Hi there,
Yes, an employee whose salary is more than INR 15,000 can choose to opt-out of the Provident Fund (PF) scheme. However, there are certain conditions that need to be met:
1. 👨‍💼 The employee should not have been a part of the Employees' Provident Fund Organisation (EPFO) before. You mentioned that the new employee had a PF in the previous company, which indicates that he/she was already a part of EPFO. In such a case, the employee cannot opt out of the PF scheme.
2. 🧒🏼✨ If an employee is eligible and wants to opt out, they need to declare this to their employer at the beginning of their employment. Once an employee becomes a member of the EPFO, they cannot opt out till they quit employment and withdraw the full EPF balance.
3. 👩🏻‍🎓 The declaration should be made in Form 11, which is a declaration form to be filed by an employee taking up new employment in an organization that is registered under the EPF Scheme. This form contains details like the employee's name, date of birth, previous employment details, and the reason for not deducting the PF.
Please note that not contributing towards PF might not be the best decision from a long-term financial planning perspective. PF contributions serve as a forced saving that can be beneficial in the long run.
I hope this information helps! It's always a good idea to discuss such decisions with a financial advisor before making them. 🪙💼👍