Scenario is -
A person was earlier working with a firm with less than 20 Employees so there was no PF implication.
Later he joined a new company where they are obligated to adhere to PF rules. So if that person wants to opt out (considering he doesn’t have a pf account opened in previous employement ) , what are the rules regarding that? How can he opt out?
Ans: If a person is joining a company for the first time where PF is applicable, and they do not have an existing PF account from previous employment, they can opt out of the PF scheme. However, this option is available only if their monthly basic salary exceeds Rs 15,000 at the time of joining.
To opt out:
The person must fill out and submit Form 11 to their employer.
This must be done at the time of joining the new company.
Once opted out, the decision cannot be reversed as long as they are with that employer.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in