No, the total CTC does not automatically increase, but the statutory contributions will rise. The law mandates that the 'Wages' component must be ≥50% of CTC. We will restructure your CTC to meet this rule, for example: The 20% difference (from 30% to 50%) will be shifted from non-statutory allowances (like Special Allowance or HRA component) to the Basic Pay. This increased Basic Pay will then increase the PF contribution (both 12% Employee & 12% Employer share). The overall CTC remains the same, but the monthly take-home salary will be reduced due to higher PF deductions, and the employer's gratuity liability increases. We help manage this communication and restructuring.

This is a complex, high-risk area. The Karnataka High Court has struck down the special provisions that mandated PF on the full global salary of all IWs. However, the ruling is likely to be appealed by the EPFO. As of today, the safest, risk-mitigated strategy requires an assessment based on the employee's country (SSA vs. Non-SSA) and ensuring your contribution method aligns with the latest, but often conflicting, directives to protect your company from future litigation. We provide a definitive contribution strategy for your International Workers.

Our process involves using optimized, error-free data formats to minimize system rejection. We monitor the operational status of the Bangalore EPFO portal continuously and leverage our expertise in filing during low-traffic periods. This minimizes the risk of late filing penalties (Damages under Section 14B of the PF Act), a major financial risk for compliance teams.

Yes. PF registration is mandatory if you have 20+ employees (any establishment) or 10+ employees (factories). All employees count—full-time, part-time, contractual. Registration must be done within 1 month of crossing the threshold. Penalty for non-registration can reach ₹5,000–1,00,000 + backdated PF + interest. Even if everyone earns >₹15,000, registration is still mandatory. In Bangalore, PF compliance is also checked during investor due diligence and can impact funding.

PF cost includes: Employer PF at 12% (3.67% EPF + 8.33% EPS) capped at ₹1,800/employee/month + employee contribution ₹1,800 (deducted from salary). Consultant fee varies from ₹5,000–20,000/month. PF registration one-time cost is ₹10,000–15,000. For 50 employees (₹15K basic): Employer PF = ₹90,000 + consultant fee ≈ ₹95,000/month. This ensures legal compliance, avoids penalties, and strengthens employee benefits.

Consequences include: Interest at 12% p.a, penalty of ₹5,000–1,00,000, possible bank account attachment, employee complaints triggering inspection, and prosecution for repeat offenses (up to 3 years imprisonment). Example: ₹1,00,000 late by 1 month → ~₹1,000 interest + ₹10,000–50,000 penalty. We file by 12th of every month to guarantee zero late fees.

Yes, by legally optimizing Basic + DA since PF applies only on that. Lower Basic (while increasing HRA/Allowances) reduces PF outgo. Example: CTC ₹30,000 → Basic ₹30K = PF ₹1,800. If restructured to Basic ₹12K, PF becomes ₹1,440 (₹360/month saving per employee). This must be structured legally—EPFO can challenge fake structures. We handle compliant PF-optimized salary design.

Timelines vary: 7–15 days if UAN, Aadhaar, bank are updated; 2–6 months if previous employer hasn't filed ECR; 1–2 months if rejected due to errors. India average: 2–3 months. With our process (pre-verification + follow-ups): 12–18 days. Fastest we achieved: 5 days. Bangalore’s Koramangala PF office allows physical escalation if needed.

UAN is a lifetime 12-digit employee PF number. It enables online PF transfer, self-withdrawal, and passbook access. Without UAN, PF transfers take 6+ months and require employer approval. UAN must be generated within 1 month of joining. We generate, activate, link Aadhaar/PAN/bank, and enable PF passbook within 7 days.

Yes, in certain cases. Full withdrawal: 2+ months unemployment, retirement, moving abroad. Partial withdrawal: medical, education, marriage, housing loan, etc. If withdrawn before 5 years, PF becomes taxable. Online process takes 15–45 days. We file and track claims, including employer approvals within 72 hours.

EPF is the employee’s savings bucket (100% refundable + 8.15% interest). EPS is pension (created from employer's 8.33%, not withdrawable, paid as monthly pension after 58 if 10+ years service). Current max pension ≈ ₹7,500/month unless opted for higher pension scheme. We also help employees assess higher pension eligibility.

Required: PAN of company, Incorporation/Partnership deed, address proof, bank details + cancelled cheque, director/partner KYC, employee list, DSC of authorized signatory, board resolution, official email/mobile. Timeline: 7–15 days for PF code, 2–3 weeks for full activation. We handle 100% end-to-end registration.

Mandatory for: 10+ employees in factories or 20+ in other establishments where any employee earns <₹21,000. Contribution: Employee 0.75% + Employer 3% of full salary. Benefits include medical, maternity, disability, sickness pay. Bangalore has multiple ESI hospitals. Non-registration penalty: ₹10,000 + backdated payment.

Inspection checks coverage, PF calculation, ECR filings, challans, salary records, Form 6/12A, attendance, offer letters. Common issues: non-coverage, PF miscalculation, delayed filings. Penalties can go up to ₹5 lakhs. We run mock audits, keep all records ready, and represent during inspection so you face zero stress.

One PF code works for all locations within one state (Bangalore + Mysore = 1 code). Different state offices need separate codes (Bangalore + Hyderabad = 2 codes). For scattered remote employees across India, many companies still use HQ code—common practice. We manage centralized compliance even with multiple PF codes.

It allows pension calculation on actual salary instead of ₹15K wage ceiling but requires extra contribution, including past contributions. It benefits long-term high-income employees (20+ years runway to retirement). Current window is closed, but legal cases are ongoing. We do case-by-case eligibility analysis.

Penalties include: 12% interest (Section 7Q), ₹5,000–₹1,00,000 damages (Section 14B), up to 3 years imprisonment (Section 14), and non-registration penalty up to ₹5 lakhs. Example: ₹1,00,000 delayed 6 months → ₹6,000 interest + ₹20,000 penalty. In Karnataka, penalties are negotiable with proper representation. Prevention is the best solution—zero penalties is our standard.

DIY works if you have <20 employees and stable payroll. Consulting is worth it when you have 50+ employees, frequent exits, salary structuring, or want zero risk. We provide: salary optimization, PF transfers, claim handling, notices, inspections, error-free filings, time savings (20–40 hrs/month), and penalty prevention. ROI averages 10x—₹1.2L/year service cost can save ₹10–15L through compliance, error reduction and optimized payroll.

Office of the Addl. Central Provident Fund Commissioner (West Bengal, NER) DK-Block, Sector-II, Salt Lake City, Karunamoyee, Kolkata- 700 091.