Understanding PF and EPF Requirements for Exempted Establishments: What Changed After 1995?

Hello Everyone,

I am looking forward to help from all of you. If an establishment is exempted, then why does that establishment need to have forms related to PF and EPF for its employees? Also, I was going through the EPFO site where I found some laws related to a new scheme. It states that if the employee completes 58 years of age between 93-95, then he could avail certain facilities. My question here is, are there any changes in the PF act after 95, and if yes, where can I find that information?

Please let me know if my question is unclear.

Looking forward to positive and early replies.

Regards,
Neha Khale

Understanding Exempted and Non-Exempt Establishments

Please define the exempted establishment and non-exempt establishment, and help me understand the main differences between these types of establishments.

Thank you.

Understanding Exempted and Unexempted Establishments

Unexempted establishments are those to which the Employees' Provident Fund & Miscellaneous Provisions Act, 1952, is applicable. Exempted establishments are those where the employer forms their own Provident Fund Trust for the benefit of their employees. For example, Bajaj has its own trust; therefore, it is an exempted establishment.

Regards

An exempted establishment does not mean that the establishment is exempted from the provisions or applicability of the EPF & MP Act, 1952.

What is an Exempted Establishment?

An exempted establishment refers to an establishment that is permitted to form its own Provident Fund Trust for the benefit of its employees. The employer must execute the Trust Deed, prepare the Provident Fund Rules, and nominate trustees from among its employees to administer and manage the Trust.

Process of Forming a Provident Fund Trust

Upon the formation of the Provident Fund Trust, the employer must obtain recognition for this Trust from the Commissioner of Income Tax and then apply to the RPFC office for exemption from the provisions of the EPF & MP Act, 1952, and the related schemes.

Role of Trustees in an Exempted Establishment

The employer makes monthly contributions to the Trustees, who are responsible for the day-to-day management and administration of the Trust, including making necessary investments as per the guidelines laid down in Rule 67 of the Income Tax Rules, 1962.

In an exempted establishment, the PF fund is not managed by the RPFC.

Best regards,