subsequently, for new joiners, even if they are earning more than 6.5k, you have to deduct PF. No formal application from employees is necessary.
Once an employee becomes a member under the EPF & MP Act, 1952, his membership has to be continued irrespective of his salary in the new organization until he withdraws his accumulations as provided under para 69 of the EPF Scheme, 1952. There is no option to escape from the membership. However, the employer has the obligation for contribution on a salary ceiling of ₹6,500 only.
Regards
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