How to Handle PF Deduction Requests for High-Salary Employees in Small Companies?

Trushali Keluskar
Our company has fewer than ten employees, and we are not registered/eligible for PF registration. We have to appoint a person with a 20 lakh per year package, and he is asking for PF deduction in the salary breakdown. Please suggest a salary breakdown. Can we show a PF deduction in the salary breakdown?
Madhu.T.K
Since you are not covered by the EPF and MP Act, you cannot provide coverage to a particular employee alone. It is necessary that the establishment should be covered first, and then only can we decide how to enroll, who should be enrolled, on which salary we should deduct and contribute to PF, etc. Therefore, you may simply state that you are not covered by the EPF Act, and for the time being, you are unable to cover the employee under EPF. If the individual is an existing member, the salary is not an issue, and regardless of the salary, they should be covered. However, if the establishment is not covered by PF, there is no way to enroll the individual, and they will have to wait until the establishment reaches 20 employees and becomes a covered establishment.
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