Is Provident Fund Required for Companies with Fewer Than 20 Employees in Chennai?

I want to know whether provident fund is applicable for a company with fewer than 20 staff in Chennai.

It is not mandatory, but if you are willing to have coverage, you can make a voluntary contribution.

Dear Srikant,

Though the "Employees Provident Funds and Miscellaneous Provisions Act, 1952" is applicable where twenty or more persons are employed, Section 1(4) of the Act provides that where the employer and the majority of employees of the establishment have agreed, they can approach the commissioner under the Act for such coverage even if there are below 20 employees.

BS Kalsi, Member since August 2011