Reduced threshold of 10 Employees for PF Coverage (against existing 20)

As per News Reports, the Central Board of Trustees (CBT) of EPFO has recommended in its meeting dt. 21 Feb. 2018 to reduce Administrative Charges from 0.65% to 0.50% of wages and to reduce the threshold limit of minimum number of workers from 20 to 10 for coverage under the EPF Scheme.

As per existing EPF Scheme, the units employing 20 or more workers/ employees are mandatorily required to be covered. Also, requisite amendments in the law relating to the Proposed Scheme are required to be made to implement the recommendation of the CBT of EPFO.

As per subsequent developments, it may be observed that the proposal to reduce the PF Admin Charges has been implemented w.e.f. 1 June 2018, however the proposal to reduce the threshold from 20 workers to 10 workers continues to be just a proposal.

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One Response

  1. Ajesh Chauhan

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