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To Deduct PF or not

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vijay

Accountant

902 Points Posted on 29 November 2022

New employee has joined a company having PF registration and he doesn't want to get his PF deducted saying never before PF got deducted, can the company choose to not deduct PF from his salary ( Gross Salary ₹ 35,000 p.m. Basic is 40% of gross )

Replies (3)

Quick Summary

A new employee earning £35,000 per month, with basic salary at 40% of gross, has joined a company with PF registration. They wish to opt out of PF deductions, stating they've never had PF deducted before. However, the employee has over 15 years of employment history, which may affect their eligibility to opt out.

Sarthak Kumar Dash

Student

232 Points Posted on 29 November 2022

You can choose not to make EPF contributions if you have never contributed to the scheme. For this, your salary (basic + dearness allowance) has to be more than Rs. 15,000. You need to be in your first job and without a PF account number. If you choose this option, the salary you get in hand will be without deductions towards the provident. Fund. Also If you move to a foreign country, pursuing a new job, you need not make EPF contributions in India.