EPF Coverage Limit Reduced To 10

Hi All,
EPF Coverage limit has been reduced to 10 employees from 20 employees. However, Judjement copy is awaited.
Kindly visit this topic for further details
Thanks,
Mehul K.
Serve HR Corporate Services
Labour Laws Consultants & Practioners
9892188218
Mumbai Based Consultants operating in Maharashtra, Goa & Gujarat

05/07/08

Government on Saturday, 5th July 2008 approved the proposal of bringing industries with ten or more employees under the ambit of Employee's Provident Fund (EPF) against the earlier limit of twenty or more workers.

A high-level meeting of board members of central provident fund chaired by Union Labour Minister Oscar Fernandes decided that the industries with ten or more employees will have to contribute towards the EPF accounts from now on.

"The ceiling for the industries has been revised and now any industry with ten or more employees will have to deduct EPF money of the employees," Union Labour Minister Oscar Fernandes said.

Currently, ONLY Schedule industries with twenty or more employees are covered under the ambit of EPF. Now as per new directions any Industry or Establishment or Commercial Establishment or Factory or Charitable Institute or Education Institute or Shop or IT Establishment or Research Centers employing more than 9 employees will be covered under the EPF Act.

Please note the same and inform to all concerns.
Yours truly,
HIREN LAXMICHAND CHHEDA
9821078457
13, POONAWALA BUILDING, ELPHISTIN ROAD, PAREL TT, MUMBAI – 400 012.

Hai All,
I want to know rules of EPF.what is the threshold limit. If employee getting Rs.6500/-. what is the contribution of Employee & Employer for above Salary? and if employee getting more 7000/-. what is the Contribution of Employee & employer? kindly clarify .

Dear Rajesh,
The EPF contribution limt is 6500/-. But if the employer is ready to pay his contribution more than the celing of EPF then we can pay on actual Basic.
for Exe: A's Basic Salary is 7500/-
case: 1) if employer is pay the contribution on 6500/- only then 780/- is from employee and 780/- is from employer.
Case: 2) if employer wants to pay his contribution on actual basic then the contribution from employee is 900 and from employer 900.

Provident Fund : Is it optional? No it is not optional.

First issue is whether the employee is covered under the Employees Provident Fund and Misc Provisions Act. If an employee joins an organization (covered under the Act) as a first job or subsequent at a pay of Rs 6500 or less, he is covered under the Act. Once covered, he remains covered under the Act unless he has withdrawn from the Provident Fund finally which he can do if he is t less than six months. Once he has finally withdrawn, he will be covered or not depending on his pay is less than or more than Rs 6500. If he is covered under the Act, he has no option, he has to be covered.

Let's say he is not covered under the Act; in that case it depends whether the company has provident fund for such employees who are not covered under the Act. These PFs are approved by the Income Tax and have income tax benefits for the members. Condition of these PFs is that all employees coverable will be covered. Again, the employee has no option. If the company has such PF, the employee has to be covered.

for pf coverage salary 21000/- means gross or Bsic+da ?