Hello Sanjay...
Under the PF Act, an organization is applicable when it has 20 or more employees...
So once the company is covered under PF Act (whenever it employed 20+ employees) then the company continues to be covered under PF Act even if the employment drops below 20 at any given time.
Similarly, an employee is eligible to PF contribution if at the time of joining (or introduction of such policy) the basic+da of that employee is less than or equal to 6500.
Meaning to say that all employees whose basic is less than 6500 (irrespective of gross/ctc) are covered under pf act and the contribution would be -
12% of basic by employee
12% + 1.61% of basic by employer which is distributed as -
a) 8.33% to pension scheme
b) 3.67% to PF fund
c) 1.1% PF and pension account handling chrges
d) 0.5% EDIL plan
e) 0.01% EDIL account handling charges
So if the person's basic is 3000, PF contributions would be
Employee - 12% of 3000 = 360
Employer -
a) Pension.................................... 249.90 i.e. 250
b) PF............................................. 191.1 i.e. 191
c) PF and Pension a/c handling.... 33
d) EDIL.......................................... 15
e) EDIL a/c handling..................... 0.30 (rounded off to nearest currency possible)
Hope this cleared your doubt.
Now if at any point the employee's salary is revised upward, then also the employee continue to remain covered under PF act and a bare minimum of 12% of 6500 ought to be contributed by both parties. In such cases a bare minimum of 780 Rs p, is to be contributed by each party.
Secondly - Ideally a person who is getting 20,000 as monthly gross and getting just 3000 as Basic, is something fishy. Obviously the basic amount will depend on the components to be given and other factors, yet it will rise concern as accordingly to normal practice, we find basic close to 40% of gross.
Hope this was able to clear your doubts.