Is PF Deduction Mandatory for Small IT Companies with Over 20 Employees?

Hi, I am working in an IT company with an employee strength of 40 people. However, there is no PF deduction. Could you please guide me on why that is the case? Is PF mandatory for the company or optional? The number of employees has exceeded 20.

Thank you.

Compliance with EPF Provisions

Compliance with EPF provisions is mandatory and cannot be avoided once the establishment is covered under them, and the salary of the employee is not excessive as per the prescribed limit. Even if the employee exceeds that limit later, they will still be governed by these provisions.

To ensure the implementation of EPF provisions, it is advisable to seek guidance from someone to avoid unnecessary confrontation with the employer. Under the RTI Act, request the EPF code number and the number of employees covered in your organization. Inquire whether the inspector has verified the number of employees listed in the register maintained by the employer under the Employees Shops and Establishment Act and if all eligible employees are covered under the EPF Act.

Thanks,
Sushil

EPF Registration Requirement for Companies

For any company, if the employee strength exceeds 20, it should register for EPF. They have made it very easy to register companies online, simplifying the procedures. It is better to register through our approach. If they inspect, it will be a challenging scenario. They will demand contributions for PF from former employees and penal damages for not complying with the EPF Act.

Understanding Employee Eligibility for Provident Fund

The question is not about the availability of online facilities but about the mental setup. Prior to this, a formal application was required to be submitted once the establishment was covered under the Act. Who knows how many employee details are given online? Why should an eligible employee be left out? When the law is in place, no one can claim ignorance of its provisions. When certain employees were supposed to be provided membership since they were covered, why should they suffer? There are cases where an employer does not include an eligible employee, and in such instances, they are required to reimburse arrears of contribution.

Thanks,
Sushil

It appears that your employer is trying to escape statutory liability and deprive employees of their rights as per the provisions of the EPF and Miscellaneous Act of 1952.