Can Employers Manage a Group Provident Fund Without EPF Registration? Seeking Clarity

Dear All,

I have heard that big organizations have a kind of Group Provident Fund, where the employer only maintains employees' PF contributions, which are then paid to the employee when they leave the company. I am seeking clarification on this information. Can an employer maintain such a fund? If so, should the organization be registered under EPF or not? Is there any possibility of getting an exemption from registering under EPF if we maintain such a fund?

Regards,
Vishwanath

That's a really good question. I know that several big companies maintain a Provident Fund Trust but not a Group Provident Fund. Could you please clarify this for me?

Regards,
Ramkishore

Dear Vishwanath,

I don't know the details of the above scheme. But as per Section 27 of the EPF & MP Act 1952, exemption from the operation of the scheme/s framed under the Act to an establishment, to a class of employees, and to an individual employee, as the case may be, may be granted if the said employees are covered with equal or better benefits.

Abbas. P. S