A&A
February 25, 2021
The EPF Act is an act that provides for the institution of provident funds, pension fund and deposit-linked insurance fund for employees in factories and other establishments and vide section 5 provides for a welfare scheme for the establishment of provident funds under the Act for employees or for any class of employees and specify the establishments or class of establishments to which the said scheme shall apply i.e. the EPF Scheme brought into force to secure a better future for employees enacted by the Government of India.
With the promulgation of the EPF Act, a statutory benefit is available to the employees post-retirement or when they leave the services. In the case of deceased employees, their dependents will be entitled to the benefits.
Under the EPF Scheme, both employers and employees must make their contributions to the Employees’ Provident Fund (EPF). The interest earned on the amount is credited to the EPF account and is available to the employee at the time of retirement or exit from the employment provided certain conditions are fulfilled.
The administration and management of EPF is carried out by the Central Board of Trustees (CBT) established by the Central Government consisting of representatives of the government, employers, and employees.
The Employees' Provident Fund (EPF) Act and EPF Scheme have a significant impact on organizations and their employees, particularly with regards to the pf applicability number of employees. The EPF Act is applicable to every establishment which employees 20 (twenty) or more persons and every such employer shall be required to be registered under the EPF on the government website ‘Employee Provident Fund Organisation (EPFO)’.
The promulgation of ESI Act envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury suffered during the course of the employment resulting in loss of wages or earning capacity. The ESI Act also guarantees reasonably good medical care to workers and their immediate dependents. Following the promulgation of the ESI Act, the central government set up the ESI Corporation (“ESIC”) to administer the scheme.
In view of the foregoing, the Company must ensure whether it falls under the purview of the acts in question. In the event, the acts are applicable to the Company, the Company should comply with its provisions in its letter and spirit. The Company may always choose to provide better benefits to its employees over and above the benefits provided under the acts in question.
Employees whose salary is at least 15000 are eligible to register for a provident fund (PF) according to the relevant norms and guidelines.
PF is applicable to employers who have at least 20 employees. This requirement is mandated by the Employees' Provident Funds and Miscellaneous Provisions Act (EPF Act).
[1] https://www.epfindia.gov.in/site_en/FAQ.php
[2] FIRST APPEAL NO.143 OF 2012
Comprehensive Guide to Employee Leave Policy in India
View MoreThis article will be analyzing the scope of maternity benefit to be provided by the employers to female employees employed on contractual basis for a fixed term engagement.
View MoreThe applicability of labour laws to startups in India is a complex consideration influenced by factors such as the size of the workforce, the nature of the business, and the geographical location of the startup
View MoreWe use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below. Read more...
We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below. Read more...
Comments
Post A Comment
Your email address will not be published *