The Government Information Center

Irrespective of the nature and the category of your business, an employer of even one employee legally bound to pay contributions to the Fund except the Govt. Dept. who has pensionable employees, Public Corporations, Authorities, Boards, Local Authorities etc. and the private sector organizations, Institutions are liable to pay contributions to the Fund.

Domestic servants in any household

Social Service Institutions which provide training to orphans etc.

Charitable Organizations which less than 10 employees if the number of employees over 10 such institutions are liable to pay

Institutions carried out by family matters

Institutions giving industrial training to orphans, deaf etc.

All employers in public sector institutions whose employees are not eligible to the Govt. Pension Scheme.

All employers in the private sector irrespective of the no. of employees employed.

All employers in public and private sector who are maintaining approved Provident Fund accounts for their employees.

The Act does not applicable for Govt. & Local Govt. employees other than the employees do not eligible for Govt. pension.

Establishments where the Directors and Partners are the only members of the business.
 

Every employer has the responsibility of paying the contribution for each & every employee. No employee can deduct the contribution from the employees earnings/salary.

The Total earnings should include the following

Salary, wages or Fees

Cost of Living allowance, Special Living allowance and other similar allowances

The cash value of cooked or uncooked food supplied by the Employer to the Employee determination of such values will eventually be made by the Commissioner of Labour

Food allowance

Any other kinds of remuneration that may be specified

Payments in the form of discounts (commissions), piece rate payments and contract b