Understanding EPF Registration: Are Minimum Slab Limits of 20 Employees Universal Across Industries?

Dear all,

Are there minimum slab limits of 20 employees applicable to all industries? Kindly clarify the compulsory registration of all industries in EPF.

With regards,
L. Jha

I would like to tell you that EPF is applicable to salary up to 6500 or less (means Basic+DA per month) at the time of their joining, and it is applicable to organizations having 10 or more employees now, not 20.

In case both the above terms are not complied with, then voluntarily an organization can avail of this facility. They can be part of the EPF by requesting with the EPF organization.

Once an employee is registered under the EPF organization, then he/she has to deduct PF from their salary even if the salary is above 6500/month (for example; an employee joined the organization with a salary of 5000 per month and is liable to deduct PF amount from their salary. After two years, their salary has been revised to 10,000 per month. However, as a principle, PF is not applicable because they crossed the 6500/month limit, but there is a law limit to restrict this act. They still remain a part of PF, and PF has to be deducted from their salary until they are working in the same organization).

Dear Nitesh,

Under which section is it mentioned that if the gross is Rs 6550/- or above, then EPF is optional?

Regards,
Kanchan

10 Employee Applicable:

The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) on Saturday, 5, 2008, approved the reduction of the threshold limit for establishments covered under the Employees' Provident Fund and Miscellaneous Provisions Act (EPF & MP Act), 1952. With this, establishments employing even 10 people will be covered under the Act and would have to contribute towards Employees' Provident Fund accounts as against the existing 20, barring cooperative institutions functioning without power, where the limit has been reduced from 50 to 20 employees.

This decision was approved at the first meeting of the newly constituted EPF Board which is led by the Minister of State for Labour and Employment (independent charge), Oscar Fernandes. This is the first time in 48 years that the threshold limit has been changed.

And it is not gross. It is ₹6500/- (Basic+D.A.). Above that, it is up to the employer.