Hello All, We are a Small Company based in Chennai. We have 4 Employees in Chennai and 3 Employees working in Delhi. We have planned to recruit 15 new employees to be located in Chennai. All of the Existing employees and the planned to be employees have and will salary more than 15,000 Pm. This makes all our employees fall under non-eligible employees for PF.

My Question is

1) Do we Still need to enrol under PF and provide any statement/document that all employees are non-eligible employees.

2) Do Employees need to give any self-declaration that they understood that they are non-eligible employees and not interested in any Voluntary Contribution.

Thanks in advance.
Shilpa

From India, Chennai
KK!HR
1534

With the addition of 15 employees at Chennai, your total strength would be 22 and EPF Coverage has to be there. The fact that three of them are located at Delhi may not help if they are controlled and paid salary from Chennai.
It is clarified that if these employees were already a member of EPF before joining you, they will have to continue to be so though they are in receipt of salary above the ceiling limit as per PF Act. (Presently >Rs. 15,000 PM). But if they are new to employment as such then they need not be member.

From India, Mumbai
Below are the answers to your questions.

1 )

Even if there is no eligible employees immediately when the employee count reaches 20 you will have to register your company under the EPF Act. While applying mention the eligible employees as zero.

2)

You need to ask the employees to produce form II which is an undertaking that they are not enrolled as an EPF member earlier along with other details. If any of the employee where already a member of the EPFO scheme then that employee needs to be enrolled under your EPF company registration.

From India, Chennai
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