PF Coverage for NGOs

Dear dialogue members,

It is reported that all Religious and Charitable Institutions which are hitherto exempted from coverage of EPF are now covered under EPF provisions w.e.f. 01.04.2015. Can anybody through light on this please.

Regards,

Sridharha

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10 Responses to PF Coverage for NGOs

  1. Kumar says:

    Hi

    All is there any document or PPT which can be shared with other organization which has compliance and guidelines on PF it can be helpful for NGO who are new to PF

    Regards

  2. Asif Zaidi says:

    Dear all

    we are a small Charitable trust registered at Jaipur in Rajasthan and having employees ranging between 18-25 depending upon the projects and availability of funds. We had PF and we were regularly complying all PF norms. Two years back we introduced our personal systems including a salary structure and also introduced gratuity. All of us know that in last year we years funding scenario has changed a lot and in this financial year 2015-16 our main funding from CSR has also shrunk significantly. Therefore the DST cost (Development Support Team cost) and OH costs also impacted as it was directly linked in percentage of programme funds. Now we discussed this issue with our staff and after discussion we arrived at consensus to maintain basic and pay only the take home as salary and stop PF deduction and submission of organisational contribution also.

    All employees voluntarily gave their agreement to this decision in writing. Now we are wondering is it correct? what are the implications of it. Kindly give suggestions and advise pl.

    Looking forward for your guidance
    warm regards

    Asif

  3. A.C.Sridharha says:

    Many Thanks Ramanuj Maurya for giving the information.

    Regards,

    A.C.Sridharha

  4. Shekar says:

    As per the notification dated September 7, 2015 exemption has been withdrawn. I want to know whether PF is applicable to all registerd NGO’s or only to those NGO’s who have employed 20 or more staff?

    • Subhash Mittal says:

      Of course, Sheker, normal PF provisions would be applicable, when considering applicability of PF on any entity including NGOs. However main consideration is that now NGO sector does not have the protection of the said circular.

  5. Ganesh Krishnan says:

    You this means even NGOs that function ONLY ON FCRA funds are required to have EPF for the employees??

  6. Subhash Mittal says:

    Thank you Bharat for sharing the PF notification, which makes it abundantly clear that PF is now applicable on all charitable institutions.

  7. Bharat Gupta says:

    Dear Members,

    Pls. also see the following link in this regard.

    http://www.srr-foundation.org/circulars/Applicability_EPFAct_24366.pdf

    Bharat Gupta

  8. Subhash Mittal says:

    PF Act never exempted charitable organisations from PF obligations. However due to several representations by the NGO community, the Dept had come out with a notification exempting NGOs with certain restrictions (see the same on link below). This exemption was upto 31st March 2015. The Dept has not further renewed the exemption so far. Thus at present NGOs would also need to cover their employees by PF regulations.
    http://www.srr-foundation.org/circulars/NGOs_exempted_from_PF.pdf

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