Can Employees Earning Over ₹15,000 Choose to Opt Out of the PF Scheme? Let's Discuss

PF Ceiling and Employee Membership

As we know, the PF ceiling is a basic ₹15,000/-. Some employees have salaries beyond ₹15,000/-, i.e., ₹16,000 or ₹17,000. Some employees do not want to become members of the PF scheme, while others do. Can an inspector question why all employees earning more than ₹15,000 are not covered under the PF scheme?

Opting Out of the PF Scheme

Beyond ₹15,000, employees can opt out of the scheme if they are not PF members or have withdrawn their PF amount and do not wish to become PF members, providing a declaration in Form No. 11. I have learned that PF inspectors raise this issue during firm inspections. Kindly clarify this matter.

Hi Buddy,

Unless those employees drawing a basic salary of more than 15,000 Rs withdraw their PF amount in full at the time of joining the organization, they will continue to be a member of the PF.

With Regards,

Mr. Thumbs Up

Hi,

Employees whose Basic + DA is Rs. 15,000 or less automatically qualify for PF contribution. If an employee receives more than Rs. 15,000 of Basic + DA and hasn't contributed to PF in the past, they can be exempted from PF.

Hi,

PF Inspector will not raise any questions. As per the law, if an employee has a basic salary beyond 15k, they have to fill Form 11 and kindly file it in their file.

Regards,
Upasana