Understanding EPF Rules for Small Private Limited Companies: Is It Mandatory for Less Than 20 Employees?

I have to know the EPF new implements in an already registered Private Limited Company. Is it compulsory to apply the EPF in companies with less than 20 employees in a private limited setup? What is the EPF registration process for volunteers? Please explain immediately.

It is not mandatory to comply with the EPF Act 1952 until the employee strength (including contract laborers engaged in any outsourced work at your premises) reaches twenty or more. However, if the employees and employer mutually agree and approach the Chief PF Commissioner for voluntary coverage under the Act, the CPFC may, by notification in the official gazette, extend the provisions of the Act. The relevant provisions are quoted below:

Application of the EPF Act

(3) Subject to the provisions contained in section 16, it applies:
(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed, and
(b) to any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf:

Provided that the Central Government may, after giving not less than two months' notice of its intention to do so, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified in the notification.

Voluntary Application of the EPF Act

(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.

Dear KK HR sir,

There are only nine employees in my firm, and we want to voluntarily register for EPF. Please let me know the detailed procedure to be followed for voluntary coverage of EPF.

Thanks in advance,
Akhil

There is a provision in the EPF Act 1952 for voluntary coverage under the act. You have to make an agreement between the employees and the employer for voluntary PF coverage, and it could be applicable from the date of the agreement. Apply to the Chief Provident Commissioner, EPFO, New Delhi, for agreeing to the request and allotting PF code and publish it in the Gazette. Section 1(4) of the act refers and is already discussed in detail in a similar topic of discussion in this forum.