Employees’ Provident Funds and Miscellaneous

Provisions Act, 1952 (EPF&MP Act, 1952)

 Object
• The primary object is to provide social security
and to inculcate amongst the workers a spirit
of savings while they are gainfully employed
and to make provision for their benefit after
they retire from service and for their family
members after their death
 Applicability
• Every establishment which is factory engaged in any industry
specified in Schedule 1 and in which 20 or more persons are
employed.
• Any other establishment employing 20 or more persons which
Central Government may, by notification, specify in this
behalf.
• Any establishment employing even less than 20 persons can
be covered voluntarily u/s 1(4) of the Act.
Administration
• Central Board
• Executive Committee
• State Board
• Employees’ Provident Funds Scheme, 1952
• Employees’ Pension Scheme, 1995 (EPS) and
• Employees’ Deposit-Linked Insurance
Scheme, 1976 (EDLI)
 Employees’ Provident Funds Scheme, 1952

Contribution of Employee
• 12% of the Pay
• “Pay” includes basic wages# with dearness
allowance, retaining allowance** (if any), cash
value of food concession, and also on Leave
Encashment
Employer’s Contributions
• Equal to 12% of the Pay of employee

• Pension Fund (EPS) - 8.33% of Pensionable

Salary
Pensionable Salary: Pay or Rs. 15000/-
whichever is less
 Provident Fund - 3.67%
Employees’ Deposit Linked Insurance Scheme,
1976 (EDLI) - 0.50%
 Time and Mode of Deposit
• Within 15th of every month
• Submit to PF Commissioner through State
Bank of India
 Amount Payable to Regional Provident Fund
Commissioner’s office
• 12% of the Pay, Employees Provident Fund Contribution - A/c
No. – 1
• Voluntary Provident Fund Contribution – A/c No. – 1
• 3.67% of the Pay Employer Provident Fund, - A/c No. – 1
• 8.33% of the Pensionable Salary (EPS)-A/c No. – 10
• 1.10% of the Pay, PF Admn. Charges-Minimum Rs. 5/-pm, A/c
No. – 2
• 0.50% of Pensionable Salary for EDLI contribution-A/c No. – 21
• 0.01% of Pensionable Salary for EDLI administrative charges –
Minimum Rs. 2/-pm., A/c No.–22
 Withdrawal from the Fund
Member is entitled to withdraw full amount: -
• On retirement from service.
• On retirement on account of permanent and total incapacity
for work due to bodily or mental infirmity.
• Immediately before migration from India for permanent
settlement abroad or for taking employment abroad
• On termination of service in the case of mass or individual
retrenchment
• On termination of service under a voluntary scheme of
retirement
• After two months of resignation. In case of no employment
 Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI)

• The Employees’ Deposit Linked Insurance

Scheme, 1976 provides for payment of
assurance benefit, upon death of the member
while in service; linked to the average balance
in the provident fund account of the deceased
member. The assurance benefit shall be
payable to the person entitled to receive
provident fund accumulation of the deceased
member
• Membership - All members of Provident Fund
• Contribution
– Employees are not required to contribute
– Employer is required to contribute @ 0.50% of
Pensionable Salary
Benefits:
• On the death while in service of the member, the nominee of
the deceased shall in addition to PF/EPS accumulation, be
paid an amount equal to the average balance in the PF
accumulation of the deceased for the preceding twelve
months and if the average balance exceeds Rs. 35000/- then
the amount payable shall be Rs. 35000/- plus 25% in excess of
Rs. 35000/- subject to a maximum of Rs. 60,000/-
 Employees’ Pension Scheme, 1995(EPS)

Contribution:
• Employee is not required to contribute
separately under the Employees’ Pension
Scheme 1995.
• Employer share of Provident Fund
Contribution @ 8.33% is diverted to Pension
Fund
Service of Pension
A person is entitled for pension after completing
the age of 58 years, with a minimum service of
10 years
 Benefits Under Pension Fund Scheme,
1995
• Monthly Member’s Pension-
On attaining the age of 58 years
Pension: Pensionable Salary X(Pensionable service + 2)
70
• Monthly Reduced Pension
– Payable at the option of a member from a date after
50 years but earlier than 58 years
• Invalidity pension-
Permanent and total disablement during the course of
employment
• Widow pension-
Death of member whether in service or after exit from
employment or after retirement/ commencement of
monthly member pension
• Children pension
– Payable to two children of deceased member up to
the age of 25 years in addition to widow
– 25% of monthly widow pension
• Orphan pension
– Two orphan children up to the age of 25 years
– 75% of monthly widow pension
 Offences and Penalties
OFFENCE PENALTY
Making false statement or Imprisonment up to 1 year or Fine of Rs.
misrepresentation 5000 or both

Default of payment of administrative Imprisonment up to 3 years or Fine of Rs.

charges 5000 or both

Default in payment of employee's Imprisonment up to 3 years or Fine of Rs.

contribution 10000 or both

Contravention of or default in complying Imprisonment up to 3 years or Fine of Rs.

with, any of the provisions 4000 or both

Any subsequent offence committed after Imprisonment up to 5 years or Fine of Rs.

previous conviction 25000 or both