The EPF coverage rules have been changed to include those establishments which have more than 10 employees. This move will benefit over 50 Lakh workers who are not applicable under the old EPF coverage rules.
According to the old EPF coverage rules, any establishments which have 20 or more employees come under the coverage of the Employees’ Provident Funds Act. This amendment will bring more employees under the social security net.
The labour ministry has submitted the proposal after it was accepted by the EPFO’s decision-making body, the central board of trustees and it has been taken into consideration by the government. The labour ministry has provided an executive order.
A senior official has said that there is a provision in the EPF act which authorizes the government to make changes in the threshold limit by providing an executive order.
Resting the rumors, he also said that there is no immediate plan to bring unorganized workers under the PF scheme.
Currently, the EPFO runs three social security schemes for workers in the organised sectors:
- Employees’ Provident Fund Scheme 1952.
- Employees’ Pension Scheme 1995.
- Employees Deposit Linked Insurance Scheme 1976.
The EPFO has approximately 5 crore workers as its subscribers and receives around 1 lakh crore as incremental deposits every year. If the policy is implemented, the addition of new subscribers and its enforcement will further increase the corpus in the EPFO.
Al read: File EPF and ESI together
10 employees for coverage is confirm or issue till pending please explain
it is still pending sir..
Thank you sir, sharing valuable information.
I love this rule.
this rule apply on private sector company?