THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

BY- MANOJ JAISWAL SADAB ALAM BHASKAR CHANDRA PAWAN KUMAR

The Employees Provident Fund Act 1952

The Employees Provident Funds Act 1952

The Employees Pension Scheme 1995

The Employees Deposit-Linked Insurance Scheme (EDLI) 1976

Introduction

Salary consists of two parts i.e. earnings & deductions Provident Fund is one of the statutory deduction done by the employer at the time of salary payment Provident Fund is governed by the Employees

Provident Fund Act 1952

The Employees Provident Fund Act 1952

OBJECTIVE
The

Employees provident Funds and Miscellaneous provisions Act, 1952 is enacted to provide a kind of social security to the industrial workers. The Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance. Act provides for payment of terminal benefits in various contingencies such as retrenchment, closure, retirement on reaching the age of superannuation, voluntary retirement and retirement due to incapacity to work.

The

APPLICABILITY OF THE ACT

To

every factory employing 20 or more persons. Any establishment to which the Act applies shall continue to be governed by the Act even if the number of persons employed therein at any time falls below.

The Employees Provident Funds Scheme, 1952

Applicability : Every employee employed

in or in connection with the work of a factory or other establishment covered by the schemes other than an excluded employee is entitled and required to become a member of the fund from the date of joining the factory or establishment.

Excluded Employee :

An employee who, having been a member of the fund, has withdrawn the full amount of his contribution in the fund (a) on retirement from service after attaining the age of 55 years or (b) before migration from India for permanent settlement abroad; or for taking employment abroad An employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds Rs. 6,500/- per month. A person who, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government.

Contribution under EPF Scheme,1952

1. Employees : 12% on Basic + DA 2. Employer : (a) 3.67% on Basic + DA (b) Administrative Charges : 1.10% on Basic +DA

9-Apr-13

The Employees Provident Fund Act 1952

Benefits

Employees can take advances / withdraw the PF in case of retirement, medical care, housing, family obligation, education of children & financing of life Insurance Polices Upto 90% of the PF amount can be withdrawn at the age of 54 years or before one year of actual retirement PF amount of the deceased member is payable to nominees / legal heirs Equal contribution by the employer PF A/c can be transferred if any member changes from one establishment to other where the PF Scheme is applicable

The Employees Provident Fund Act 1952

Interest Interest is credited to the members PF A/c on monthly running balance Interest rate is fixed by the Central Government in consultation with the Central Board of trustees of EEPF every year during March / April Nomination The member can nominate other person / persons to receive the Fund amount in the event of his death The nomination details provided by the members are maintained at the Regional Provident Fund Office for use in the event of death of the member
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The Employees Provident Fund Act 1952 Full Settlement PF A/c settled immediately under the circumstances; Retirement after 58 years Retirement on account of permanent incapacity Termination of service on retrenchment Voluntary Retirement Scheme (VRS) Permanent migration from India to settle abroad / taking employment For female members leaving service for getting married

PF A/c settled after two months under the circumstances; Resignation from the services

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The Employees Pension Scheme, 1995

Introduction To give long term protection / financial security to employee upon retirement and his family in case of his pre-mature death, family pension scheme has come into force by diverting 8.33% contribution made by employer towards PF scheme
Purpose: The

purpose of the scheme is to provide for (1) superannuation pension, retiring pension or permanent total disablement pension to employees covered by the Employees Provident Funds and Miscellaneous Provisions Act, and (2) widow or widowers pension, children pension or orphan pension payable to the beneficiaries of such employees.

The Employees Pension Scheme 1995

Application Scheme is compulsory for all the existing members who become members of the Employees Provident Fund Scheme Eligible Monthly pension to employees on retirement Widows on death of the member Children of the member below 25 years age Monthly pension to members upon permanent disablement during service

total

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Contribution
1. Employee: Not required 2. Employer : (a) 8.33% on Basic + DA
It is to be noted that where the pay of the member exceeds Rs. 6,500/- per month, the contribution payable by the employer will be limited to the amt. payable on his pay of Rs. 6,500/- only.

The Employees Deposit-Linked Insurance Scheme, 1976

Purpose

: To provide life insurance benefits to the employees of the establishments covered by the EPF & MP Act, 1952

Contribution under EDLI Scheme,1976

1. Employees : Not required 2. Employer : (a) 0.5% on Basic + DA (b) Administrative Charges : 0.01% on Basic +DA Where the monthly pay of an employee is more than Rs. 6,500 the contribution payable in respect of him by the employer is limited to the amts payable on a monthly pay of Rs. 6,500 only.

Benefits of EDLI scheme

The benefit provided under the scheme in the nature of life insurance as follows: 1. On the death of an employment while in service a lump sum insurance amount is payable to his nominee or family members. 2. The insurance amount is equal to the average balance in the account of the deceased employee in the Provident Fund during a period of 12 months immediately preceding his death. In case the average balance exceeds Rs.35,000/- the insurance amount payable is Rs. 35,000/- plus 25% of the amount in excess of Rs. 35,000/- subject to a ceiling of Rs. 60,000/-.

The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)

Application

EDLI scheme is compulsory for all the existing members who become members of the PF Scheme
Life insurance benefit (death coverage) of the employee is available under this scheme while in service
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The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)

Eligible Person who is eligible to receive PF dues of deceased member who died while in service is only eligible to receive EDLI fund

Exemption Employer can seek exemption from the Scheme if similar / better benefits are provided other than the Scheme with the consent of majority of employees

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Compliances under EPF & MP Act, 1952

Sr. No . Type of Compliance Form No. Compliance Date Remark / Submitted to

1.

Declaration Form from new Joinees

At the time of joining

RPFC office

2.

Monthly contribution of Employer & Employee in Challan for previous month

Challan

Before 15th of every month

In SBI

2. 3

Return of Employees Qualifying Return of Employees Leaving

5 10

Before 15th of every month Before 15th of every month

RPFC office RPFC office

Monthly Return

12A

Before 25th of every month

RPFC office

Compliances under EPF & MP Act, 1952

Sr. No. Type of Compliance Form No. Compliance Date Remark / Submitted to

5.

Annual return & reconciliation statement

3A & 6A

Before 30th of April

RPFC office

6.

Transfer of PF A/c

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When new Recruit

RPFC office

7.

Final settlement

19, 10C & 10D

At the time of Leaving the service

RPFC office

8.

Advances for various Purpose

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After 5 Years of membership

THANK YOU.