What Happens if CPFC Skips Gazette Notification for Voluntary EPF Registration?

Voluntary Registration Under EPF & MP Act, 1952

Section 1(4) of the EPF & MP Act, 1952 contains provisions regarding the voluntary registration of establishments under EPF. It states that the Central Provident Fund Commissioner may, by notification in the Official Gazette, apply the provisions of this Act to that establishment from the date of such agreement or from any subsequent date specified in the agreement.

Questions on Notification Process

Now, my question is: what will happen if the CPFC does not notify the establishment in the official gazette? What is the time period for notification in the official gazette?

Till the time CPFC does not notify in the official gazette, the establishment cannot commence the coverage and start deducting PF Contribution. No compliance is called for until such time. There is NO fixed time period for notification in the official gazette. It is only after the proposal for voluntary coverage is approved by EPFO/CPFC that it will go for Gazette publication, and this is known to take time as they are very sluggish in reacting to such initiatives.

Dear Sir,

Thank you for your reply. In the context of your response, I would like to understand the meaning of voluntary coverage and the EPF Code provided by EPFO to the establishment if the establishment is unable to initiate coverage and begin deducting PF contributions until the CPFC notifies in the official gazette.

Could you please clarify this for me?

Thank you.

O.P. Maurya

The Section 1(4) of EPF Act 1952 holds the key in this issue, and the intent of the Act is very clear from the provision itself, as follows:

(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 16, where it appears to the Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.

So the question is whether there was a formal agreement between the employees and the management on the introduction of EPF and also whether such a mutual resolve was informed to the Central PF Commissioner. In case you have done so, the deduction could be made from that date or else it would be the date as fixed by the CPFC. In any case, it would be worthwhile to follow up actively with CPFC on the early introduction of the Scheme.

Dear Sir/Madam,

Thank you very much for providing such valuable information. Under voluntary coverage in EPF, an agreement is made and uploaded on the site before the allotment of the EPF Code.

Please let me know once the EPF code is allotted to the establishment. Will the establishment be bound by the EPF Act and its provisions immediately, or will this come into effect after notification by CPFC?

With Regards,

OP Maurya

From the provision of the Act, it would be made applicable to the establishment by notification in the Official Gazette from the date of such agreement or from any subsequent date specified in such agreement.

So, the notification is to specify the date of applicability, and that would depend on what you have sought as the effective date of coverage. Since you have been allotted a code, you can pursue with CPFC to initiate coverage from the date of the agreement.

Dear Sir/Madam,

Thank you very much for providing such useful information. In relation to the above, I would like to request you to shed light on the issue that, although the EPFO has made provisions for voluntary coverage, the area inspector insists on the compulsory coverage of establishments.

Thank you,
O.P. Maurya