Under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, it is mandatory for establishments with 20 or more employees to cover all eligible employees under the Provident Fund (PF) scheme. However, there are certain exceptions and criteria to consider:
1.
Threshold: Establishments with less than 20 employees can voluntarily opt for PF coverage.
2.
Eligibility: All employees earning wages up to a specified limit (currently Rs. 15,000 per month) are eligible for PF coverage.
3.
Exclusions: Certain categories of employees, such as those already covered by a higher social security scheme or those above a certain age, may be exempt from PF coverage.
4.
Enforcement: Non-compliance with PF regulations can lead to penalties and legal consequences for the employer.
To ensure compliance with the law and provide financial security to employees, it is advisable for employers to cover all eligible employees under the PF Act. Consult with legal experts or HR professionals to understand the specific requirements and implications for your organization.