New Hire Wants Full Salary Without PF: Is It Possible to Exclude Them Legally?

nisha-shekhar
I have a question. We recruited a new employee to our company. During the salary discussion, he mentioned that he doesn't want PF. HR is asking for a 25,000 take-home salary. We decided to offer him a gross salary of 25k (including PF). However, he doesn't want PF but wants 25k in hand. Can we exclude him from PF? Please guide me.
vmlakshminarayanan
Hi, if your company is already covered under PF, then you cannot exclude him from PF. Still, if you want PF, don't bring him on rolls. Hire him on a short-term contract basis as a Retainer consultant wherein only 10% TDS has to be deducted. This is also a temporary measure only. Even for consultants, PF is mandatory.
saswatabanerjee
Nisha, this topic has been discussed so many times that I am tired of even seeing the heading. Please use the search option on the main page, and you will see all the discussions.

PF Account Inclusion
If the person already has a PF account, then you will have to include him in PF, and you both don't have a choice. If he does not have an existing PF account, since his starting salary with you is above 15,000 a month, you can treat him as an exempt employee and exclude him, but do the paperwork properly.
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