Is PF Registration Mandatory from Day One? Understanding Late Registration Liabilities

We are a manufacturing company and had crossed 20 employees 8 months back. After realizing this, we registered for PF. We now have 28 employees. Recently, we received a notice from PF inquiring why we were not registered in PF from the company's incorporation date, which was 12 years ago. Could you please clarify if it was mandatory to register in PF from the incorporation date, and what would be the liability for late registration?

Once you have engaged 20 or more employees, it is mandatory to register your establishment under the PF even if you have no coverable employees. If none are coverable, you are not required to remit any contribution. With regard to liability, you are liable to pay the contribution from the day when you have engaged 20 or more employees wherein you have coverable employee/s to the extent of wages of coverable employee/s.

Thank you, sir,

Can you please advise on how the liability will be calculated? Is the total of employee and employer contribution the liability?

Regards

Advice on PF Registration and Liability

Take proper advice from a lawyer or a good PF consultant. The liability will be from the period you reached the PF enrollment limit, which was 8 months back based on what you have written. For these 8 months, both liabilities will have to be borne, and after that, the employee will bear their part, and you as the employer will have to contribute. How many employees are above the PF limit of Rs. 15,000 per month? All these details need to be looked into first. This is just general advice giving you a broad outline of the likely liability, any interest for the period, and any penalties, if applicable.