When is EPF Registration mandatory?
A. EPF Registration is compulsory for:
- Factories engaged in industry as mentioned under Schedule I of the Act and employs 20 or more employees on any single day
- Establishments or Class of Establishments notified by the Central Government and employing 20 or more persons on any single day
B. Important points:
- The Employer needs to get registration within 30 days of attaining the strength of 20 or more employees
- The Employees for the purpose of this act includes part -time employees, contract employees, apprentice other than those engaged under the apprentice act.
- While calculating the limit of 20 employees, even employees drawing salary more than 15000 will be included.
- For the purpose of calculating the limit of 20 employees, the establishment shall include all other departments and branches and the total of employees of all such branches and departments should be included.
C. Voluntary Registration:
Any establishment can voluntarily register for PF Number and contribute even if the number of employees is less than 20. However, a consent letter from majority of employees and Voluntary coverage agreement details should be given for such registration in addition to other details and documents.
NOTE: Since Feb 2020, EPF and ESI registrations are automatically and compulsorily given with the Incorporation of New company or LLP in submission of Spice + and Agile+ forms with MCA. While the registrations are compulsory, the return filing becomes compulsory only on meeting the legal requirements under the act