PF Registration Required With 22 Employees?

I have 22 employees including 4 directors in my company, all of whose basic salary is above ₹16,000. Do I need to register for PF?

Yes, exceeding the strength of 20 persons in the salary register entitles the establishment to register within 15 days of reaching 20 persons and make contributions. Contributions may be on full basic + DA or a ceiling of ₹15,000 should be maintained, but the establishment cannot escape the liability.

Thank you, U.S. Sharma.

This leads to another query. As per my knowledge, employees whose basic salary + DA is above 15,000 may contribute voluntarily. It is not mandatory provided they were not part of the PF previously. None of my employees are currently part of any PF scheme, i.e., they have all withdrawn or never been a part of it. Do they still need to pay PF? Are they not exempt from it?

The employer cannot deny the EPF liability; he has to offer the EPF to their employees.

Exemption comes into the picture when more than 20 members of the establishment are already contributory, but a few have been appointed freshly, and their starting pay scale is over 15000/-

If any member has been contributory to EPF at any time in the past service period (it does not matter whether he has withdrawn or not), he cannot opt out. He must contribute to the scheme.

Since their salary is more than $15,000, they are exempted employees as they were never PF members before. If they want to contribute, you have to give consent as you will have to pay admin and EDLI charges. Via media, if needed, is if you, they, and you contribute and deposit the amount in a bank account/FD or similar and distribute interest accrued. You may give them an annual statement of the account to convey that their money is safe. PF without authorities!