Employees Provident Fund

Dear Sir/Madam,

We are a registered Society. We have a high school with about 40 workers and are paying their due including the EPF, etc. However there are other employees such as driver, watchman, extra clerical staff, domestic help who look after the children etc. How do we pay these employees? will they have to be included in the Employees Provident Fund and added along with the staff of the school – even when they are not really staff directly of the school but of other works relating to the Society. We have a service benefit fund and the amount and the amount is deposited in a separate bank account month after month. Are we right in doing it or the 20 employees/10 employees rule apply also to us.

As a registered body do we have to pay according to the minimum wage act. Where could I get the details for the 4 states of Goa, Gujarat, Maharashtra and Karnataka specially for the class of driver, domestic help, helper etc. thanking you in anticipation My email id is meena.fma@gmail.com

Meena D’Silva

Sr. Meena D’Silva FMA
Auxilium Centre
Plot No. 84, St.Andrew’s Road
PH:(022) 26559605

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4 Responses to Employees Provident Fund

  1. Ma Basa says:

    As a Newbie, I am permanently exploring online for articles that can be of assistance to me. Thank you

  2. Subhash Mittal says:

    Dear Mr Balappan,

    Thank you for your kind words.

    What I understand of Banglore Water Supply decision (1978) is that it conferred that statutory bodies providing utilities services also fall within the ambit of Industrial Dispute Act’. I believe the following decision is not only more recent and is directly applicable in case of NGOs.

    Here I refer to a more recent case. This basically involved Madurai Children’s Aid Society (NGO) and an employee. You may refer to the case through the link provided in the earlier post.

    I still think the person undertaking supervisory or clerical work is considered as workman under Industrial Dispute Act. Pl refer to the following definition that I is given under the Industrial Dispute Act.

    [(s) “Workman” means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward,…….

    warm rgds

    subhash mittal

  3. T.K. Balappan says:


    Excellent reply. Yes in the (in)famous Bangalore Water Supply case has made the life of NGO management miserable.

    Sir kindly check : In the second para, I think the word “not” is missing. To me, a person who is not performing “supervisory” duties has been termed as a “Workman” under the ID Act.

    T.K. Balappan

  4. Subhash Mittal says:

    Dear Sr. Meena,

    There is certain amount of confusion in this regard, although the minimum Wages Act 1948 does not per se specify NGOs to be covered in the scheduled employment (basis for falling under this Act), while some of the State Acts talk of employment under Shop & Establishments being covered under Scheduled employment (example Bihar). Hence if an NGO in a particular state where scheduled employment list includes employment with Shop & Establishments then NGO would be certainly considered.

    However it may be worth noting that the Madras High Court has broadened the definition of an employee working in an NGO to be covered by the Industrial Dispute Act and hence by default it would also get covered under the Minimum Wages Act. HC has taken a position that NGOs are falling within the definition of Industrial Dispute Act and a person working in such an organisation, having supervisory duties would be treated as ‘workman’ under the Industrial Dispute Act and therefore would be entitled to all benefits as applicable under the Act. Refer link below for further detail of the case.


    Hope it may be useful.

    I also provide link below where you could find Minimum Wages legislation relating to different states.



    subhash mittal

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