Respected Seniors,

I am an employee in a small organization that has just set up our HR department. As a part of the transformation, we are also introducing PF contributions. Currently, only a fixed amount is given as a salary without any PF contribution.

Now, the proprietor wants me to create a salary structure with PF deduction. The company has only 9 employees and has never had 20 employees (which is required for PF as per the PF and Misc. Provisions Act).

I kindly request you to suggest what can be done in this situation.

Waiting for your reply. Any inconvenience caused is highly regretted.

From India, Mumbai
Acknowledge(0)
Amend(0)

Dear Kaddythebeast,

You need to download the "Performa Coverage Form" through the PF internet site. It has all the details and a list of documents to be submitted to the Regional/Sub-Regional PF Office for getting the PF Code.

A few basic things I can suggest to you:
1. Performa Coverage Form
2. Business No. Form
3. List of employees with father's name, designation, date of joining, Gross Salary & Basic Salary
4. One advance PF challan along with DD in favor of Regional Provident Fund Commission
5. Possession Certificate of premises or lease agreement or rent deed (one of any)
6. Proprietor deed or partner deed or memorandum of article (one of any)
7. Pan card of Firm/organization
8. Address proof of occupier
9. Identity proof of occupier
10. First purchase order or sale invoice
11. One canceled cheque having the name of the organization
12. NOC of fire dept.
13. NOC of pollution dept.
14. Latest Electricity bill

Regards,
Baba Naresh

From India, Delhi
Acknowledge(0)
Amend(0)

Thank you, sir, for your help. According to this form, it has a list of employees with 21 spaces for details. There is provision for more than 21 employees, but my doubts about employees fewer than 20 are still unclear. Can you please shed some light on that?
From India, Mumbai
Acknowledge(0)
Amend(0)

Notwithstanding anything contained in subsection 3 of this section or subsection 1 of section 16, where it appears to the Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.

According to this statement, you can make your organization under the PF Act with the consent of all the employees and the employer even if the total number of employees is less than 20. The form will be the same as suggested by Mr. Naresh.

From India, Hyderabad
Acknowledge(0)
Amend(0)

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.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.