Is Our Company Required to Register for EPF with Only One Employee Earning Below Rs. 15,000?

EPF & MP Act, 1952 Applicability and Registration

In our company, the total number of employees is 32. All are employed on a consolidated salary basis. Out of these 32 employees, only one employee's salary is Rs. 14,000/- per month. All others earn more than Rs. 15,000/-. The company has not yet registered with EPFO.

Questions:

1. Whether the provisions of the EPF & MP Act, 1952 are applicable to the company, and should it register with EPFO?
2. If the answer to question 1 is yes, will all employees receive EPF from the company, or only the one employee with a salary of Rs. 14,000/- per month?

Dear Jatin,

Remember, as per the government notification, EPFO is applicable to companies with a staff strength of 10 or more employees. In this case, your company needs to be registered with EPFO. The minimum deduction for EPF eligibility is a basic salary of ₹15,000. Therefore, one of your employees, whose salary is ₹14,000 per month, is also eligible.

Please ensure compliance with EPFO regulations for all eligible employees.

Thank you.

EPFO registration is mandatory for you, my dear.

If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-

If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 25/-

EPF registration is necessary once you cross the age of 19. It is irrelevant whether only one person is receiving a salary below Rs. 15,000 while others earn above Rs. 15,000. You may cover all persons, but contributions can be restricted up to a salary of Rs. 15,000 or the actual salary if it is less.

EPF Requirements for Educational Trusts

In an educational trust, there are 16 permanent teaching staff members, 4 trustees, and 6 daily wage workers rendering their services. The teachers' salaries are based on their experience levels. Five teachers receive 10,000 per month, four receive 9,000 per month, and seven receive 7,500 per month. Three trustees are compensated with 5,000 for managing the trust, while one receives 20,000.

Mandatory EPF Registration

Is it mandatory for this trust to have EPF? If employees do not agree to contribute to their PF but the trust is willing to cover their contribution, how can these grievances be resolved?