• PF liability

In case of organization where none of the employees have basic salary less that Rs 15000 pm and none of them have opted for pf deduction, I have following questions:

1. is it compulsory for employer to get registered with PF?
2. in case it is compulsory to get registered, and none of the employees want a pf deduction, what will be the penalty for the employer for non registration?
Asked 2 years ago in Labour from Ahmedabad, Gujarat
1) any organization employing more than 20 persons is necessarily required to get registered with the EPFO.

2) It is mandatory to own a EPF account if you are in job and draws a salary of up to Rs.15,000 per month. EPF is optional for individuals drawing salary more than Rs.15,000 per month.

3) Irrespective of type of organization (except the exempt categories) be it proprietorship, partnership firm, LLP or company, etc., if the number of employees exceed 20 during any time of the financial year, registration with EPFO is mandatory.

4) under section 14B provident fund commissioner has power to impose damages on employer for default in payment of contribution to the fund 
Ajay Sethi
Advocate, Mumbai
46645 Answers
2759 Consultations

5.0 on 5.0

1. For a company employing 20 or more employees on salary, the PF deduction is mandatory for a person whose salary is equal to or more than 6500. The amount deducted is fixed to 12% out from Basic Salary deducted both from the employee and the employer's share. If the employee’s emoluments exceed 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.

2. Action can be taken by Regional Provident Fund Commissioner in whose jurisdiction (i) employee worked (ii) employer is having head office (iii) contractor is having head office.
Ashish Davessar
Advocate, Jaipur
23092 Answers
639 Consultations

5.0 on 5.0

The  EPFO coverage rules for your information:

Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.

Co-operative Societies, employing 50 or more persons & working without the aid of power.

Establishments not coverable statutorily can come under the coverage of the Act statutorily.

An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.

Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number

PF is must for un exempted establishments under the act Upto 6500 contribution is mandatory above 6500 is voluntary

The employer not following the PF rules may be penalised as per rules meant for this purpose.
T Kalaiselvan
Advocate, Vellore
36786 Answers
403 Consultations

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