Is It Legal to Skip PF Deductions for Fixed-Term Employees on a Lump Sum Salary?

Please help me out with my query. If an employee had a PF account in his previous organization and in his new establishment, he is on a fixed-term contract, say for 1 year. He is receiving a consolidated salary of 20k with no breakdown of his salary, only a lump sum amount. The new organization does not want to deduct his PF. Is it legally correct?

Yes, as his consolidated salary is above 15K, now the clause is about the basic being above 15K. However, my organization deposits PF on the consolidated salary, also considering it as basic.

Please ensure to get the PF exemption form signed by that employee as well.

Dear Mr. Aniket,

As he had a PF account in his previous organization, will this situation potentially lead to any labor issues? He has not requested to be exempted from PF contributions himself. Instead, we are the ones who wish to do so.

When you gave him an offer, didn't you tell him that PF would not be part of his salary and he would be exempted? You have to get that form signed.