Starting PF for Workers: Could This Lead to Union or Worker Concerns?

I am working in a manufacturing company as an HR Manager. We want to start PF for our workers, but I want to know if we started PF for them, are there any issues of union or other issues from the workers' side? Please guide me.

PF is a statutory liability and is the responsibility of the management to implement it. You need not seek the agreement of the Union to introduce PF. How long have you been working? PF authorities are likely to insist on PF coverage from the day the coverage occurred.

Thank you for guiding me. However, sir, we already provide them with other facilities like incentives, etc. But on our MD's side, if we start PF for them, we will stop giving incentives. I want to know which option is better - incentives or PF.

Regards,

Madde Up

Dear Sir,

Could anyone please share the PF process and how we can get started?

Regards,
Madde Up

PF Coverage Requirements

1. If the monthly salary paid to your employees is less than Rs. 15,000/-, the nature of your industry is specified in Schedule-1 of the PF Act, and the employee strength is twenty or more, then PF coverage ought to be there. Please respond with the position in this regard.

Incentives vs. PF

2. Incentive is no alternative to PF. PF is to provide for the institution of provident funds, pension fund, and deposit-linked insurance fund for employees; it is an investment made for post-retirement life. Incentives are paid concurrently with employment, and it depends on the individual to make any savings for the future.

Voluntary PF Application

3. If you are not meeting the criteria in point no.1, PF can still be applied on a voluntary basis, but the procedure is separate. Please clarify the position, and further details can be shared.

Respected Sir,

Our employee strength is 25, and we are providing a minimum salary of 6700 P.M. along with other allowances. The nature of our business is the manufacturing of cashew nuts processing machinery.

You are obviously under PF coverage, and it is effective from the day you had 20 or more employees. The PF officials would ask for proof, so keep all your registers and other documents to prove this fact.

Even with incentives, you may find it difficult to stop, as the union will object since it has become a part of their pay package. Incentives cannot be in lieu of PF, which is a statutory requirement.

Please take care and handle it carefully.

Thanks all,

But actually, I am also a fresher in the HR field. So, I don't know how to start the PF process. Can you please share it with me? If anyone has a PDF, please share it with me.

Regards,
Madde Up