I wanted to know from HR experts whether an employee can opt out of the EPF Scheme and demand that the Employer's Contribution be paid to him along with his salary, thereby increasing his take-home salary. Does signing Form 11 by that employee, stating that they have never been in PF and that he is voluntarily opting out of the scheme, serve this purpose?
Thanks and regards
From India, Delhi
Acknowledge(0)
Amend(0)
Thanks and regards
From India, Delhi
Acknowledge(0)Amend(0)
If he fulfills the condition in Form 11—that is, he has a starting salary of over 6500 basic + DA and he does not have any existing PF account—he can opt out of PF. However, he cannot ask the company to pay him the employer's contribution.
From India, Mumbai
Acknowledge(2)
Amend(0)
2508From India, Mumbai
Acknowledge(2)Amend(0)
Employer's Contribution and Salary Compliance
In fact, adding the employer's contribution to salary is an offense under the PF Act. The act provides that the employer cannot reduce salary for compliance with the act. By adding the employer's contribution to salary, the company would be confirming that they had earlier reduced salary to the extent of PF, which is specifically disallowed.
From India, Mumbai
Acknowledge(1)Amend(0)
In fact, adding the employer's contribution to salary is an offense under the PF Act. The act provides that the employer cannot reduce salary for compliance with the act. By adding the employer's contribution to salary, the company would be confirming that they had earlier reduced salary to the extent of PF, which is specifically disallowed.
From India, Mumbai
Acknowledge(1)Amend(0)
Understanding PF Act Coverage
One should know that an organization is covered under the PF Act subject to certain conditions. Once these conditions are fulfilled, it is obligatory for the employer to cover its employees for PF contributions. However, if the emoluments of the employee exceed the amount prescribed under the Act, then they need not be covered. Furthermore, if all employees are covered under the PF scheme, then it is not open to the employee to opt out of the scheme.
From Oman, Muscat
Acknowledge(1)Amend(0)
One should know that an organization is covered under the PF Act subject to certain conditions. Once these conditions are fulfilled, it is obligatory for the employer to cover its employees for PF contributions. However, if the emoluments of the employee exceed the amount prescribed under the Act, then they need not be covered. Furthermore, if all employees are covered under the PF scheme, then it is not open to the employee to opt out of the scheme.
From Oman, Muscat
Acknowledge(1)Amend(0)
If your organization is covered under EPF Scheme and your wages are below the ceiling for coverage prescribed in the EPF Scheme 1952, you CANNOT opt out of the scheme.
From India, Bangalore
Acknowledge(1)Amend(0)
From India, Bangalore
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
EPF - Form No. 11 - Composite Declaration Form_Blank.xls
EPF Form 11.doc
FORM 11-EPF.pdf