Understanding EPF Opt-Out: How to Manage Employee and Employer Contributions When Salaries Exceed ₹15,000

In my company, a few workers don't want to deduct their PF, and their basic salary is more than ₹15,000. Where can I get proper information for non-submission of their EPF contribution? What will be the employer contribution?

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In your company, some workers are reluctant to have their PF deducted, despite having a basic salary exceeding ₹15,000. You are seeking information on how to handle their non-submission of EPF contributions and also inquiring about the corresponding employer contribution.

Increase in salary beyond the ceiling limit of wages under the EPF Act 1952 does not automatically result in ending the membership of the PF Scheme. Their membership has to continue limited to the wage ceiling amount provided they were earlier contributing to PF.

So if only the employment starts with a salary exceeding the wage limit under the Act, there is exclusion from compliance; otherwise, it is not there.

If these employees are presently covered, you should continue to contribute at least 12% of Rs 15,000. If not covered or if the establishment is getting covered newly, then you can exclude those whose PF contributing salary (PF contributing salary means the gross salary less HRA) is more than Rs 15,000 from PF coverage.