Section 17 of EPFMA : Section 17: Power To Exempt

Explanation using Example

Imagine a software development company, XYZ Tech, which has a well-established provident fund for its employees. The company's provident fund scheme offers similar or better rates of contribution and benefits compared to what is mandated by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Considering the superior benefits, XYZ Tech applies to the appropriate government for an exemption from the statutory provident fund scheme under Section 17 of the Act.

The government reviews the application and, after consulting with the Central Board, decides that XYZ Tech's provident fund rules are indeed not less favorable than those specified under the Act. Consequently, the government issues a notification in the Official Gazette, exempting XYZ Tech from the operation of the provisions of the statutory scheme, subject to certain conditions.

As part of the conditions, XYZ Tech is required to establish a Board of Trustees to manage its provident fund and ensure compliance with investment directions and other provisions as specified by the government. The exemption allows XYZ Tech to continue providing its employees with a beneficial provident fund scheme while ensuring that the employees' interests are protected and the employer is held accountable for the management of the fund.