Understanding PF Applicability: How Employee Count and Salary Affect Your Obligations

Dear friends,

Please guide me in the following cases:

1. If the company has 21 employees with a basic salary of Rs. 7500 each per month, then will PF be applicable to it?

2. If the company has 21 employees with a basic salary of Rs. 6500 each per month, then will PF be applicable to it?

3. If the company has 19 employees with a basic salary of Rs. 6400 each per month, and 2 employees with a basic salary of Rs. 10000 each per month, then will PF be applicable to it?

4. If the company has 21 employees with a basic salary of Rs. 7500 each per month, and if PF is applicable to it, then will it be calculated on the 6500 or 7500 limit?

Please guide me.

Thanks in advance.

Deepak Vasani

For coverage of PF, the salary being paid is not a matter, but the number of employees is the deciding factor. If you employ 20 or more workers/employees, then your establishment will be covered by PF. If, out of 20 employees, there is only one employee whose salary is less than Rs 6500, he will only be covered. PF has to be contributed only in respect of that one person only.

An establishment so covered will continue to be covered even if the number of employees falls below 20. Employers can restrict PF contributions based on a salary of Rs 6500.

Regards, Madhu.T.K

Please let me know if:

1. An employee at the Unskilled level with a salary of 4000 would come under the ESIC and PF as our company has PF & ESI Registration.
2. Also, should I have to take registration under the Bombay Labour Welfare Fund Act 1953 for the same kind of manpower?

Please reply. Seniors, I need your help.

Ashi
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An employee with a salary of Rs 4000 will be covered by ESI and EPF. You also need to get registered under the Labour Welfare Fund Act.

Regards,
Madhu.T.K