Navigating PF Deductions for Start-ups: When Are They Mandatory for Employees?

I have started an IT firm that goes by the name SmartSense Consulting Solutions Pvt Ltd. I have some queries that I need help with.

Employee Threshold for PF Deductions

1. We currently have 10 employees. Is there a threshold, either in terms of the number of employees or their salary, after which PF (Provident Fund) deductions are mandatory?

PF Deductions for Temporary Employees

2. We recently hired two temporary employees without realizing that PF deductions were necessary.

Please assist me with these questions. Your advice is greatly appreciated.

Thank you.

You currently have a total of 10 + 02 = 12 employees as of today. Once you reach 20 employees, the PF Act will be applicable to you from that day onwards. Employees with a Basic + DA up to 15,000 will be mandatorily covered under the Act.

Thank you.

Government Amendment on PF Applicability

The government is going to amend the rule that PF (Provident Fund) would be applicable even if the organization employs 10 employees.

Regards,
S Rajasekaran