I Think there is no option to be exempted from PF conribution.
From India, Patiala
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4From India, Patiala
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Hi Priya,
Just a clarification on the withdrawal of PF. If a person has left the previous organization and joined another organization immediately or within a few weeks, then he/she can't withdraw the PF. There has to be a gap of at least 2 months between two jobs.
Let's say a person left his job with a 3-month gap and withdrew his PF. Now, as there was a gap of more than 3 months in the next job, he can opt for the no PF option in the next company. If it's not the case, then he/she has to opt for PF.
From India, Mumbai
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Just a clarification on the withdrawal of PF. If a person has left the previous organization and joined another organization immediately or within a few weeks, then he/she can't withdraw the PF. There has to be a gap of at least 2 months between two jobs.
Let's say a person left his job with a 3-month gap and withdrew his PF. Now, as there was a gap of more than 3 months in the next job, he can opt for the no PF option in the next company. If it's not the case, then he/she has to opt for PF.
From India, Mumbai
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PF contribution is mandatory within the PF Act irrespective of age. In case the person remains as an employee and upon attaining 58 years, no deductions are to be made for the family pension. This is what the law indicates and implies.
From India, Hyderabad
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From India, Hyderabad
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Neeraj As withdrawal is due to resignation exemption is not possible Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Priya,
Your employee worked for a government organization and she opted for VRS. This indicates that at the time of separation from the government organization, the employee hadn't achieved the retirement age.
The employee used to have her PF deducted in the government organization, indicating that she was a member of the PF scheme.
She joined your company in 2009 and requested not to have PF deductions, and you processed the application by signing the exemption form (PF form-11) for her.
Now, your query is:
Are there any policies that allow her to opt out of PF contributions, or is she required to pay the PF?
The answer lies in options A & B:
A - If the employee has reached the retirement age when joining your organization, she can be a part of the PF scheme only, not the Pension fund.
B - If she has not attained the retirement age, she will be eligible for both PF and Pension. The Pension will cease once she reaches retirement age, while PF contributions will continue.
It's important to note that once an employee has been a part of EPF, they cannot opt out of it throughout their employment in all companies.
Employees often falsely declare in form 11 that they have never been part of the PF scheme, but this information can be verified through the options provided in form 11.
For further information, please refer to form 11 of the PF. It will address all your queries.
Best Regards,
Sunita Dhoundiyal
From India, Delhi
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Your employee worked for a government organization and she opted for VRS. This indicates that at the time of separation from the government organization, the employee hadn't achieved the retirement age.
The employee used to have her PF deducted in the government organization, indicating that she was a member of the PF scheme.
She joined your company in 2009 and requested not to have PF deductions, and you processed the application by signing the exemption form (PF form-11) for her.
Now, your query is:
Are there any policies that allow her to opt out of PF contributions, or is she required to pay the PF?
The answer lies in options A & B:
A - If the employee has reached the retirement age when joining your organization, she can be a part of the PF scheme only, not the Pension fund.
B - If she has not attained the retirement age, she will be eligible for both PF and Pension. The Pension will cease once she reaches retirement age, while PF contributions will continue.
It's important to note that once an employee has been a part of EPF, they cannot opt out of it throughout their employment in all companies.
Employees often falsely declare in form 11 that they have never been part of the PF scheme, but this information can be verified through the options provided in form 11.
For further information, please refer to form 11 of the PF. It will address all your queries.
Best Regards,
Sunita Dhoundiyal
From India, Delhi
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Employee Benefits.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf