Can Employees Opt Out of PF After Withdrawal? Seeking Clarity on Form 11 Submission

Dear Sir, I have some queries related to the PF opt-out option and hope you will assist me with the same.

PF Membership and Opt-Out Queries

1) If an employee was a member of PF in their last company and withdrew their PF amount, can they opt out of PF? As per my understanding, if someone was already a member of PF, they cannot opt out. (Please correct me if I am mistaken).

2) Do I need to submit Form 11 at the PF office, or should I just maintain my records?

3) We have approximately 37 employees in our company. Is it possible for some employees to opt out while others cannot?

Your help on these matters would be greatly appreciated.

Hi Mr. Sapna,

For your first query:
My answer is yes, if an employee withdraws his/her whole PF amount from previous employment, he/she may opt out of PF.

For your second query:
Sorry, I didn't know the answer.

For your third query:
No, you cannot do that unless the first scenario happens (Your First Query-Case).

With Regards,
Mr. Thumbs Up

Dear Sir, A few days ago, I applied for PF Voluntary coverage for our establishment. We attached our salary structure with that application.

Example Salary Structure

Name | Gross Salary | Basic | DA | HRA | TA | Gross Earn | PF Deduction | ESI Deduction | Net Wages
Xxxxxx | 10000 | 5000 | 1000 | 2000 | 2000 | 10000 | 720 | 175 | 9105

We deduct the PF contribution for basic wages and DA only. However, the PF enforcement officer advised us to deduct the PF contribution for gross earnings (except HRA) and not just take Basic & DA. As per the PF Act, should we deduct the amount for the whole salary? Is this true? Most companies pay only basic wages and DA. Please advise me, senior. It will help me.

Hi Mr. Kalyanasundaram,

As per the PF & MP Act-1952, we have to deduct PF contributions from BASIC + DA only. (The above calculation is correct).

With Regards,

Mr. Thumbs Up

Ok Sapna, let's go through it point by point.

1. If an employee has withdrawn his/her EPF and EPS from the EPFO, then he/she will be treated as a new member of the EPFO if he/she joins again. Opting out is not an option for a person whose salary is less than 15,000 (salary on which you deduct EPF, it may be Basic + DA or Gross, as per company policy). However, if the salary is more than 15,000, then it is the option of the employer and the employee to opt for EPF or not.

2. Form No. 11 (R) is mandatory as per EPFO, but you do not have to submit it to the EPFO. All you have to do is go to https://employerclaims.epfoservices.in/ and go to PREVIOUS EMPLOYMENT to fill in the previous employment details of employees and get it digitally signed.

3. Once again, it is not an option for those earning less than 15,000.

Hope I have everything correct.

Stay cool.

Regards, Atomz

All employees who have withdrawn PF cannot opt out of PF in the next Co even if their salary is above Rs15000/- per month. The withdrawal should be due to retirement after the age of 55 years or for migration from India. Withdrawal after resignation or termination is not a ground for opting out. Read the definition of 'excluded employee' in the EPF scheme.