Form 11 for Employee got 1st time job

[KUMAR Narasimhan]

Dear Sir, an employee got his 1st Job, and he is not member of PF earlier, and drawing a Gross salary of ₹ 16000/-, and he his saying to his employer not to deduct PF by giving Form 11.

Is this acceptable?

[YAGAY andSUN]

If you've never made any contributions towards EPF, ever, you can choose not to contribute towards EPF. If your basic monthly salary is over ₹ 15,000, you can opt out of your EPF contributions if you want to (although it isn't recommended that you do this).

[KUMAR Narasimhan]

Dear Sir,

Thank you for the Information, threshold limit of ₹ 15000/- for his basic salary or Salary?

Here in his 1st time employment he is earning total salary of ₹ 16,000/- and he would like to opt out from PF

[YAGAY andSUN]

It is the basic salary of ₹ 15000/-

If the employees is getting ₹ 16000/- as gross salary then he cannot opt out from the PF Scheme.

[KUMAR Narasimhan]

Dear Sir,

Could you please provide any notification with respect the above.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Yagay.

AI Summary

Employee with 16,000 gross salary cannot opt out of Provident Fund; basic salary must exceed 15,000. An employee, starting his first job with a gross salary of 16,000, inquired whether he could opt out of the Provident Fund (PF) deductions by submitting Form 11, as he was not previously a PF member. A respondent clarified that opting out is possible if the basic salary exceeds 15,000, but not recommended. However, since the employee's gross salary is 16,000, he cannot opt out of the PF scheme. Further clarification was sought on whether the threshold applies to basic or total salary, and it was confirmed to be the basic salary. Another participant supported this interpretation.