EPF Benefits Dilemma: Is It Mandatory for Companies with Less Than 10 Employees?

Hi, Avishek. This is Avishek. I have a query: If the company has EPF registration, but the total employee strength is under 10, is it mandatory to provide EPF benefits to the employees? Please help me in this regard. Also, I request you to provide the circular if possible.

EPF Registration and Applicability

Does your company have EPF registration and an allotted code number by EPFO?

Currently, the EPF Act is applicable only to those establishments included in the schedule, which is part of the EPF Act. According to the new Labour Code promulgated by the Government of India, the EPF Act shall apply to all establishments with a minimum of 20 employees.

Under the prevailing conditions, if the employee strength is reduced below 20, the EPF Act will continue to be applicable. However, according to the new code, if the employee strength falls below the stipulated number and the employer and the majority of employees demand it, they can be exempted from the EPF Act.