Under Chapter III of the Code on Social Security, 2020, the Employees' Provident Fund (EP

Solution

Chapter III of the Code on Social Security, 2020 retains the threshold of 20 or more persons for applicability of EPF provisions consistent with the earlier Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Both the employer and the employee contribute at the rate of 12% of wages each to the provident fund. However, of the employer's 12%, a portion goes towards the Employees' Pension Scheme (EPS) presently 8.33% and the rest goes to the EPF account. Establishments employing fewer than 20 persons may voluntarily opt into the scheme. The Code also retains the Central Government's power under Section 144 to defer or reduce EPF contributions for up to 3 months at a time in the event of a pandemic, epidemic, or national disaster a provision that was operationally used during COVID-19. The Central Board of Trustees continues to administer the EPF, EPS, and EDLI (Employees' Deposit-Linked Insurance) schemes under the Code.