hi, I am keerthi working as a HR , my company wants to give employee salary without pf deduction . may i know how to manage the company without pf deduction from employee and company.
From India, Hyderabad
From India, Hyderabad
If your company has 20+ employees, then PF deduction is mandatory for all organizations.
Applicability of Employees' Provident Fund and Miscellaneous Provisions Act 1952
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole of India except Jammu & Kashmir.
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
- Every establishment engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette.
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
The Act does not apply to:
- Co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)
- The establishment to which this Act applies shall continue to be governed by this Act, even if the number of employees falls below 20 at a later date. [1(5)].
- 16(1)(b) Establishments under the control of state/central Govt. & employees who are getting benefits in the nature of 16(1)(b) contributory P.F. or old age pension as per rules framed by the Govt.
- 16(1)(c) Establishment set up under any central, provincial, or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules.
Voluntary Coverage
If any of the establishments do not satisfy the above two conditions for coverage and if the employer and the majority of the employees are willing, the Act may be applicable to such establishments (voluntary coverage under section 1(4)).
From India, Jaipur
Applicability of Employees' Provident Fund and Miscellaneous Provisions Act 1952
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole of India except Jammu & Kashmir.
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
- Every establishment engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette.
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
The Act does not apply to:
- Co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)
- The establishment to which this Act applies shall continue to be governed by this Act, even if the number of employees falls below 20 at a later date. [1(5)].
- 16(1)(b) Establishments under the control of state/central Govt. & employees who are getting benefits in the nature of 16(1)(b) contributory P.F. or old age pension as per rules framed by the Govt.
- 16(1)(c) Establishment set up under any central, provincial, or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules.
Voluntary Coverage
If any of the establishments do not satisfy the above two conditions for coverage and if the employer and the majority of the employees are willing, the Act may be applicable to such establishments (voluntary coverage under section 1(4)).
From India, Jaipur
CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.