Is Provident Fund Mandatory for Small E-commerce Companies in India? Seeking Clarity on Exemptions

Hi Team Greetings! I'm recently looking after the HR payroll for an E-commerce Company in Coimbatore, Tamil Nadu, India. They have an office in Coimbatore with 15 employees currently working. My query is whether Provident Fund (PF) is mandatory for the company to provide, even if it is eligible for PF, or if I can be exempt from providing PF to employees. Employees have no issue with not receiving PF. Please help me understand this. Thanks.

Gaby HR

Hi, if your organization comes under the purview of PF, then PF deduction is compulsory. The choice of employees has no value here.

Thank you, Ms. Vmlakshminarayanan,

May I please know whether PF should be provided for 15 employees or 20 employees?

Gaby

Organizations with 20 or more employees are required by law to register for the EPF scheme, while those with fewer than 20 employees can also register voluntarily.

Hi,

As per the PF Act, PF is compulsory for organizations employing 20 or more employees.

Exempting Employees from Provident Fund (PF)

Hello, I would like to inquire about the form we need to complete if we wish to exempt any employee from contributing to the Provident Fund (PF). Could you please provide guidance on this matter?

Thank you.

Hi, If your company is not covered under PF, there is no need to obtain any forms from employees. However, after the commencement of PF, if any employee is exempted from PF and their PF wages are above ₹15,000, and they were not covered with their last employer, for such cases, you can obtain PF Form 11.