Social Security - The Net Widens

The much anticipated move by the Government of lowering the threshold for the applicability of the provident fund regulations has finally been given effect. The Government recently notified the amendment to the Employees Provident Fund and Miscellaneous Provisions Act, (EPF) 1952 by making it applicable to all establishments having at least 10 employees. Earlier, the EPF Act was applicable to only those establishments which had 20 or more employees. Thus many companies were able to exclude themselves from the reach of this beneficial legislation. Establishments with 10 or more employees will now be under an obligation to ensure registration, make statutory deductions, contributions and ensure other related compliances as stipulated under the EPF Act. The social security benefits provided under the Employees State Insurance Corporation (ESIC) Act are already applicable to establishments with 10 or more employees. Therefore this action brings parity with the ESIC Act with