Is the Provident Funds Act applicable to Charitable Institutions?

[disha halani]

Dear Friends,

 

One query which may sound weired. But I need clarifications.

 

Is Provident Funds Act and Gratuity Act applicable to Public Charitable Trusts??

 

All views are welcome.

 

Thanks & Regards,

Disha

[csarengarajan]

Dear Member

 

By going this defintion, PF will not be applicable to public provident charitable trusts

Applicability:
The Employees' Provident Funds and Miscellaneous Provisions Act extends to whole of India except State of Jammu and Kashmir.
The Act Applies to industries specified in Schedule I employing 20 or more persons and any other class of establishments employing 20 or more persons notified by the Government.
The Government may apply the Act to establishments employing less than 20 people.
Employees covered under the act include contract labour but exclude apprentices, trainees, directors, working partners, domestic servants and contractors.
Establishments can seek exemption from any or all the provisions of the act.

 

Objectives:
The Payment of Gratuity Act provides for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.
The Act enforces the payment of 'gratuity', a reward for long service, as a statutory retiral benefit.

Here also Gratuity will not be applicable to Public Charitable trusts.

 

Applicability:
The Payment of Gratuity Act extends to the whole of India and is applicable to all factories, mines, oilfields, plantations, ports, railway companies and any establishments where 10 or more persons were employed on any day of the preceding 12 months and every Shop and Establishment of that State, in which 10 or more persons are employed, or were employed on any day in the preceding 12 months.
Every employee irrespective of his wages is entitled to receive gratuity if he has rendered continuous service of 5 years or more than 5 years.

The Act is not applicable to apprentices and persons holding a post under the Central or State government who are governed by any other rule providing for payment of gratuity.

The Act covers all employees who draw upto Rs. 3500 per month as wages. The maximum gratuity payable is Rs 3,50,000.

You may also visit epfindia.nic.in where elaborately mentioned about Schedule I Industries.

 

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