Provident fund
Sachin Kumar
(Querist) 30 March 2023
This query is : Resolved
an employee once opted for PF deduction , cannot opt out.
In which legal provision it is written he cannot opt out.
kavksatyanarayana
(Expert) 30 March 2023
The only way to opt-out from PF is not getting enrolled the first time only and that is only possible if your total salary is more than 15,000/- per month. Any company, you join they have PF coverage and your salary is less than 15k you don’t have any option you will have to get enrolled in PF.
And once you get enrolled this forceful (but one of the best saving option) it don’t let you opt out till the time of your retirement, even though you switch companies.
Dr J C Vashista
(Expert) 31 March 2023
The employee may opt out of his / her service to escape PF.
Why does the employee want to opt out ?
How you are concerned with PF contribution of an employee ?
Sudhir Kumar, Advocate
(Expert) 31 March 2023
if such option was given to the employee, the n every employer would have got such option signed and easily evaded PF of each and every employee.
Then EPFO officials would the have to play cards and Ludo to while away their time till 5 in the evening as there would have been no customer.
T. Kalaiselvan, Advocate
(Expert) 31 March 2023
Employees’ Provident Fund Scheme was set up under the Act for the purpose of providing a post retirement benefit for the employees or a class of employees or their legal heirs in case of death, employed under an establishment to which this Act applies.
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 ("Act") is applicable pan-India.
An employee with a basic salary of over Rs. 15,000 and who has never been a member of EPF can opt out of the scheme. But once they become a member, they cannot opt out of the scheme.
The funds from an EPF account can be withdrawn completely in full settlements on attaining 58 years of age or at the time of retirement the employee can claim for a complete settlement or if an employee remains unemployed for a period of 2 months or more or in the case of death while in service before attaining the age of retirement, in which case the nominees or legal heirs are entitled to withdraw the accumulated fund.
The partial withdrawal of funds from the EPF is available for educational opportunity, medical treatment, repayment of home loan, marriage, purchase of land/house/flat, in case the establishment/factory is closed, natural calamity, an year before retirement and unemployment for a period of more than one month.
