Is Having 20 Employees a Must for EPF Benefits? Seeking Clarity for Our 12-Member Team

DivyaE
Hi Friends,

Please clear my doubt. Is the number of employees being a minimum of 20 compulsory to get the benefits of EPF? Currently, we have 12 staff members.

Regards,
Divya
capricornabhi
Dear Divya,

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

1) Every establishment engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette. (List of Industries/Establishments)

2) Employing 20 or more persons.

3) Cinema Theatres employing 5 or more persons.

The Act does not apply to:

Co-operative societies employing fewer than 50 persons and working without the aid of power. 16(1)(a)

The establishment to which this Act applies shall continue to be governed by this Act, even if the number of employees falls below 20 at a later date. [1(5)].

16(1)(b) Establishments under the control of state/central Govt. & employees who are receiving benefits in the nature of 16(1)(b) contributory P.F. or old-age pension as per rules framed by the Govt.

16(1)(c) Establishment set up under any central, provincial, or state act and the employees who are receiving benefits in the nature of contributory P.F. or old-age pension as per rules.

Voluntary Coverage

If any establishment does not satisfy the above two conditions for coverage and if the employer and the majority of employees are willing, the Act may be applicable to such establishment (voluntary coverage under section 1(4)).

So if the employees of your company and the employees want to be covered under the PF Act, then you can.

Regards,

Abhishek
bb.bhushan
It is true that it is possible to get PF coverage even if the number of employees is below 20. However, the department does a check on the intention of the employer who makes a request for voluntary coverage. It is not as easy as it is in the case of statutory coverage.

Bharat
Prathamaditkumar
We are a computer center with a rotational staff structure, where employees work for 4 to 5 months before leaving. The average number of staff members at any given time is around 15, occasionally reaching 20 for a day or two. Our company is 2 years old and registered for ESI, with ESI payments starting from January 2012. Despite incurring a loss last year, we have filed our income tax return.

EPF Obligations and Deferral

Are we obligated to pay EPF? Can we postpone or defer it? If so, what records do we need to maintain? Your guidance on this matter would be greatly appreciated.

Please advise.

Regards.
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