Is EPF Registration Mandatory for Firms with 30 Employees Earning Over $30,000 Monthly?

Dear Experts,

My firm has 30 employees, all of whom have salaries exceeding $30,000 per month. Is it compulsory to register under EPF? And if registration is compulsory, are monthly returns applicable?

Thank you.

Hello,

This is in reference to your query. It is mandatory for employers to register the establishment in EPF. If the salary of all employees exceeds 30,000, after registration, it is optional for the employers to deduct EPF from employees' salaries. If they are not deducting PF from employees, then they have to generate a 100 Rs monthly challan.

Even if anybody qualifies for PF, your establishment will be covered by EPF since the total number of employees is more than 20.

It is good that all of your employees (including the office boy?) are paid a salary above Rs 30,000 when many employers are trying to hire employees on wages below the statutory minimum wages.

Dear Friend,

Here are some things to keep in mind in this kind of scenario:

1. Are all of them freshers in PF (previously they did not have PF number or it was not confirmed)?
2. If not, then they need to register and pay as per PF regulations.
3. If all of them are freshers, take Form 11 and record it.

No issue. As already clarified for coverage under any Act, whether EPF & MP Act or ESI Act, the number is important. Obviously, there can be some labor-involved activities, like sweeping and cleaning, for which you may be paying on a daily basis, which may account for an amount below Rs 15,000. For that, PF contribution can be made.