How Do I Set Up Provident Fund for a Small Team with Less Than 20 Employees?

Hi Rekha,

I am the first person to join HR in my company and I just want to know what the procedure is for PF if the employees are less than 20 members. We would like to enroll in PF, so kindly let me know what the procedure is to get into PF.

Regards, Rekha

Hi Rekha,

Actually, the rule states that if you have fewer than 20 employees, you have nothing to worry about regarding PF. However, if it exceeds 20, it is compulsory for every employee. If you need any detailed information, I will provide that to you. You can revert back to me with your inquiries.

Regards,
Ankit

Hi! You can opt for the PF under a voluntary coverage. You need to first fill the PF form with all the required information. Next, you must apply to the regional PF commissioner for the PF code and also inform a designated person who will be authorized for correspondence and challenges from your end. Once you receive the PF code, you can begin deducting the amount. I hope this clarifies your query. Regards, EAFIL

Dear Eafil,

Thank you for the valuable information. I just need some more clarifications. How are PF numbers given? Are they provided by the PF department, or can the company allocate the PF numbers? In our company, we assign the numbers ourselves to new employees in a sequential continuation from the numbers already allocated to employers. For instance, we use formats like DL/PF Code/001 or DL/PF Code/002 in continuation. I would like to confirm whether our current practice is correct or incorrect.

Regards,
Monica

Dear Monica,

What you are doing is correct. We have to obtain permission from the PF office for the number of branches we have. We will assign the numbers from this number to that number.

AJAY

Mr. Ajit,

I think your opinion is wrong. We never require permission for granting PF numbers (A/c. numbers) to employees. Also, there is no requirement for intimation of branches to the PF office (except in the coverage proforma).

However, Monica is following the right practice.

Regards,
Prashant Patil