Can Employees Opt Out of EPF Contributions? Seeking Clarity on Exemptions

Hi guys,

My name is Swapnil. I wanted to know if there is any provision where one employee can apply for exemption from EPF contribution as the entire establishment is covered under the EPF Act.

She or he has already closed his or her earlier EPF account or can submit Form 11 under the EPF Act to do so. Kindly check at your end and revert.

V. Murali

If the employee:
1) having a salary basic+DA component below 15000, then exemption not available.
2) has an active UAN in previous service, then exemption not available.
3) has not crossed 58 years of age, then exemption not available.

Thank you.

I think the post will be misread. If a person is joining a company at the age of (say) 25 and does not have an existing PF account/UAN number but has a starting salary of ₹20,000, then he can claim exemption by filing Form 11.

Revised Exemption Criteria

An employee may be exempt if:
- His starting salary at the organization (or salary at the time when PF is applicable to the organization) is above ₹15,000.
- He does not have an active UAN number from previous services.
- He is more than 58 years old.

Form 11 is a basic data sheet only for eligible members; it does not specify anywhere for exemption. For exemption, the employee has to express his/her option "not to be contributory" on the above three grounds in writing to the employer. After verification of the data provided in Form 11, the employer may consider the request; however, the employer must offer all employees who have not attained the age of 58 for the EPF option. The employer has no option to select the employee(s) for "exclusion" by themselves.

But he was earlier a member of EPF and now he has joined our company and wants to opt-out of EPF. Is this possible? Also, we have already contributed to EPF for one month.

EPF contributory members have no option to exit from EPF unless they resign and withdraw the same.

Existing members have to remain contributory up to resignation and getting unemployed or up to the completion of age 58+.