Is PF Registration Necessary for Small Companies with High-Salary Employees?

pavan kuamr
Hi, this is Pavan. Our organization is one year old. Until now, we haven't made any registration in PF & ESI. Recently, we have reached 20 employees. We are in the process of PF & ESI registration. However, most of the people have a basic salary of more than 6500/- and are not interested in availing of PF & ESI benefits. If we exempt those employees, the remaining staff will be around 10 members.

In this situation, do I have to make PF registration or not? Is it mandatory?

Attribution: [CiteHR](https://www.citehr.com/494770-pf-optional-employee-pg2.html#ixzz32pDLb2gG)
jeevarathnam
First of all, please tell me the nature of the business. If the total manpower is 10 or more, and even if there is just one employee who can be covered, it is mandatory to enroll for ESI and PF registration. If you have any doubts, please do reach out to me.
PriyankaDasgupta
I am working as an HR Executive in an IT firm. Our India branch has been operating since 2010. Currently, the total strength is only 14, out of which only 4 members are below the salary range of Rs 15,000 per month, and they are not willing to avail of the ESI benefits. For ESI, the minimum criteria is 10 employees. However, is it still mandatory to enroll for ESI benefits if the remaining 4 employees (who fall under the ESI bracket) are not willing to do so? As you already clarified with Mr. Jeevarathnam P that it's mandatory, but is it still mandatory in the current situation?
Harsh Kumar Mehta
Dear member, if your unit is located in an implemented area, it is definitely coverable, and you are required to ensure compliance for 4 employees receiving wages up to Rs. 15,000 per month. I could not understand the meaning of the phrase "Is it still mandatory in the current situation." Statutory laws must be strictly followed, and there is no room for personal will or discretion.
jeevarathnam
Even for software companies, if the total employee strength is 10 and above, irrespective of the number of coverable employees, ESI enrollment is mandatory. Since June 2010, your organization will be covered. It is better that you enroll for ESI registration.
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