An employee is drawing a salary of less than $6500, and his contribution to PF is deducted from his salary every month. His monthly pay was revised, and he now earns $8000, crossing the $6500 threshold. Now, he doesn't want to pay his monthly PF contribution and wishes to opt out of PF. Is it possible? What is the procedure and other conditions? Please clarify.
From India, Coimbatore
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From India, Coimbatore
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Dear,
First of all, my advice is: Don't break your PF because that is your savings for the future. If the employee wants to withdraw their PF, they should submit a resignation to the HR/Personnel Department. After some time, they can rejoin.
For any queries, email me at amitsharmaji@rediffmail.com.
From India, Delhi
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30First of all, my advice is: Don't break your PF because that is your savings for the future. If the employee wants to withdraw their PF, they should submit a resignation to the HR/Personnel Department. After some time, they can rejoin.
For any queries, email me at amitsharmaji@rediffmail.com.
From India, Delhi
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Dear Mohandas, this is for your information that Para 26A of the Employees' Provident Fund Scheme, 1952 provides that a member once enrolled under the Scheme shall continue to be a member at all times except when he finally withdraws the PF accumulations standing to his credit in the Fund and not otherwise. Of course, his contribution can be restricted to ₹6500/- per month if he opts to continue.
It is always better to continue the PF membership as it is a social security scheme that provides many benefits, including a pension.
Regards,
BS KALSI
New Member
From India, Mumbai
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It is always better to continue the PF membership as it is a social security scheme that provides many benefits, including a pension.
Regards,
BS KALSI
New Member
From India, Mumbai
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Dear Mohandas,
It is not possible to opt out of PF. If a member is already in the PF role, even if they are earning more than 6500, they cannot opt out of the PF role. They are in the PF role until their resignation, leaving, or retirement.
Regards,
Manoharan D
From India, Coimbatore
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It is not possible to opt out of PF. If a member is already in the PF role, even if they are earning more than 6500, they cannot opt out of the PF role. They are in the PF role until their resignation, leaving, or retirement.
Regards,
Manoharan D
From India, Coimbatore
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PF-Know Employees Provident Fund-CHART-L-4. doc
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf