The Employee's Profident Fund Act, 1952

Presented by: Hari Govind A. 3rd semester Holy Grace Academy of Management Studies,Mala

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The Employees Provident Fund Act 1952

The Employees Provident Funds Act 1952 Employer role & responsibility Employee role & responsibility The Employees Pension Scheme 1995 The Employees Deposit-Linked Insurance Scheme (EDLI)
1976

List of Forms
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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

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The Employees Provident Fund Act 1952

Introduction
Provident Fund has come into force to give better future to
employees on their retirement & his dependants in case of his death during employment The Employees Provident Funds Act 1952 is compulsory contributory fund for the future of an employee after retirement or for his dependents in case of his early death Act is applicable to all states of India except Jammu and Kashmir

Eligibility Every industry employing 10 or more persons (180 industries are specified in Schedule 1 of the Act) Every industry employing 10 or more persons which the Central Govt. may notify Any other establishment notified by the Central Government even if employing less than 10 persons
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The Employees Provident Fund Act 1952

Eligibility & Entitlement

Every employee employed directly / through a contractor who is in receipt of
wages are eligible to become a member of the fund (exception - Apprentice under the Apprentices Act and casual laborers)

Irrespective of permanent / probationary employees, all employees are

eligible for joining the PF scheme from the date of joining the service

Minimum 10% of the basic pay for establishments employed less than 10
persons; sick industries declared by necessary authority; Jute, Beedi , Brick, Coir & Guar Gum Industries / Factories

Other industries maximum 12% of the basic pay A member can contribute voluntarily more than statutorily prescribed rate
(upto 100% of basic salary) which will be transferred to his PF A/c

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The Employees Provident Fund Act 1952

Calculation
12% contribution by the employee is directly transferred to his Provident
Fund A/c

12% is contributed by the employer out of which 8.33% is credited to

Employee Pension Fund and the balance 3.67% is transferred to PF A/c of the employee

1.10% Administration charges on total wages are payable by the employer 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and payable by
the employer towards EDLI fund

0.01% EDLI Administration charges calculated on total EDLI slab wages are
payable by the employer

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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 present interest rate @ 8.5% PF A/c can be transferred if any member changes from one
establishment to other where the PF Scheme is applicable

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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 The present rate of interest is 8.5%

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

Annual Statement of Account

After the close of each year of contribution, annual statement of account
will be sent to each member through establishment where the member was last employed through form 23.

Form 23 will show the opening balance at the beginning of the year,
contributions during the year, the amount of interest credited at the end of the period and the closing balance at the end of the year

If any error is noticed in Form 23, the member shall bring the same to the
notice of the PF Office through employer within 6 months from the date of receipt of the statement 5/5/12
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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 Provident Fund Act 1952

Advances / Withdrawals Purchase of site for construction of House / purchase of flat Additions / alterations / improvements to the house Repayment of loan Hospitalization for more than a month / major surgical operation /
suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc

Marriage of self / son / daughter / sister / brother Education of son / daughter Physically handicapped member for purchasing an equipment to
minimize the hardship due to handicap

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The Employees Provident Fund Act 1952

Employer Role & Responsibility

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The Employees Provident Fund Act 1952

Monthly Returns
Filing monthly PF returns with the EPFO within 15 days of the close of
each month

Provide list of new employees joined in the establishment during the

preceding month & are qualified to become member in fund (Form-5)

Provide list of employees leaving service during the preceding month

(Form-10)

Employer should file 'Nil' returns if there is no new employee or no

employee leaving the service during the preceding month

Provide the total no. of members last month, new members joined and
existing members resigned in the preceding month & total no. of present subscribers to be fund 5/5/12 (Form-12A)

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The Employees Provident Fund Act 1952 Annual Returns

Employer shall send to the Commissioner within one month of the close of the year, a
consolidated Annual Contribution Statement (Form-6A) and individual employee sheet (Form-3A) showing the contributions made by the employees and employer during the year

Penalty
1237% interest is payable for the delayed period in remitting contributions/
administrative charges depending upon the delayed period

Exemption
Employer can seek exemption from the Scheme if similar / better benefits are
provided other than the Scheme by forming a Voluntary PF Trust which will work under the rules & regulations of EPFO 5/5/12
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The Employees Provident Fund Act 1952

Employee Role & Responsibility

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The Employees Provident Fund Act 1952

Provide details of self & nominees (Form-2) for PF & Pension Scheme
at the time of joining the establishment

In case of already having PF A/c, apply for transfer of previous A/c to

the present A/c

If willing to increase contribution, inform the same to the employer to

deduct the amount from the salary (Voluntary Provident Fund).

Voluntary PF can be upto 100% of wages Understand that the employer is not liable to pay any contribution on
voluntary PF

Understand that Employees' Provident Fund Organization does not

have any agent / middlemen

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List of Forms

Forms For Claiming Benefits Under PF Scheme

Form Purpose

For transferring the PF A/c of a member from one 13 establishment to another establishment covered (revised) under the Act / Scheme Application for financing a life insurance policy out of 14 PF A/c To be submitted by a member to withdraw his PF 19 dues on leaving service / retirement / termination In the event of death of member, this form is to be 20 used by a nominee / family member to claim the member's PF accumulation For the use of PF members to avail advances / 5/5/12 31 17 17 withdrawals as provided in the scheme

Thank You

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