When Can a New Company Start Deducting EPF for Employees? Seeking Clarity and Evidence

pranabdas0801
Sure,

When is a registered company eligible to deduct the EPF of their employees? Is it from the commercial production stage or the start of the project stage?

Please assist me at your earliest convenience with evidence of the act and also provide the website where the clause is mentioned.

Yours sincerely,
Pranab
kumaracme
When you cross recruiting 10 or more persons in your company rolls, you can start recovering EPF Contribution. If this is so now, you start recovering EPF from employee salary from the date you recruited the 10th employee in your company.
saswatabanerjee
Coverage under PF commences when the company has more than 19 employees, not 10.

saswatabanerjee
Mandatory PF Contribution Requirement

It is not "eligible" to deduct PF contribution. It is "required" to deduct and contribute, meaning it's not a choice but a compulsory requirement. It does not matter what stage of business your company is in. As soon as the number of employees crosses 20, you need to get registered with the PF department and contribute the required amounts. You may, if you wish, opt for voluntary contribution of PF even before you reach the benchmark of 20 employees. However, it is a path that is rarely taken.

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