Any establishment which employs 20 or more employees except apprentice and casual labourers, but including contract labour who is in receipt of basic salary up to Rs. 6500 p.m. is covered by the Act. Provident fund is the collective contribution @ 12% or more made by the employer and employee during the lifetime of service of an employee. This collected amount are deposited with the PF department and returned to the employee along with interest during his service after attaining a certain age of 54 up to a maximum ceiling limit set by the government or during his retirement to provide monetary benefits. There are various kinds of provident funds like Statutory, Voluntary, Recognised, Unrecognised, Public Provident Fund.
This is a regional license and the process may vary state-wise. The minimum number of employees for provident fund registration should be 20. Employees drawing basic salary up to Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund.
Any document proving the existence of a business setup (MOA/AOA/Partnership deed/Registration certificate etc)
Any document proving the date of set up of entity (First sale invoice/License/First assessment order etc)
Employee who while joining the organization has a basic salary above Rs 6501/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organization is less then Rs 6501/- but after some period of time their basic increases above Rs 6501/- have to compulsorily continue to be member of provident Fund.
Yes, if an employee desires to contribute an amount at a higher rate of interest than 12 % of basic salary then they can do so but it does not become obligatory for the employer to pay anything above than 12%. This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted.