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epf new rules

EPF new Rules – Coverage threshold limit is 10 employees

February 5, 2016

The EPFO has decided  to provide social security to an additional 50 lakh workers other than the already existing 5 crore members. This came in accordance with the EPF new rules which state that the threshold for any firm to be subscribed under the EPF act is to have 20 employees.

According to the EPF new rules, this limit is now going to be halved. This means that any Firm which has a minimum of 10 employees has to be registered with the Employees’ Provident Fund and Miscellaneous Provisions Act.

Currently, the firms that come under the Act are those which has 20 or more employees.

This proposal to reduce the coverage threshold was approved by the central board of trustees at the 183rd CBT meeting, which was held in July of 2008. But so far it has not been implemented. The labour ministry is now looking into the approval of this proposal. 

Explaining further, an official has stated that the labour ministry has decided to go for it since the amendment of labour laws do not need approval from the Parliament. This amendment could be brought into effect from April or May. 

Since the Employee State Insurance Corporation (ESIC) is already applicable to establishments which have 10 or more employees, the EPF new rules will help in unifying the social security efforts by the Government.

Read more about the PF Act OR ESIC Act.

Disclaimer: This blog is just for informational purpose only. We (Relyon Softech Ltd) are not associated with the EPFO or PF department.

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48 Responses to “EPF new Rules – Coverage threshold limit is 10 employees”

  1. HARISH C R

    Sir:
    Thank you for the update on ESI and PF.

    Could you please indicate any changes in the contribution of EPF ceiling for the year 2016-17?

    Regards
    Harish Rao

  2. shruti balan

    kindly tell us from when the new EPFO rule is applicable i.e no of employees to 10

  3. neelakandan

    Dear sir
    We are working 10 employees in our company. But here doesn’t give esi pf national holidays and permanent also. What we will do say some suggestions sir

  4. RAMAN JHA

    No of employee required for ESIS and EPF registarion of an entity

  5. M K GAUR

    Pl. confirm for company working in Delhi
    1) ESIC is applicable for above 10 employees?
    2) PF is applicable for more than 20 employees?
    3) Employee covered under ESI under basic salary of Rs.15000/- will also be under PF?

    • CA Ritu Raj

      1) Right
      2) Right
      3) Partially Right, As, Threshold limit for ESIC has been increased to Rs.21,000 from 01.01.2017.

      • Ashish Goel

        This is incorrect info. ESI is not applicable on all types of companies. It only applies to specific establishments.
        Source: http://esic.nic.in/coverage.php
        ———————————————————————————-
        APPLICABILITY

        Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

        Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

        Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

        • relyonadmin

          Dear Sir, this post is regarding EPF. Also, this is not yet confirmed by the department.

  6. Pramod Kumar Agrawal

    Sir,
    If I have 12 employees, and three of them are getting salary more than 21000.00. If the ESI act will be applicable to us or not.
    Regards
    Pramod Kumar

    • relyonadmin

      Sir,
      It in your case, it will be applicable.
      Any company having more than 10 employees will be applicable under the ESI act.
      Act applicability not based on number of employees in the said salary range but on the number of employees in the organization.

  7. PANNA DEB

    If I have 11 employees in my establishment then is it mandatory to registered under EPFO? pls suggest at ealiest.

    • arun kumar sinha

      i have no employee on regular basis ,taking vehicle on lease …

  8. Adnan ahmed P

    Dear sir ,

    in our company has only 6 employees , can be possible for PF eligibility

  9. arun kumar sinha

    i am operator of light vehicle 4 wheeler on hire basis…i take vehicle on lease by other owner..would i applicable for epf n esi….? thanks

  10. Anup Deb

    I registered a new private ltd company with 6 employees, 2 Director and 1 Manager total – 9. Can I open EPF & ESIC account?

  11. Kaushik

    As the contractor providing daily wage labour has less than 10 people he is unwilling to open both PF as well as ESI. Is there any provision for opening PF account for these labours? What is the role of a principal employer in this regard? Can he terminate the contract?

