Can We Stop PF Contributions with Only 9 Employees Left? Seeking Advice on Next Steps

To All,

Can we stop the PF account? When we started, there were 20 employees, but now there are only 9. Therefore, can we stop paying PF and also cease deducting PF from the staff?

Reply

Dear Friend,
No matter if the employee's strength is 9. Employer is bound to pay PF contribution after registration under Provident Fund till then liquidation of the company or 0 employees.

Regards

Pankaj Chandan:)

Hi, I agree with Pankaj. Once the organization is covered under the PF Act, deductions must be made according to the rules even if the number of employees falls below 20.

Anurag

I totally agree with the above writers, but in case you want to stop with the PF, you can stop it by increasing the basic, i.e., more than Rs. 6500. Also, you need to ask your existing employees to write a letter stating that they are not looking for PF during their tenure with your organization.

The further process will be that the employees will be given a new joining, and after 2 months of the joining date, their PF amount will be returned, and they will have to sign the PF form 10C for claiming their PF. In this way, you can stop paying PF while still being covered under the Act. So, whenever you want to start paying PF again, you can do so.

You will come under the act until and unless there is even a single employee under PF. The director cannot be removed from PF by this method; therefore, you will only have to process PF for the director.

Hope I might have provided some valuable inputs.

Regards,
Neha

Yes, any industry once covered under the PF Act will remain covered forever until the company is closed down.

You cannot do that; any employee who is covered under the PF will remain covered under the Act even if his/her Basic+D.A. increases beyond Rs.6500.00. However, you can limit the PF deduction to Rs.6500.00.

I agree with Mr. Rajeev Verma. We can't stop the deduction of PF of an employee once they are covered under the PF Act, but we can limit the deduction to Rs. 6500.

Regards,
Sivadasan

Hi,

My name is Mukesh Sharma. Mai WLC India Ltd, Jaipur mein job karta hoon. Aur pichhle 2 saal se mera PF deduct ho raha hai, lekin mere paas PF department ki koi receipt nahi aayi hai. Main ye jaanna chahta hoon ki ab tak mere account mein kitna amount jama ho gaya hai. My PF Account No. is DL-27308-176, mera email id hai [email protected], [email protected], aur mera mobile number hai 09252444405. Kripya aap mujhe bataye ki main kaise apna amount pata kar sakta hoon, kya sach mein mera amount cut ho raha hai ya nahi. Kripya mujhe guide kijiye.

Thank you.