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I work at a private firm with a monthly salary of Rs 50,000. Can I opt out of EPF and contribute to
I work at a private company with a monthly salary of Rs 50,000. I asked my employer to deduct the NPS contribution from my salary as part of my retirement benefit. However, my employer deducts from my salary for EPF contributions. Is there a way to opt out of EPF contributions? What do you think I should do?
Name withheld Reply by Pooja Ramchandni, Partner, Shardul Amarchand Mangaldas & Co.
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) applies to notified establishments engaging 20 or more employees. As per the EPF Act, an employer must contribute towards EPF in respect of all employees unless the employee is an “excluded employee” or the employer has sought an exemption. Both employer and employees are required to contribute towards the provident fund.