Is PF Registration Necessary for Our Company with Salaries Over Rs.10,000?

Our company has more than 20 employees, all drawing a monthly salary (Basic & DA) over Rs.10,000. None of them are presently members of PF governed by RPFC. Please let us know whether the company should go for PF registration.

Yes, if you have 20 or more employees in your organization, it is compulsory to register under the PF Act.

Regards,
Khan
HR

You have to go through the PF registration process. Form 11 should be filed in the employee's file with their signatures, which shows that employees agree with the non-deduction of PF. Also, the Basic should be above 6500 for this condition to apply. PF registration is mandatory.

Regards,
Upasana

You have to compulsorily go for PF registration. You can file nil returns monthly, but your establishment should have a PF code. My kind suggestion would be to contribute to PF, at least for the slab basic of 6500, as it is a good savings that happens behind the scenes.

However, it is the understanding between the management and the team. The PF clause is very clear regarding the registration.

Regards

If an organization has more than 20 employees, they need to register under PF. If an employee's Basic+DA exceeds ₹6,500, they must provide clarification in Form 11.

Section 36(1) Compliance

As per Section 36(1), if no employee is entitled to become a member of the fund, the employer should submit a NIL return.

Please let me know if you need further clarification or assistance.

Thank you.

Thank you, Aditya. Can you tell me if it is voluntary to fix the basic pay of employees, especially if employees receive a high salary and are being pressured to set their basic pay at ₹6,500?

As per section 2(F) - Excluded means:

1. Fresh members who were not members in the previous company and have not withdrawn their full amounts are considered excluded employees.
2. If they were members in the previous company and have not withdrawn their full amount, then they need to continue with PF contributions.

I hope this helps clarify the information for you. Let me know if you need any further assistance.