The Act initially applied to factories/establishments falling within six specified industries which had completed three years of existence and employed 50 or more persons. With effect from 31-12-1960, the establishments employing 20 or more persons were also brought under the purview of the Act.
The Central Government has residual powers to apply this act to any establishment employing less than twenty employees. By virtue of these provisions, the Employees’ Provident Fund Scheme has been extended to Cinema theaters employing five or more persons, w.e.f. 1-10-1984. Also there is a provision for voluntary application of the Act to any establishment upon joint request from the employer and majority of its employees, to whom it does not apply otherwise.
An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty. Presently an employee at the time of joining the employment and getting wages up to Rs.6500/- is required to become a member. Now an employee is eligible for membership of fund from the very first date of joining a covered establishment.