Which of the following statements is/are correct ? The Employees' Prov

Which of the following statements is/are correct ? The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is generally applicable to every establishment :

1. which deposits GST of more than ₹ 50,000 per year.
2. employing twenty or more persons.

Select the correct answer using the code given below :

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1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CISF-AC-EXE – 2022

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The correct answer is (B) 2 only.

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is generally applicable to any establishment employing twenty or more persons. This is the primary threshold for coverage under the Act, as specified in Section 1(3). The applicability is based on the number of employees, not on tax parameters like GST deposits.

While the Act initially applied mainly to factories and specific scheduled industries, its coverage has been extended over time to various other establishments employing the minimum number of persons. GST deposition is a tax compliance requirement and is not a criterion for the applicability of the EPF Act.

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