PF Deduction Confusion: How to Handle It When Your Company Isn't Enrolled Yet?

My name is Sangeeta. I recently joined an organization as an AM-HR. However, I have a doubt regarding PF deduction. My organization was established in July 2013 but has not enrolled for PF yet. Still, management is asking to deduct PF for employees.

Could someone kindly provide guidance on how to proceed with this and what the exact procedure is?

Regards,
Sangeeta

It is not advisable to deduct the PF unless you are enrolled in PF or have started the enrollment process. For PF deduction, you should calculate 12% on the basic salary up to a ceiling of 6500 and pay the same amount as the employer's contribution, with additional admin charges of 1.61%.

There are many discussions in the same blog regarding PF calculations and sample salary statements too.

Even though the company was started only in July 2013, if the number of employees is 10 or more (new amendment for the number of employees in 2013), the company has to obtain a PF code. In the meantime, they can recover from you and add their contribution, and take a DD every month in favor of the PF department. They should submit the same along with a covering letter informing about the pending PF code. Remittance is made through DD. Upon allotment, they have to register online, update all employee details from day one, and file PF_ECR for every month against the DD submitted.