In a Press Release dated 31st December, 2019, the Ministry of Labour and Employment (“Ministry”) has clarified that there is no change of threshold with respect to the applicability of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (“Act”). The threshold for the Act remains “20 or more” employees.
The Ministry has issued the Press Release in the light of Media reports stating that from 1st January, 2020 the Act will apply to all establishments with 10 or more employees. Further, the Ministry has clarified that at present there is no proposal to change any such threshold.
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Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
1.(3) Subject to the provisions contained in section 16, it applies-
(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed, and
(b) to any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf:
Provided that the Central Government may, after giving not less than two months notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified in the notification.
Source: Ministry of Labour & Employment (Attached)
