This Amendment In EPFO is set to benefit additional 50 lakh employees as the new changed set of regulations come into effect from January 1, 2020. In respect of the same, ministry of labour under the Central government has issued a notification.
For the social security scheme, the organization has decided to extend benefit to employees whose PF has still not been deducted.
Herein, the point to be noted is that the change in labour laws do not need any statutory approval from the Parliament. The same change however was approved by the EPFO CBT's in July of 2008. But as the said change has been approved, it will also be made applicable in the newly formed Union Territory of Jammu and Kashmir and Ladakh.
As per the EPF rules, PF becomes applicable where any firm, office or institute has 20 or more workforce but now on the deduction towards PF shall also be in offices where only 10 people are employed. So, to come within the ambit of PF, employers with 10 or more employees should register themselves under the Employees' Provident Fund and Miscellaneous Provisions Act.