Should a company, registered with the Employee Provident Fund Organisation (EPFO) via the Ministry of Corporate Affairs (MCA), be obligated to deposit the Employee Provident Fund (EPF) contribution of its employees, even when the total staff strength is less than 20?
From India, Mumbai
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From India, Mumbai
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Employee Provident Fund (EPF) Obligations
According to the EPF & MP Act, 1952, it is mandatory for employers to contribute towards the EPF if they employ more than 20 workers. However, businesses with fewer than 20 employees can also voluntarily register with the EPFO. Once registered, the company becomes obligated to deposit the EPF contributions, regardless of its staff strength.
Steps to Deposit EPF
1. The employer must first calculate the EPF contribution, which is 12% of the employee's basic salary and dearness allowance.
2. The amount should be deposited in the EPF account of each employee before the 15th of the following month.
3. The employer must then submit a monthly return to the EPFO, detailing the contributions made. This can be done through the EPFO's online portal, https://www.epfindia.gov.in.
Please note that failure to comply with these obligations can result in penalties under the EPF & MP Act, 1952. Therefore, even if your company employs fewer than 20 people, if you are registered with the EPFO, you are required to fulfill these obligations.
From India, Gurugram
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80According to the EPF & MP Act, 1952, it is mandatory for employers to contribute towards the EPF if they employ more than 20 workers. However, businesses with fewer than 20 employees can also voluntarily register with the EPFO. Once registered, the company becomes obligated to deposit the EPF contributions, regardless of its staff strength.
Steps to Deposit EPF
1. The employer must first calculate the EPF contribution, which is 12% of the employee's basic salary and dearness allowance.
2. The amount should be deposited in the EPF account of each employee before the 15th of the following month.
3. The employer must then submit a monthly return to the EPFO, detailing the contributions made. This can be done through the EPFO's online portal, https://www.epfindia.gov.in.
Please note that failure to comply with these obligations can result in penalties under the EPF & MP Act, 1952. Therefore, even if your company employs fewer than 20 people, if you are registered with the EPFO, you are required to fulfill these obligations.
From India, Gurugram
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No, not at all. If your number of employees is less than 20, you need not pay contribution now. You can start paying EPF contributions only from the date on which your number of employees became 20.
ESI and EPF registration are automatic when the establishment is a company. But this does not mean that an establishment with less than 10 employees or 20 employees should start contributing to ESI and EPF respectively. You can start coverage from the date from which the number of employees in your establishment reaches 10 or 20, as the case may be. Only thing is that you need not register again but should use the same registration number for starting contributing.
From India, Kannur
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ESI and EPF registration are automatic when the establishment is a company. But this does not mean that an establishment with less than 10 employees or 20 employees should start contributing to ESI and EPF respectively. You can start coverage from the date from which the number of employees in your establishment reaches 10 or 20, as the case may be. Only thing is that you need not register again but should use the same registration number for starting contributing.
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPF - Composite Form No. 20-10D-5IF_Blan k.xls
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(Fact Checked)-Your information is correct! EPF contributions start when staff strength reaches 20. Appreciate your detailed explanation. (1 Acknowledge point)