KK!HR
Management Consultancy
Om Prakash Maurya
Professional

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Section 1 (4) of EPF & MP Act, 1952 contains provision regarding voluntary registration of establishment under EPF, whereby it is mentioned that Central Provident Fund Commissioner may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.
Now my question is what will happen when CPFC does not notify the establishment in the official gazette. What is time period for notification in the official gazette.

Till the time CPFC does not notify in the official gazette, the establishment cannot commence the coverage and start deducting PF Contribution. No compliance is called for till such time. There is NO time period fixed for notification in the official gazette. It is only after the proposal for voluntary coverage is approved by EPFO/CPFC, that it will go for Gazette publication and this is known to take time as they are very sluggish in reacting to such initiatives
Dear Sir,
Thanks for your reply, in context of your reply I would like to know, then what is meaning of voluntary coverage and EPF Code provided by EPFO to the establishment if the establishment cannot commence the coverage and start deducting PF Contribution, Till the time CPFC does not notify in the official gazette.
Please clarify
Thanking you
O.P.Maurya

The Section 1(4) of EPF Act 1952 holds the key in this issue and the intent of the Act is very clear from the provision itself, as follows:
(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 16, where it appears to the Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.]
So the question is whether there was a formal agreement between the employees and the management on introduction of EPF and also whether such a mutual resolve was informed to Central PF Commissioner. In case you have done so, the deduction could be made from that date or else it would be the date as fixed by the CPFC. In any case it would be worthwhile to follow up actively with CPFC on early introduction of the Scheme.

Dear Sir/Madam,
Thanks a lot for such valuable information, under voluntary coverage in EPF an agreement is made and uploaded on site before allotment of EPF Code.
Please let me know once EPF code allotted to establishment, the establishment is bound by EPF Act and provision or it will be after notification by CPFC.
With Regards
OPMaurya

From the provision of the Act that it would be made applicable to the establishment by notification in the Official Gazette from the date of such agreement or from any subsequent date specified in such agreement.
So the notification is to specify the date of applicability and that would depend on what you have sought as to the effective date of coverage. Since you have been allotted code, you can pursue with CPFC to initiate coverage from the date of agreement.

Dear Sir/Madam,
Thanks a lot for such useful information. In pursuance of the above I would request you to please draw lights on the issue that although EPFO had made provision for voluntary coverage but area inspector insist on compulsory coverage of establishment.
Thanking you
O.P.Maurya

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