EPF Act Coverage

Does the coverage of establishments under the act (applicability) become mandatory when you employ 20 or more persons irrespective of the fact that all of them are drawing basic pay + DA in excess of Rs.6500/- p.m.?

Hi,
Act of applicability is not depends on the salary, it depends on the strength of Employees 20 or more than 20.
If more than 20 then your registration is mandatory.

Fine. But who is the person to contribute.? As stated all are drawing high Basic/DA & have not exercised an option to be covered. What does the Employer do in such a situation? This is a newly started enterprise

You have to register your organisation under EPFO and may file monthly return as zero because no one is EPF member as of now in your case. Ensure everyone's Basic is beyond the ceiling limit. Also get filled up Form-11 from all members to comply with the said Act.

Dear friend,
The Employees Prtovident Fund Scheme, 1952 and Employees Pension Scheme 1995, shall applicable to the industry ,. factory shops etc where the strength of employees exceeds 20 or more on any one day including staff and workers, either may be a direct t or indirect. The salary is not a criteria for eligibility but exceeds the limits of employees then the act will be applicable. You can approach your nearest Provident Fund Office, and contact Enforcement officer and get it registered with them and then they will allot you a establishment code and you can allot the account number from your office to all the members whose names are appeared on the pay roll. No need to wait any eligibility period. Earlier there was but now the employee is eligible to become a member from the date of joining to duty. Any doubt you feel free to ask in this thread.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

Yes It is mandatory.
Persons drawing below salary of Rs.6500/- will become PF members.
Persons drawing more than Rs.6500/- if they are already members of PF, you have to make them as members.
For other persons drawing above Rs.6500/- it is always better for the employer to extend the benefit subject the Ceiling Wage Rs.6500
because the PF is a welfare Legislation and the PF members will be getting benefits.

Apart from the above would like to know whether Peon is getting more than Rs. 6500/- as his/her basic, secondly what about an employee joining you who is already a member of PF and would like to transfer his/her account to the new one.

Hi....
Irrespective of any designation by virtue of his work, every employee is eligible to contribute the PF from Peon to General Manager subject to ceiling. Even some organizations are not following this ceiling and they are extedning the PF deduction both employees and employers @ 12 % on Basic and DA,
Any employee joins you, you can take Form No.11, and start the deduction towards PF and get his PF amount transfered in the existing PF account by applying in Form No.13. Now a days it is very easy as they have made online for easy access.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant