Navigating PF Contributions: Can I Declare No PF Account for More In-Hand Salary?

I had a PF account with company A, where I worked from 2009 to 2011. There was no concept of UAN then. Since then, I have worked at a few more companies where I never had a PF account. Now I have joined company B (basic > 30K), which is asking for my UAN and eNomination proof. I don't want to contribute to PF and want the maximum in-hand salary. They say I can opt out of PF only if I never had a PF account. Can I declare that I never had a PF account? Will it create any problems in the future?

Provident Fund as an Investment

Provident Fund is a good investment that will provide interest along with income tax exemptions to a certain extent. Still, if you do not want to be covered, you can declare that you do not have a UAN. If you do not generate a UAN for your previous PF account, you will not be able to withdraw the amount in that account. At the same time, if you declare that you had a PF account but do not have a UAN, the present company will cover you under PF, and a new UAN will be generated. You can transfer the old PF to this account by using the online facility available. However, in the future, you should continue to contribute to PF.

Potential Changes in EPF & MP Act

In the future, if the EPF & MP Act is amended and the threshold limit is increased from Rs 15,000 to Rs 30,000 (there is a proposal to make it Rs 25,000 at least), then you would become covered. In that situation, if you declare that you had a PF account with your earlier establishment, it will be considered a concealment. Having PF is always beneficial, both in terms of investment and tax savings, as well as for other benefits like pension and insurance (Employee Deposit Linked Insurance) associated with it. However, it is your choice.

Thanks for the detailed reply. From your response, it seems that I can generate my own UAN for the old PF account. Is this true?

What documents are necessary for this?

Generating Your UAN

Yes, you can generate your UAN. However, there are certain things that need to be ensured before proceeding. Firstly, the name as per your Aadhaar should exactly match the name provided by your employer during your EPF registration. Additionally, the mobile phone number linked to your Aadhaar must also match. If these criteria are met, you can generate your Aadhaar by visiting the EPFO's website at https://unifiedportal-mem.epfindia.g...mberinterface/ and then click on the "Direct UAN Allotment by Employees" link.

Informing Your Employer

Simultaneously, if you inform your new employer that you are an existing member without a UAN, they can create one for you. Once a UAN is generated, you can "activate" it by visiting the aforementioned portal. Upon activation, you can transfer your old PF accumulations to the newly created one by utilizing the "One Member One PF" option in your member portal. This member portal will remain active at all times. After generating your UAN, you can check the available balance in your PF account by using the Passbook link provided.