Once your establishment is covered, you will have to cover your employees. For coverage of employees, of course, you can exclude employees whose basic salary are above Rs 6500 (now Rs 15000)
In case of coverage from an earlier date ( the date on which you had 20 or more employees) you will have to pay contribution, interest and damages on the contributions payable in respect of those whose basic salary were less than 6500.
If your Director is getting salary from the company, he should also be included in the number of employees for the purpose of deciding the date coverage. At the same time, if your is not a company but is a partnership firm, then the partners will not be come under employee and they can be excluded.
You being HRD, you must know the basic law of PF.
Please bear in mind that the day on which you reached head counts 20 persons altogether including of out-source, contract labour, contractual, temporary, casuals, Naka labours etc. irrespective of their salary, you are liable for PF registration from such date and liable for due compliance under the Act. Your liability with interest, damages start from this day onwards even though strength of head counts falls below 20.
Employer is not liable for the persons who are 'excluded employees' within the meaning under the Act. Onus lies on employer to prove that a person is an 'excluded employee'.
If you prove that all the employees are 'excluded employees', your liability will be Rs. 7/- per month plus interest & damages.
On this topic there are several discussions in the past in this forum. You are requested to do research.
Our respectable Madhu ji has explained about Directors / Partners when they are taken into consideration while computing 20 head counts.
i) Every establishment which is a factory engaged in any industry
specified in Schedule 1 and in which 20 or more persons are
ii) Any other establishment employing 20 or more persons which
Central Government may, by notification, specify in this behalf.
(Infancy period of 3 years has been withdrawn by ordinance w.e.f.22-9-97)
iii) any establishment employing even less than 20 persons can be
covered voluntarily u/s 1(4) of the Act.
Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment.
Employees covered enjoy a benefit of Social Security in the form of an unattachable, unwithdrawable (except employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death. Other Benefits include Employes’ Pension Scheme and Employee’s Deposit Linked insurance Fund.
Liable to be arrested without warrant being a cognisable offense. Defaults by employer in paying contributions or inspection/ administration charges attract imprisonment up to 3 years and fines up to Rs. 10,000 (S.14.) For any retrospective application, all dues have to be paid by employer with damages up to 100% of arrears.
Benefits at a glance
1. Advance for Purchase of Dwelling Site.
2. Advance for Purchase of Dwelling House/flat.
3. Advance for Construction of a House.
4. Advance for Repayment of housing loan to State Govt. housing board or any other govt. recognised housing finance body.
5. Advance for IIIness viz. Hospitalisation for more than month, major surgical operations or suffering from TB, leprosy, paralysis, cancer, heart ailment etc.
6. Advance for Marriage of Self/Son/Daughter/Sister/Brother.
7. Advance for Post MatriculationEducation of Son/Daughter.
8. Advance for Damage to the property Due to Natural calamity (Flood Riot/Earthquake).
9. Advance for Member affected by cut in the supply of electricity.
10. Advance for Member who is physically handicapped.
One of my friend asked about PF registration formalities, he running his own Service sector related to Tally software .His total employee strength is 6 Employees. he voluntarily want to give PF facility to his employees ,so what is the procedure for Registration of PF in this case.Pls provide me information about this .
With Regards ,
For voluntary coverage, you may ask him to contact the local PF enforcement Officer to start with.