Does My Company Need to Register Under the PF Act with Our Current Salary Structure?

Hi,

I have a query: if an employer has 4 employees whose salary is more than $10,000 and 16 employees whose salary is less than $6,500, does the employer have to register under the PF Act?

Your prompt response will be appreciated.

Regards,
SNP

Irrespective of the wages, if any company has 20 employees, it should be considered applicable for PF coverage.

Last week, I joined a small firm that manufactures electric poles. The entire work is carried out through contract labor. It operates on an automatic manufacturing system; hence, only 6-8 unskilled laborers are engaged in this unit.

We have fewer than 20 employees and are not maintaining a provident fund. Please review my case and advise if there are any issues with it.

Regards,
Hemant Sharma

What will be the date of applicability if it is the first invoice date? We have not deducted employees' share in the past. So, are we supposed to get it done retrospectively?

Regards,
Rahul Shukla

Amendment on Employee Criteria for PF Coverage

Is there any amendment specifying or minimizing the criteria of employees from 20 to 10?

Regards,
Rahul Shukla

To implement PF in a firm with 20 employees and as the company is entering its 21st year, you should start by creating a detailed plan for Provident Fund (PF) contributions. Since you currently do not have a PF scheme in place, it is important to establish one to comply with regulations and provide benefits to your employees.

Begin by researching the requirements and guidelines set forth by the government regarding PF contributions for companies of your size. Consult with a financial advisor or HR specialist to understand the process and steps involved in setting up a PF scheme.

Next, communicate the implementation plan to all employees, detailing how PF contributions will work, the benefits it offers, and any changes they can expect in their compensation packages. It is crucial to ensure that all employees are aware of the new PF scheme and understand its implications.

Consider conducting training sessions or workshops to educate employees about PF and address any questions or concerns they may have. Transparency and open communication are key in successfully implementing a PF scheme in your firm.

By proactively planning and executing the implementation of PF in your company, you can ensure compliance with regulations and provide a valuable employee benefit that promotes financial security and well-being.

My basic salary is 18000. Can I start my PF scheme? I am willing to start my PF, but the company is not initiating the PF scheme. What should I do?