How Can a Small IT Firm Implement PF Benefits with Less Than 25 Employees?

Hi Everyone,

I am working with a small IT firm with an employee strength of approximately 20. I want to add a PF facility for the personnel benefits in the company. How can I add this variable to the salary (meaning the procedure)? I received information that a minimum of 25 employees is required to add this variable to the salary. Is this correct? If not, then how many minimum employees are required for PF deduction in the company? What should be the percentage?

Kindly provide your valuable feedback.

Dear Sir,

Basically, as per the EPF Act, 20 employees are required for PF, and the PF basic wages limit is 15,000.

Secondly, another option is voluntary PF under section 1(4). It describes that employees want PF deduction.

Thank you.

To get registered in PF, employee strength should be a minimum of 20. You can add PF contributions to your salary after becoming registered in PF. It is advisable to hire a good consultant to assist with the registration process. Be aware that the PF and ESI officers are always prepared to make claims on your money through any means.

Thank you for your valuable advice, Ms. Vishwas and KishorPP. Recently, I received confirmation that two employees have completed their notice period, so now the employee count is less than 20. Is this possible now?

Is the basic salary Rs. 15,000? Is this amount a breakdown of variables or are you referring to the full package?

Can we not register for PF by ourselves? Is it mandatory to go through a consultant for this process?

Please provide the details. I'm eagerly waiting for your response!

Actually, if you want PF registration under Section 1(4) of the EPF Act now, you can apply for voluntary PF coverage.

For more information, please contact me.

PF Requirements for Firms

If the number of employees in your firm is 20 or more, then PF is compulsory. For less than 20 employees, PF is not compulsory, but you can cover them voluntarily. You can apply online to obtain the code number at this link - http://olre.epfoservices.in/. All other details are available in this link. This is applicable for both voluntary coverage and compulsory coverage.

EPS and Alternative Pension Schemes

If the salary is more than ₹15,000, EPS is not compulsory. You can also encourage your employees to join the recently launched Atal Pension Yojana (APY), which is more beneficial than the existing EPS scheme. Hope the above answers all your doubts.

Dear All,

Please guide me on Subcontractor PF deduction. If 10 subcontractors are working in an organization and each subcontractor has fewer than 20 workers, do the subcontractors need to set up PF accounts? If not, how can the principal employee manage the subcontractor laborers in the EPFO portal? Please advise me on this matter.

Thank you.