How Can We Manage PF Deductions for Employees Earning Less Than Rs. 8000?

Hi,

We have recently registered our company and we are working with 24 employees. Most of them have a salary of less than Rs. 8000 per month. I have no problem in deducting PF from these employees, but the employees won't accept it due to the immediate reduction of 12% along with TDS and ESI deductions.

What can I do to avoid falling under the criteria for paying PF? Should I hire employees in a different way or categorize them as casual laborers (if casual laborers are exempted from PF)?

Hi Anonymous,

You can't avoid PF and ESIC. You need to obtain both the codes and remit the same with the authority.

Thank you.

Hi Praveen,

Thanks for the prompt reply. I agree that I can't avoid PF and ESIC, but is there any workaround? I am strongly not thinking about myself, just thinking about my employees. The one who is receiving Rs. 8000 will receive nearly Rs. 6500.

Hi Ashutosh,

There is no workaround. If you find any other way to avoid the statutory requirements for your employees, you will be in trouble. It is better to inform the employees and explain to them the benefits of these social security measures.

Kindly ensure compliance with the statutory requirements relevant to your industry such as Minimum wages, PF, ESIC, Payment of Wages, etc.

Feel free to call or reply for any assistance or clarification.