New HR in a Startup: How Do I Calculate PF for Employees Earning Above 10k?

Dear seniors,

I have recently joined as an HR in a startup. Here, we have 10 employees, all of whom have salaries above 10k. I would like to know on what basis I should calculate PF on their salaries.

Thank you for your guidance.

Brief query: Please note that you will have to register under the act and obtain a code number. The act is applicable to organizations engaging 20 or more employees. How many employees are you currently engaging? Employees drawing a basic salary of up to Rs. 15,000 are required to be covered.

What I have narrated is the gist for beginners' knowledge; many more actions will follow if the act is applicable to you.

If there are 10 employees, then it is not necessary to deduct the PF because the PF Act is not applicable in your organization. Twenty or more employees are required for PF registration.

Sir,

Our organization has 21 employees and has been deducting PF for the past 5 years. Out of the 21 employees, 10 have a basic salary of 10,190 and a DA of 7,000, making their total salary more than 35,000. Our organization deducts PF at a rate of 12% on the basic salary of 10,190. Is this correct or wrong?

Thank you.

Our organization has 21 employees, and we have been deducting PF for the last 5 years. Out of the 21 employees, 10 receive a basic salary of 10,190 and a DA of 7,000, making their total salary 35,000/-. Our organization deducts a PF amount of Rs 10190 at 12%.

Is this calculation correct? Please confirm.

Hi,

If the gross salary is Rs. 35,000 (or more than 20k), then the minimum PF contribution should be Rs. 3,600/- (including both employee and employer contributions).

Regards,
Jayarathi Lawrence

Gross salary is not PF salary; only Basic & DA, if any, together comprise the PF salary.