How Do Employees Opt Out of PF Deductions? Seeking Guidance on EPFO Rules

Dear Colleagues & Seniors,

Please help with the clause of "Non-deduction of PF" from the employee's side if he/she opts for the same. Is there any form from EPFO? If yes, please send it to [Login to view]. If not, then please educate yourself with the rule paragraph and number as per EPFO.

Anticipating your valuable feedback.

Warm Regards

Dear Dipanjan, EPF is an employee welfare scheme, and the ceiling amount at present is Rs. 15,000.00 (Generally Basic + DA). If an employee's Basic + DA salary is higher than the ceiling amount, then he/she may opt for non-contribution/exemption towards EPF, and the employer needs to agree to it (mutual agreement/consent).

In this case, an employee should write an application to the HR department/management stating that his/her Basic + DA salary is above the EPF contribution ceiling limit and hence will opt for non-contribution/exemption towards EPF. Then HR/management has to inform the EPFO regarding the case in writing that, as per mutual consent from the employee and employer, the following member will opt for exemption from EPF contribution. Hence, kindly allow for the same.

Hope this resolves all your queries. Seniors, kindly comment and share your views.

Dear Shaikh Abedeen,

Thank you for your update and warm regards. Shaikh is already informed and well aware of the situation. What I require is a specific format from EPFO, along with the latest rule book or amendment that outlines the details. Please provide me with the relevant Para number from the assigned book or amendment.

I look forward to receiving your valuable feedback.

Warm Regards

Declaration of Non-Participation in Provident Fund Scheme

Please check the below format for your reference. I hope you will find it useful.

Date of Joining: 12/June/2017
Employee Name: ABC
Address: XYZ, Chs, SDT Road Andheri,
Mumbai – 400056

To,
The Human Resource Department,
(Company Name)
Mumbai

I am informed by the Human Resource Department that my Basic + DA salary is above Rs. 15,000 of my total CTC (Cost to the Company), where I can opt for PF (Provident Fund) irrespective of my provident fund eligibility or not.

Since I am drawing a CTC salary, any deduction on account of either Employee or Employer shall be from our CTC only, as was decided and explained. Since I do not fall under the eligibility criteria for PF, I hereby declare and confirm that it is not mandatory for me to contribute, and as such, I do not wish to join the Company’s Provident Fund scheme.

This is for the kind information of the Human Resource Department for doing the needful.

Best Regards,
(Employee Name)