Please tell me whether the "establishments employing 20 or more persons" mentioned in the PF Act denotes 20 persons above the ceiling limit of Rs.6500/- or the total number of employees in the establishment ? pls also give me case law references in this regard.
08 May 2010
The Employees’ Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory fund for the future of an employee after his/her retirement or for his/her dependents in case of his/her early death. Its applicability: It extends to the whole of India except the State of Jammu and Kashmir and is applicable to:
a) every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed;
b) every other establishment employing 20 or more persons or class of such establishments which the Central Govt. may notify;
c) any other establishment so notified by the Central Government even if employing less than 20 persons.
Every employee, including the one employed through a contractor (but excluding an apprentice engaged under the Apprentices Act or under the standing orders of the establishment and casual laborers), who is in receipt of wages up to Rs.6,500 p.m., shall be eligible for becoming a member of the funds. The condition of three months’ continuous service or 60 days of actual work, for membership of the scheme, has been done away.
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