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Volume - 25
September 2021

Organization need to follow Employee Provident fund provisions in certain cases

Any organization which employs 20 or more employees during the previous year, is under an obligation to register himself under the PF Act, 1952 and start a provident fund scheme for the employees in his organization. However, there is no restriction if the employer and the employees of such establishments wish to start a scheme even if the number of employees is less than 20.

The establishment has a choice between the following two alternatives:
-  They may join the government scheme.
- They may start a PF scheme after the approval of the Provident Fund   Commissioner

Note: Once registered, the organization shall continue to be governed by the Act notwithstanding that the number of persons employed therein at any time falls below 20 in any year.

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