When you join your first job and your basic salary exceeds Rs. 15,000 per month, you may be given a choice—opt into EPF or opt out. While opting out can increase your monthly take-home salary, it also shifts the responsibility of long-term savings entirely onto you.
Before making this one-time decision, it’s important to understand who can opt out, how the process works, and what alternatives exist if EPF isn’t part of your plan.
Who can opt out of PF (and who can’t)
You can opt out of EPF only if both conditions below are met:
- Your basic salary is above Rs. 15,000 per month, and
- You have never contributed to EPF before (no UAN or past PF account)
Once EPF is activated—even for a single month—you cannot opt out later. This makes opting out a one-time, entry-level decision.
Alternate for long-term savings: Not choosing EPF? Consider putting your savings into a Bajaj Finance Fixed Deposit, offering returns of up to 7.30% p.a.—safe, flexible, and ideal for salaried individuals looking to grow their money smartly. Check FD Rates now!
How to opt out of pf at the time of joining
If you’re eligible and decide to opt out, the process must be completed during onboarding:
- Confirm eligibility – Basic salary must exceed Rs. 15,000 per month.
- Ensure no prior UAN – Any past EPF contribution disqualifies you.
- Inform your employer in writing – This must be done at joining.
- Submit Form 11 – A self-declaration confirming no prior EPF membership.
- Employer processes the request – No UAN is generated, and no PF is deducted.
Once EPF is activated, the decision cannot be reversed.
Planning to skip EPF?
Make sure you don’t skip saving. A Fixed Deposit gives you predictable, low-risk growth—perfect for first-jobbers or those planning their finances independently. Open FD Account.
