Is a Provident Fund Required for Companies with Over 20 Employees Earning Above Rs. 6500?

Mandatory Provident Fund for Employees

Is it mandatory to provide a provident fund to employees if the number of employees is more than 20, but none of the employees receive a salary less than or equal to Rs. 6500?

I think your query is whether it is mandatory to have PF registration even if all the (20+) employees are drawing basic + DA above Rs. 6500 pm. The answer to this query has been provided by me earlier in this forum. Still, I am giving it as follows:

Even if all the employees are 'excluded employees' within the meaning under the EPF & MP Act, you need to obtain...

I think your query is whether it is mandatory to have PF registration even if all the (20+) employees are drawing basic + DA above Rs. 6500 per month.

The answer to this query has been provided by me earlier in this forum. Still, I am reiterating it below:

Even if all the employees are 'excluded employees' within the meaning of the EPF & MP Act, you need to obtain a PF code and remit Rs. 7 (Rs. 5 + 2) every month. The onus lies on the company to prove that the employee is an excluded employee.

(Moderators/administrators of CiteHr are requested to delete my earlier post, which was posted incomplete)

Regards

Thank you for your guidance. What is this amount of Rs. 5+2=7? Is it fixed irrespective of the number of employees, or is it based on some minimum number? What does it designate? Do we need to send copies of salary slips of all employees in such a case to prove that no employee is getting a salary of 6500 or less than 6500? Please clarify or provide me with a link to understand it better.

Regards,
Mahavir Mittal

Dear Mahavir ji,

Administration Charges on Provident Fund

Admn. Chg. on PF @ 1.10% on PF salary is payable subject to Rs. 5 minimum. Admn. Chg. on EDLI @ 0.01% on pension salary is payable subject to Rs. 2 minimum. In case the PF salary is zero, the admn. chg on PF is Rs. 5 (minimum). In case the pensionable salary is zero, the admn. chg on EDLI is Rs. 2 (minimum).

No need to send a copy of the salary sheet to EPFO. The onus lies on the employer to prove that the employees are 'excluded employees' within the meaning of the Act, at the time of inspection. Form 11 of all the employees shall be maintained. A declaration by 'excluded employees' shall be maintained.

For adm chg at a minimum of Rs. 5 & 2, there are notifications by the department. 'Excluded employee' is defined in para 2(f) of the scheme. Form 11 is as per para 34 of the scheme.

Regards.

The said notifications are not available with me right now. However, what I can tell you in this regard is as follows:

Till 1986, the administration charges on PF were 0.37%, which was revised to 0.65% in 1986 and further increased to 1.10% from August 1998. In 1978, EPFO issued a notification setting a minimum administration charge of Rs. 5 on PF.

Up to 1987, the administration charge on EDLI was 0.1%, which was later reduced to 0.01%, with a minimum of Rs. 2 from October 1987, according to the notification issued at that time.

Both notifications are quite old and are not currently available with me.