Is My New Company Eligible for a 5-Year PF Coverage Exemption? Need Clarity Before Officer's Visit!

My company was incorporated on 23.02.2004. We applied for PF coverage on March 10. Is there any provision in any act that a new company is eligible to get an exemption for the first 5 years since inception? In our case, the company reached the threshold of 20 employees in March 2010, but the Enforcement Officer is insisting that we obtain coverage from Dec 08 since the employee strength from Dec 08 was 19. I have learned from another source that every new company is eligible to receive an exemption from coverage for the first five years. Please let me know at the earliest. The officer will visit again on 8th June.

Pratyay Sengupta.

The infancy protection given to new establishments for three years (not five years) for coverage of EPF was lifted long back. Therefore, an establishment will be covered as of the date on which the employees, including casual laborers and employees engaged through contractors, exceed 19. During the inspection, if the Enforcement Officer had observed that in December 2008 your establishment had engaged 20 employees, PF will be covered since then retrospectively. If so, you will have to pay the PF with retrospective effect from that date in full as arrears. Remember that you have to pay the arrears of both the employees' share as well as the employer's share.

If you have been asked to meet the officer on the 8th with relevant documents, meet him and ask him to put the enforcement effective from the current date. If the Officer is pleased, you can save a lot of money. Try it.

Regards,
Madhu.T.K

The infancy protection given to new establishments for three years (not five years) for coverage of EPF was lifted long back. Therefore, an establishment will be covered as on the date on which the employees, including casual laborers and employees engaged through contractors, exceed 19. During the inspection, if the Enforcement Officer had observed that in December 2008, your establishment had engaged 20 employees, PF will be covered since then retrospectively. If so, you will have to pay the PF with retrospective effect from that date in full as arrears. Remember that you have to pay the arrears of both the employees' share as well as the employer's share.

If you have been asked to meet the officer on the 8th with relevant documents, meet him and ask him to put the enforcement effective from the current date. If the Officer is PLEASED, you can save a lot of amount. Try it.

The infancy protection given to new establishments for three years (not five years) for coverage of EPF was lifted long back. Therefore, an establishment will be covered as of the date on which the employees, including casual laborers and employees engaged through contractors, exceed 19. During the inspection, if the Enforcement Officer had observed that in December 2008 your establishment had engaged 20 employees, PF will be covered since then retrospectively. If so, you will have to pay the PF with retrospective effect from that date in full as arrears. Remember that you have to pay the arrears of both the employees' share as well as the employer's share.

If you have been asked to meet the officer on the 8th with relevant documents, meet him and ask him to put the enforcement effective from the current date. If the Officer is PLEASED, you can save a lot of money. Try it.