Background
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 was introduced to ensure financial security and social welfare for employees after retirement or in contingencies such as disability, death, or illness. The Act establishes a contributory provident fund, pension scheme, and deposit-linked insurance scheme for workers in establishments covered under the Act. Administered by the Employees’ Provident Fund Organisation (EPFO), it is one of the most significant social security legislations in India, aimed at promoting savings among employees and protecting them from future uncertainties.
Applicability
The Act applies to factories and establishments engaged in industries notified by the Government of India, employing 20 or more persons.
Compliance under the Act
An industry or establishment having 20 or more employees is required to register under EPFO, if any of the employee is drawing wages or salary more than the prescribed limit under the law.
EPFO Registration is mandatory for employers meeting the threshold, and they must ensure timely registration of their establishment.
Every employer shall furnish to the Regional Commissioner in Form No. 5A the particulars of all the branches and departments, owners, occupiers, directors, partners, manager or any other person or persons who have the ultimate control over the affairs of such factory or establishment. Any change in such particulars must also be intimated within fifteen days of such change to the Regional Commissioner.
Changes in particulars of owners, branches and departments shall be furnished to the Regional Commissioner in Form No. 5A, within 15 days of such change.
Every employer who employs 20 or more employees in the organization is under an obligation to register under the PF Act, 1952 and start a provident fund scheme for the employees.
Remittance of monthly PF contribution along with ECR filing is mandatory in accordance with the Act.
Penalties & Punishment
Conclusion
The EPF Act, 1952 ensures long-term financial protection and promotes a culture of savings for employees in organized sectors. By making contributions compulsory for employers and employees, it provides a safety net during retirement and unforeseen events. Its implementation across establishments in India strengthens the social security framework and contributes to employees’ financial well-being.
Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article.