Dear All, Our organization has reached 20 employees. However, all our employees are above the minimum basic salary range of 6500/-. None of them have registered for PF in their earlier organizations. I wanted to know if we have Form 11 signed by all our employees stating that they have never been in PF and they are voluntarily opting out of the same, does the company still need to register?
PF Registration Requirement
As per the rule, a company needs to register for PF if there are more than 20 employees. However, if all employees opt out of PF, does the company still have to register? What is the procedure for the same?
Please guide me on this matter.
Regards,
Salloni
From India, Pune
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6PF Registration Requirement
As per the rule, a company needs to register for PF if there are more than 20 employees. However, if all employees opt out of PF, does the company still have to register? What is the procedure for the same?
Please guide me on this matter.
Regards,
Salloni
From India, Pune
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Any organization can be registered under the PF Act. If the basic salary of all your employees is above ₹6,500 per month, you can register your firm under the exempted category. You can also consult your local PF office for further clarifications.
From India, Madras
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From India, Madras
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Dear Vivek, Thank you for your prompt reply. However, is it complusory for a company to register since there would not be any PF contributions to be done?? Regards, Salloni
From India, Pune
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From India, Pune
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Exempted Establishment vs. Exempted Employee
"Exempted establishment" and "exempted employee" are different in nature. You might have an "exempted employee," but this doesn't affect the applicability of the PF on your organization. As Section 1 A & B clearly defines "20 or more persons employed" and does not make any other distinction, hence PF is fully applicable. An organization can only seek exemption from PF if it has a better or equal social security scheme (Sec 17).
As far as your query about nil contribution is concerned, you can process that and submit a minimum challan required, approximately Rs. 17 or so (please verify with your local PF office). In my opinion, you should get registered with PF (as you already have 20 employees, hence it's mandatory to get registered with PF) and process the minimum challan.
Regards,
Atishai
From India, Delhi
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"Exempted establishment" and "exempted employee" are different in nature. You might have an "exempted employee," but this doesn't affect the applicability of the PF on your organization. As Section 1 A & B clearly defines "20 or more persons employed" and does not make any other distinction, hence PF is fully applicable. An organization can only seek exemption from PF if it has a better or equal social security scheme (Sec 17).
As far as your query about nil contribution is concerned, you can process that and submit a minimum challan required, approximately Rs. 17 or so (please verify with your local PF office). In my opinion, you should get registered with PF (as you already have 20 employees, hence it's mandatory to get registered with PF) and process the minimum challan.
Regards,
Atishai
From India, Delhi
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Hello, Thankyou for a brief understanding... I have understood the concept and will get the same discussed at the local PF office and get it implemented... Regards, Salloni
From India, Pune
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From India, Pune
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The organization has to register for PF, regardless of whether the employees fall under the category. The organization must inform the PF Department that, even if there are no PF contributors in our organization, by submitting the minimum Challan, which includes only the administrative charges.
From India
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From India
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