Can I Opt Out of PF in a Startup with Less Than 20 Employees? Seeking Advice on Deductions

Queries Regarding PF in a Startup IT Company

I am working in a startup IT company where the total number of employees is less than 20, and my basic salary is more than 6500. The company has included their PF contribution of 3349.20 in my CTC and is showing the deduction as follows:

Employee Contribution - 3349.20
Employer Contribution - 3349.20
Professional Tax - 200
TDS - 3390

Please note that in my previous company, my basic was 12000, and I had opted out of PF. Hence, my query is whether the above deduction is correct, and can I opt out of the PF scheme? If so, what do I have to do?

An early response will be highly appreciated.

Regards,
Saurav

Dear Saurav,

The limit of Rs. 6,500 has been changed to Rs. 15,000 a long time ago. So, you can't opt out of PF if your Basic is below Rs. 15,000.

Since you mentioned that the total number of employees is less than 20, the employer may not be registered with PF. However, being a startup, the company may have plans to increase its workforce and could apply for registration soon. Therefore, they might have designed the CTC based on potential future growth.

Dear Saurav,

A company whose employee strength is less than 20 employees can get registered under EPF Act by opting for voluntary registration. Could you explain how much salary you receive in your hand?

Thank you.

Dear,

First of all, thank you for your information. Now, the PF liability is on the Basic 15000/-, so the employer is liable to deduct the PF from your salary.

Secondly, according to my knowledge, if any employee has a basic salary of more than 15000/- and has given the undertaking that they were not a member of the PF in the previous company, then they will be out of PF coverage.

Thanks,
Sukh Dev Sing