EPF to NGO & Charitable Trust

NGO & Charitable Trust

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.

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

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.