PF Deduction for New Joiner
The company is not registered for PF deduction. However, a new joiner has a PF account. The question is whether his/her PF can be deducted.
If not, will it affect the PF holder's future contributions?
From India, Bhubaneswar
Acknowledge(0)
Amend(0)
The company is not registered for PF deduction. However, a new joiner has a PF account. The question is whether his/her PF can be deducted.
If not, will it affect the PF holder's future contributions?
From India, Bhubaneswar
Acknowledge(0)Amend(0)
Hi, Any firm with a minimum of 10 employees must be registered under the Employees' Provident Fund and Miscellaneous Provisions Act. So, your company needs to register first, subject to applicability. After registration with the PF authorities, an Establishment code will be allotted, and then you can start deducting PF contributions. Without registering, the employee will not be able to contribute to PF.
From India, Madras
Acknowledge(0)Amend(0)
1015From India, Madras
Acknowledge(0)Amend(0)
If your establishment, to which a new employee holding a PF account has joined, is not covered by the EPF & MP Act because you do not have 20 employees, then the new employee should wait until your establishment is covered by the Act. This means it is not possible to register an establishment just because someone who is an existing member of PF has joined.
However, if you already have 20 or more employees but have not taken the initiative to get your establishment covered, then it is a serious legal issue, and you must take immediate steps to register. Registration or coverage of PF will be retroactive from the date your employee strength reached 20, and you will have to pay both the employees' share and the employer's share from that date, with interest and damages. The interest and damages part can be addressed later, but you must proceed with registration.
Nowadays, at the time of company registration, the EPF and ESI registrations will be done, but only the coverage will be pending. However, for proprietorship and partnership firms, registration can be taken when your number of employees reaches the limit of 20.
From India, Kannur
Acknowledge(0)Amend(0)
However, if you already have 20 or more employees but have not taken the initiative to get your establishment covered, then it is a serious legal issue, and you must take immediate steps to register. Registration or coverage of PF will be retroactive from the date your employee strength reached 20, and you will have to pay both the employees' share and the employer's share from that date, with interest and damages. The interest and damages part can be addressed later, but you must proceed with registration.
Nowadays, at the time of company registration, the EPF and ESI registrations will be done, but only the coverage will be pending. However, for proprietorship and partnership firms, registration can be taken when your number of employees reaches the limit of 20.
From India, Kannur
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Benefits.doc
Employee Benefits.zip