Navigating PF Contributions in Construction: Can Employees Opt Out if Salary Fluctuates?

PF Contribution in the Construction Industry

My query is related to PF contribution in the construction industry. PF contribution is compulsory if the Basic + DA salary is less than 15,000. If the Basic + DA salary is more than 15,000, can the employee request their employer not to contribute by filling out Form 11 for exemption?

If the said employee opts not to contribute to PF because their Basic + DA salary is defined as more than 15,000, what happens if their earned salary is less than 15,000 in a month?

Kindly advise.

Thanks & Regards,
Pradeep

You're right that the ceiling rose to Rs. 15K. If the desired employee is a member of the EPF/EPS scheme and continues in the job, he remains a member until he quits. But if he was not a member earlier, he can opt for the same. The form is enclosed for your reference.

Thanks & Regards,
Sumit Kumar Saxena

My query is still open. For a new employee who has either fully withdrawn the PF or has never been a member of PF, whose Basic + DA salary is defined as more than 15,000, what happens if their earned salary is less than 15,000 in a month?

Is he liable to contribute to PF if his earned salary is less than 15,000?

Kindly guide.

Thanks & Regards,
Pradeep B N

Excluded Employee Under Para 2 Clause (f)

1. An employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund.

2. An employee whose pay, at the time he is otherwise entitled to become a member of the Fund, exceeds [Fifteen Thousand rupees] per month (in case the employee was not a member earlier).

Please note: Do not refer to it as earned salary. As per Para-2 (f), "Pay" includes basic wages with dearness allowance, retaining allowance (if any), and the cash value of food concessions admissible thereon.

Clarification on PF Contributions

Kindly provide clarification on PF contributions. Any employee whose Basic + DA is defined as more than 15,000 can request an exemption by filling out Form 11. If the said employee's salary (Basic + DA) is less than 15,000, does it attract PF contributions?

Kindly reply.

Thanks & Regards,
Pradeep

Yes, more than 15,000 have the exemption, and below 15,000 is mandatory.