Is PF Deduction From Employee Is Optional For Small Company ???

Dear All,
I am very new to this particular setup which has only 40 plus employees, here the PF not been deducted from employees. Is this is a right way of doing and Is PF deduction is optional for small company ???
Please pass on your reply ........
Thank You
Regards,
Siva

If the employee strength is more than 7, it is compulsory to maintain statutory requirements. Hence please know the procedure of registering yourself with EPFO and start paying PF, if this continues, and an employee who is aware of rules and regulations, intimates EPFO, then action will be taken against the company. To avoid these kind of problems in future, please speed up the process.
This is what I would say upto my knowledge.

Dear Seniors ,
pl. clarify my doubts here. i want to know the PF Rules and how to break the salary structure. And what is the minimum wages of Maharashtra state.

Hello,
Ours is newly started recruitment consultancy and staff is less than 7.. so how should we design the salary structure?
Should we add PF/ESI in the salary or not??

Dear Supriyamd
Where did you get the number of "7" employees for applicability of the statutory requirement ?
I would like to know the act to which you are referring.
PF is applicable only to companies with 20 or more employees.
ESIC applies in case of 20 or more employees (10 or more in some states)
I am not aware of any act that applies from 7 or more.

ProximHR Placement,
PF, ESIC is not applicable to your company, so there is no need to add it to salary of your employees.
There are lots of discussion on salary structure in this forum, search for the relevant thread and proceed.
In reality, for a small company like yours, salary structure does not matter, except that employees get some tax benefit for conveyance allowance (up to Rs. 1600 per month) and HRA (a complicated working your CA / Auditor will be able to explain)

Sorry Sir. I mistook the number of Labourers for forming the Union. For PF to be applicable 20 employees are requried. I apologise for what ever I said above.

Hi All,
I have a query regarding PF.
I work for a construction industry. Here availability of labour is a difficult task. We pay them in cash as they are:
1. Casual & Migratory Workers
2. Most of them don't have Bank Accounts or any photo ID for opening bank accounts
3. They work under Labour Contractor.
PF authorities are issuing notice and forcing us to enrol these casual workers under EPF or else servicing us notices. According to them, even if a worker worked for a day, PF needs to be deducted.
While making it compulsion, workers are threatening to leave the work. We are in great trouble. After convincing, we could get the ids of couple of workers who were having Aadhar and Address Proof. And obviously, we are paying that above the committed amount (from our pockets)
Recently, I heard that if a person has worked for more than 60 days, then only they should be made member of PF. I am not sure how far it is true.
Kindly Advise.
Satya

Siva
Pf,Esi are applicable to your firm as you have more than 20 employed persons.ESi will be applicable only if the company is in implemented area.after five years Gratuity will be applicable.

Satya,
That rule you are putting has been removed more than 10 years ago. At the moment, if any person has worked for you even for a day, you are required to pay PF for that person.
The action of the PF authorities is absolutely correct
Today, every person has an Aadhaar card, voter ID card on some other proof of ID. Under the PM Jan Dhan scheme, the banks are required to open bank accounts with just one single document. Therefore, in the current scenario, you can easily get their bank accounts.
It is always a point of negotiation and paying a salary that makes it worthwhile for the person to work. You can therefore be a higher amount and deduct the PF or pay The PF directly on your