What is the procedure if a new joiner does not want to have PF? He is elligible for PF but he just does not want that. Is there any procedure or to file any Form with PF office?
KAMAL SONI (Banker) 28 December 2010
Provident Fund is one of the mandatory schemes established by the Government of India to provide social security to the service class. It is a scheme, which has bearing on the employee and the staff member and provides security to the staff member and / or his dependants on retirement or liability or death.Its mandatory for the staff member to contribute 12% of their Base salary to the provident fund. The contribution will be made by deducting the amount from the monthly salary. The Company also makes a contribution equivalent to 12% of the base Salary of the staff member. Thus there is no way out for the same......
Pratheep Kumar (Asst. Manager - HR) 28 December 2010
If the employee’s salary (as per epf definition) is more than the celling amount i.e more than Rs.6500/- you may exempt the employee from epf deduction.
If you are paying less than the above there is no option to exempt.
Pratheep Kumar. R