Can Employees Opt Out of a New PF Account if Their Salary Exceeds Rs. 6500? Urgent Help Needed

I need help regarding the PF account number not being required by the employees. If an employee has a basic salary of more than Rs. 6500 and does not wish to have a new PF account number in the organization, is there a form or notification available for this purpose?

Kindly share as this is urgent.

Regards,
Sandhya

As per the PF Act, every employee is entitled to PF for a minimum PF wage of INR 6,500. Please explain to the employee that if he is not willing to contribute from his basic salary, the minimum contribution will still be applicable. Or you may have to break the law...

Thank you, dear Raj, I strongly agree that if anyone has the basic amount up to the ceiling, he/she must contribute the PF part from their salary as per the law. However, is it true that an employer cannot force a new employee to have a new PF account number in a new organization? Kindly advise on what records should be maintained for such a situation.

Regards

Please clarify if the employee wants to continue with the old PF account number. If so, it will not be possible, as the PF account number will differ based on the employer code and location. However, the employee can transfer the account. You will need to fill out FORM 13 (Transfer of account) but will receive a new number. Please closely follow the process of transfer at the PF office. Alternatively, I believe we now have the facility to transfer PF accounts from one employer to another online.

Since the employee has already closed his old PF account number and does not want to have a PF account, he is not willing to have a new PF account number in our company.

Please visit the following link: [Employees Provident Fund - FAQs](http://www.excelconsultancyservices.co.in/EmployeesProvidentFund/faqs.htm) where the excluded employees are defined as below:

What is meant by "excluded employee"?

"Excluded employee" means:

- An employee who, having been a member of the Fund, has withdrawn the full amount of his contribution in the Fund (a) on retirement from service after attaining the age of 55 years or (b) before migration from India for permanent settlement abroad; or for taking employment abroad.
- An employee whose pay at the time he is otherwise entitled to become a member of the Fund exceeds Rs. 6500.00 per month.
- A person who, according to the Certified Standing Orders, is an apprentice or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government. {Para 2(f)}

Here it is clearly mentioned that at the time he is entitled to become a member, i.e., at the time of joining the organization, if he is drawing a basic salary of more than Rs. 6,500, then obviously he has the option to join the scheme or not.

In this case, you can take a declaration to that extent from the employee.

Regards,
Ramakant