Salary Without EPF Deduction: Is It Possible and How Do You Handle This Request?

Employee wants the salary without deduction of EPF

Is it possible?

Yes, it is set that his basic salary is above 15K. He will be out of EPF.

Excluded Employee Concept under EPFO

There is a concept under EPFO called "Excluded Employee." If the employee is already a member of PF and their salary is more than 15,000/- per month (Basic & DA), then the employee will continue as a PF member. For a new employee at the time of joining, or any employee who was earlier a member of PF and subsequently withdrew their amount and closed their membership but is joining again with more than 15,000/- per month as Basic & DA, they will be considered an excluded employee.

Regards, S K Bandyopadhyay (Howrah, WB) CEO-USD HR Solutions

An employee whose monthly salary falls within the threshold limit statutorily prescribed for EPF cannot have such an option, for it amounts to contracting out, which is prohibited in labor jurisprudence.