Applicability of provident fund act

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Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2016 PF Act applicable to Companies employing 20 or more persons. In our company total number of employees 65. But, only 5 persons' salary is below 15K. All others' salary is more than 15K & therefore they fall under excluded category.
1. Is PF Act applicable now?
2. If management increases those 5 employees' salary more than 15K, will then PF Act be not applicable to our company?
Request experts to kindly clear my doubt.

CA Ashish Joshi

CA Ashish Joshi (Expert)

19 March 2016 "Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

>> Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette
>> Employing 20 or more persons..."

Here, there is no mention of any such condition related to salary or remuneration for applicability purpose. The act applies to any organisation, stated in the act, which employs 20 or more persons regardless of salary drawn. (this strength of 20 may be different for cinema theatres, etc.)

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2016 Thank you Sir. I need to convince my reporting authority that even if all the employees fall in excluded category as mentioned in EPF Scheme, the Act becomes applicable to the Company when number of employees are 20 or more. If you can suggest any book where this explanation is given or any precedent supporting this, that will be a great help.

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