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To Deduct PF or not

vijay (Accountant) (902 Points)

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 )

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3 Replies

Sarthak Kumar Dash (Student) (232 Points)
Replied 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.