  12. Siddharth gupta

    Actually I am a civil contractor at very low scale i dont have any employee permanent and when I need then I’ll call them, in my work I have unskilled labour, some do 1 day or 2 day and some till a week, and I pay the labour. so my question is that if I dont have permanent employee so what should I do? do register with epf or not?

  13. Brajendra kumar shukla

    Please mail us the certified copy of 10 person to be registered in EPF

  14. K C Baral

    1. Whether a consultant is eligible for EPF?
    2. Whether a Temporary Employee is eligible for EPF?
    3. If I have 19 employee is it mandatory for EPF registration?
    4. If I have 18 employees and 2 consultant is it coming under EPF?
    5. Is it required for a consultant to have a GSTN?

  15. ramashankar

    dear sir, kindly request to you please guidance to 4 persons epf submission and registration

  16. Sumeet sehgal

    kindly tell us from when the new EPFO rule is applicable i.e no of employees to 10

  17. Manish Kothari

    Dear Sir

    What if employees number is less than 10 but employer is willing to avail PF for his entire team? Please advise

  18. parvinder Singh

    please tell me what is DOCUMENT REQUIRE FOR ESI, EPF IN STARTUP NEW BUSINESS.

    • relyonsoft

      Sir, visit the respective websites for information.
      Business Number Allotment Form (may be obtained from Pf Office)
      List of minimum 20 Employees with their DOJ and Rate of Salary
      Memorandum & Articles of Association with Certificate of Incorporation/Partnership Deed as applicable.
      Copy of PAN
      Bank a/c existing Certificate
      Copy of Vat Registration
      Copy of Factory/Shop & Comm. Est Registration
      DD/Cheque for One-month advance contribution (Optional)
      Copy of any other Registration as may be.

      For ESI

      Form 01 Employer’s Registration (may be obtained from ESI Office)
      List of minimum 10/20 Employees with their DOJ and Rate of Salary
      Memorandum & Articles of Association with Certificate of Incorporation/Partnership Deed as applicable.
      Copy of PAN
      Bank a/c existing Certificate
      Copy of Vat Registration
      Copy of Factory/Shop & Comm. Est Registration
      DD/Cheque for Six-month advance contribution (Optional)
      Copy of any other Registration as may be.
      Declaration Form of each employee along with their 2 Postcard size photographs (Optional)

  19. Prince jain

    How can i register a firm which only have 6 employees and new norms says it is compulsory for all retail petrol pumps to get register in epfo and esic.

    Please help me in that

    • relyonsoft

      Sir, please contact the nearest PF office located to your office

  20. Dileep Kumar Kaja

    Dear Sir, We have company with a staff of 12 members under the company pay roll and another 15 members are outsourced and the staffing agent is providing PF for his 15 members, Now my question is are we need to register for PF or not? can you please share me the relevant provisions please

    • relyonsoft

      Dear Sir,
      As the staff agent is already providing PF for outsourced staff, your coverage shall be only for the employees coming under your payroll i.e. 12 members. As there is possibility of your employees being increased, you can opt for voluntary PF registration. PF registration is mandatory once the members in payroll cross 20 Nos.

  21. Anil Singh Negi

    Please Send me any ESIC & EPF changes so please confirm me.

    Not my URL no.

  22. Hills

    Ex EPF Registerd but there is no employees what to do and any other penalty

    • relyonsoft

      Dear Sir, If the Establishment is registered but no employees for contribution, then there will be no penalty.

  23. Sangram mahapatra

    Dear Sir,
    We are working 23 employee in our company named Narula Cloth House, market Building,Bbsr,it’s a shopping Mall,But our owner doesn’t give ESI and EPF , so what we will do say something Sir.

    • relyonsoft

      Dear Sir,
      Please speak to your employer for providing the facility. If they still do not provide, raise your concern to labour & PF department

  24. Himani Patel

    Which documents required for registration of employees in of & esic

    • relyonsoft

      Dear Sir,
      The employees will be registered through the employer online portal login for both PF & ESI

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