Small Business PF Eligibility: How Can We Join the Provident Fund System Despite Rejection?

We are a small manufacturing unit employing fewer than 20 people. We would like to voluntarily come under the purview of the Provident Fund (PF), but the department has refused based on eligibility grounds. Do we have any other options to be included in the PF system?

Advice Needed

Thanks,

Raghuvir

Establishments employing 20 or more persons and engaged in any of the 180 industries/classes of businesses specified are eligible for PF contribution.

Regards,
Nithya

In this case, please contact your nearest PF Commission. 20 employees mean 20 people working under one roof, including security, laborers on contract, any voucher payments, etc. So, get a clear idea from the local PF official.

Thanks

Hi Raghuvir, There is a provision in the PF Act that even though your organization employs fewer than the stipulated 20 figures for obtaining a PF Code, you can apply for VOLUNTARY COVERAGE of PF. For one of my clients, I obtained VOLUNTARY COVERAGE of PF even though their strength was less than 20.

Regards,
Kantharaj

Dear Kantharaj, please contact Raghuvir and provide him with the necessary guidance so that he can extend PF coverage to all his employees.

The proposal has been presented before the parliament, but it has not been passed, and the GAZETTE NOTIFICATION has not been issued yet. Hence, we will have to wait for some time until the amendment is made to the PF ACT.

Regards,
Gem