6 common PF mistakes, and how to fix them

1. Thinking PF stops below 20 staff

You hire more staff, then some leave, and you stop paying PF.

The fix: once PF applies, it stays, even if you later have fewer than 20 staff. Read PF: who must register.

2. Counting your staff wrongly

Casual staff, staff sent by a contractor and staff who earn above ₹25,000 a month (the PF wage limit) all count towards the 20. Apprentices, the owner and the partners of a partnership firm don't.

Use staff from a contractor? Ask the contractor for proof of their PF payments each month. Who is responsible for those staff can depend on your case, so call us to check.

The fix: count everyone who counts.

3. Thinking staff above ₹25,000 never need PF

Staff who are already PF members stay members, even if they now earn more than ₹25,000 (the limit from 17 September 2026). A new joiner above the limit may be able to join. Call us to check.

The fix: check each person's PF history first. Try our free PF eligibility checker.

4. Paying after the 15th

PF is due by the 15th of the next month. Pay late and you owe interest, and you may also owe damages (a fine).

The fix: pay before the 15th, with a few days spare. Read what paying PF late costs.

5. Not getting new staff their UAN in time

UAN is the employee's PF number. New staff get theirs with a quick face scan on the UMANG app (the government's mobile app). Missing or wrong details can cause problems later, for example when PF is checked.

The fix: get each new employee's UAN and KYC details (ID details like Aadhaar, PAN and bank account) in their first month. We guide them. Read what happens in a PF inspection.

6. Not comparing salaries with the PF you paid

Small gaps between pay and PF can grow over months into a big unpaid amount. You may then owe interest and damages too.

The fix: each month, compare the salaries you paid with the PF you filed and paid. Check the amount with our free PF contribution calculator.