Employee Opting Out of PF Deduction: What Forms and Declarations Are Needed?

Hi Team,

I am working with a BPO company in Delhi as an HR Executive for the past 3 years, and I have some confusion about what to do when an employee does not want to opt for PF deduction from their salary. Which form should we use in this case? Do we need the employee to sign any declaration form?

Thank you.

If an employee is covered by the PF Act, he cannot opt out of PF. It is a statutory obligation but not a contractual one.

B. Saikumar
HR & Labour Law Advisor
Navi Mumbai

Hi,

The employee has an exemption, but some conditions will apply.

1. Please inform me of the employee's basic salary. If it is more than 15000, then it's optional.

2. In the previous company, he had availed of this benefit. If yes, then he should take the PF benefit, as he cannot be exempted.

Regards,
Dinesh Kumar

Hello Kavi,

Coverage under the EPF Act is not by choice; it is mandatory. There are only two exceptions: firstly, if the salary is beyond the limit prescribed under the Act, and secondly, if the employer is exempted because the employer has their own PF scheme that is more beneficial to employees. In all other cases, the employee has to be covered under the Act.

Vibhakar Ramtirthkar
Email: snehvibha@yahoo.com
Phone: 9371001906

Dear Vibhakar Ramtirthkar ji,

According to you, if the salary of an employee is beyond the limit prescribed under the Act, he can be exempted from EPF. I have a question for you: suppose my salary is beyond such a limit prescribed, but I am a member of EPF. Will you still exempt me from EPF?

Thank you.