Can PF deductions be stopped under EPFO rules?

According to a TV9 Gujarati report, there is confusion among many employees regarding the Provident Fund (PF) amount deducted from their salary every month. Many people wonder if this deduction can be stopped. However, according to EPFO rules, it is mandatory to have PF deductions in companies where 20 or more employees are working. This is not a voluntary matter, but is mandatory for most of the salaried class.

If an employee's Universal Account Number (UAN) has already been generated during a previous job, they cannot opt out of PF deductions. Whether they get a new job or a salary hike, the PF deduction continues. Exemption can be granted only in a special situation, for which it is necessary to follow three conditions. In such a situation, an application for exemption can be made through Form 11, but once a UAN is generated, this option is closed forever.

According to the new rule effective from 17 September, 2026, the salary limit for mandatory EPFO membership has been increased from ₹15,000 to ₹25,000. Previously, employees earning more than ₹15,000 were excluded from PF coverage. Now, every employee earning between ₹15,000 and ₹25,000 will automatically get PF coverage. According to government estimates, more than 51 lakh employees will get the benefit of this security for the first time due to this change. Therefore, it is now mandatory to keep the new limit of ₹25,000 in mind while thinking about getting an exemption from PF.

It is important for employees to understand that the amount deducted from their salary is their own savings. Apart from this, employees falling under this bracket also get the benefit of pension after retirement under the Employees' Pension Scheme (EPS) and insurance security under the EDLI scheme. If you feel that you fall under the scope of exemption for the first job, it is advisable to contact your company's HR department before taking any decision. Also, you should check where your basic salary falls according to the new limit. There is no way available for employees holding a UAN to stop PF.