Applicability of EPF & MP Act to Non Government Organisation & Charitable Trust

The  Central  Government  in  exercise  of  its  power  under  section  to (2)  of Employees’ Provident  Funds  &  Miscellaneous  Provisions Act  1952  exempted from  the  operations  of  the  Act  to  certain  establishments  fulfilling  terms  and conditions  as  specified  in  Notification  No.S.O.1431 dated:14.05.2010 up  to 31.03.2015  subject to the following conditions.

1 a) Those being wholly financed by the grants in aid received from the Central Government, or any State Government or State Governments, or partly by the Central Government and partly by one or more State
Governments  subject  to  the  condition  that  grants-in-aid  does  not include  any  amount  for  the  purpose  of  meeting  the  liability  of  the employer towards the employer’s contribution to the provident fund.

Or

1 b) Those being run by public religious or charitable trusts or endowments  (including  matths,  temples,  gurudwaras,  wakfs,  Churches, synagogues, agiaries or other places of public religious workship) or societies  and  Trusts  for  religious  or  charitable  or  other  public purposes and notified as such by the Central Government under the Income Tax Act  1961  (43  of  1961)

c )    Provided that if such class of establishments run any university, any college, any school, any scientific institution, any institution in which research  education  imparting  knowledge  or  training  is  carried  on against  charges  or  fees  from  the  students,  or  run  any  hospital nursing home or clinic in which any medical treatment or procedure is carried on against charges or fees from the patients, such activity shall not be exempted from the operation of the Act.

The Central Government has decided not to extend the grant of exemption to  the  above  category  to  the establishment  and  consequently  all  such establishments shall come under the purview of the Act  w.e.f  1.4.2015.

All the above establishments are therefore advised that they should take immediate  steps  for  compliance  with  the  provisions  of  the  Act.   The Board  of  Trustees  and  other  functionaries  should  issue  proper instructions  to  the  officials  concerned  to  ensure  complete  compliance with the provisions of the Act. Any delay will result in demand for arrears of  contribution  levy  of  interest  and  damages  by  the  Provident  Fund  Department.