Is Provident Fund Mandatory for Small Software Companies with 20+ Employees?

Hi,
I am working in a software company where employee's strength is 20+ and basic salary is 6500+. Is PF is mandatory for us?

Umesh

Hi Umesh,
Find attached zip file it will helps to you.
Regards,
Suhas

Dear,

If you have 20+ employees, then you are required to obtain a PF code. However, if all employees' basic salary is above 6500, then you are not bound to deduct PF. In this case, you can submit a nil return, and every month you will deposit Rs. 7 as inspection charges.

PF is mandatory only when:

1. The total number of employees reaches 20.
2. All employees must have worked continuously for 3 months.
3. If any of the 20 employees have a salary less than Rs 6500/- per month.
4. Once registered, you are required to file returns for all future periods.

Please clarify: What happens if the number of employees exceeds 20 and all of them earn more than Rs 6500/- per month? Is PF registration required?

Hi friend,

As per the EPF & MP Act 1952, if the employees drawing Basic + DA (Special Allowance) salary are more than 6500 and the employee strength is 20 or more, then you are not covered under the above said act. If there are any problems, please call 9870166192.