Confused About PF Deductions with a Small Team and Salary Details? Let's Discuss!

I googled a bit and found that PF registration is mandatory if the company has 20 or more employees and if the employee's salary is 15,000 or less.

The employee count of my current company is only 6 people (i.e., less than 20 employees). My basic pay is 12,000 rupees (i.e., less than 15,000 rupees). However, my total in hand, which includes basic pay, HRA, and Special allowance, is 20,200 rupees (i.e., more than 15,000 rupees).

This seems to contradict the rule. What will be the PF implications?

In this scenario, even though your total in-hand salary exceeds the 15,000 rupees threshold, the primary criteria for PF deduction is met based on your basic pay, which is below 15,000 rupees.

Here are the PF implications based on the provided information:
- PF deduction is applicable because your basic pay is 12,000 rupees, which falls within the eligible range for PF contribution.
- The fact that your total in-hand salary exceeds 15,000 rupees does not affect the requirement for PF deduction based on the basic pay criterion.
- Since your company has 6 employees, PF registration may not be mandatory based on the minimum employee count criterion of 20 employees.

Therefore, you should proceed with PF deductions based on your basic pay amount. It's advisable to consult with your company's HR or a legal expert for further clarification specific to your company's circumstances.