PF OPT-OUT - Is it really necessary for them to get their PF deducted if they do not wish to?

shradha-chandra
Hi everyone, I am working as an HR in a start-up company, and we have recently decided to have PF deductions for our employees. During the initial hiring process, we informed them that they could opt out of PF deductions. However, I have now learned that for those employees for whom PF deductions have already been made, it is mandatory to continue the deductions. My question is, is it really necessary for them to have their PF deducted if they do not wish to?

Also, if an employee has a basic salary of less than 15000, then they can opt out of the PF scheme if they were not previously subject to deductions.
Madhu.T.K
There is no PF opting out. You cannot exclude an existing member of PF even if their salary (PF qualifying salary or basic salary) at the time of their joining your establishment is more than Rs 15,000. Therefore, if an employee opts out while joining and in the future, it is identified that they were a PF member in their previous organization, you will be liable to pay their contributions (both their share as well as the employer's share) with interest and damages. Please do not do it. If the employee is a fresher, or if they declare in form 11 that they were not a member of EPF in the past, then only can you exclude them. That also, ONLY if their basic salary is not more than Rs 15,000.

NO WAY, an employee whose basic salary is less than Rs 15,000 can be excluded from EPF.

At the time of joining, along with other joining forms, please collect the form 11 which is attached.
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