Is EPF Required for a New Company with Over 20 Employees in Pune?

Does EPF apply to a new company where more than 20 people are working? It is an inverter battery manufacturing unit situated in Pune, Maharashtra. If yes, then please tell me the section of the act.

If you have more than 20 employees, all the acts are applicable to your company. Complete labor laws are applicable.

Regards

Any organization that employs 20 or more individuals falls under EPF coverage. Therefore, you should contact the EPFO in your area for EPF coverage. Your organization is also eligible for ESI coverage. If it is already registered, that is excellent. Otherwise, please proceed with ESI registration as well.

Thank you.

As per the information given by you, you are covered under the EPF and Miscellaneous Provisions Act, 1952, and the scheme framed under the act. For specific sections, please refer to Section 1(3)(a) and Schedule I to the Act.

Industry Engagement

Your factory is engaged in the industry of manufacturing Electrical, Mechanical, or General Engineering products as notified in Schedule I.

Regards,
Adv. K. H. Kulkarni

The company was formed in April 2013. Are we eligible for the infancy exemption?

No, there is no infancy period available now. It was withdrawn in 1998, so EPF is applicable from day one.

Based on the information provided by you, your establishment is liable to be registered with the EPFO from the date the number of employees crosses 20. Referring to Section 1(3)(a) of The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 - "The Act applies to every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed."

EPFO Registration for Electrical Mechanical or General Engineering Products

Your establishment falls under Entry (3) of Schedule I - Electrical Mechanical or General Engineering Products. You will need to approach the EPFO office in Golibar Maidan, Pune, for the registration process. For any assistance regarding registration, you can get in touch with me.

Regards

I joined the office in 2001 when we were only 6-7 employees. Out of them, only I am still working in this office along with another 30 employees. However, our office introduced PF in 2005 for all employees, including me. Is this right? I believe I am eligible for PF from the actual date of joining. For your information, in our group gratuity scheme with LICI, the office has mentioned the actual date of joining, i.e., the year 2001. Please suggest.

Thank you.

Regards.

The PF Act is applicable from the date when your company had 20 or more persons working. It seems that in 2005, such an event occurred, and so PF was started by your company. Your conception that it should be from 2001 has no basis. In your case, the date of your joining the company and the date of joining the PF scheme will be different, and there is nothing wrong with that.