Presented By, Saista Nasir

The Employees Provident Fund was instituted by an

Act of Parliament in November 1952 for providing the social security benefits to the work force engaged in non-government sector. It provide old-age and post service financial support to the workers in general employed in Industrial & Commercial Sector establishments. The scheme provided for provident fund system on contributory basis by the Employers and the Employees at equal rate. It made available to the employee concerned the accretions in the Provident Fund a/c with interest in lump sum on retirement or leaving the job.

 It is a mandatory, tax-qualified, defined, contribution

retrial benefit plan wherein equal contribution at the specified rate is made by the employer and the employee and the same is payable in lump sum on retirement.

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 Funds Act, 1952 is enacted

to provide a kind of social security to the industrial workers. The Act mainly provides retirement or old age benefits, to the employee. The 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 act extends to the whole of India [sec .1(2)] To every establishment which is a factory engaged in any industry specified in schedule I and in which 20 or more persons are employed [sec. 1(3) (a)], and As per Para 26(2) of the Employees Provident Fund Scheme, 1952, every employee employed in or in connection with the work of a factory or establishment other than an excluded employee shall entitled and

required to become a member of the Fund from the date of joining the factory or establishment. Employee includes following persons also: (1) Employed by or through the contractor in or in connection with the work of the establishment (2) Engaged as an apprentice, not being an apprentice under the Apprentices Act, 1961

 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has withdrawn the full amount of his contribution in the fund (a) on retirement from service after attaining the age of 55 years or (b) before migration from India for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.

 Employees can take advances / withdraw the PF in case of

retirement, medical care, housing, family obligation, education of children & financing of life Insurance Polices Up to 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

 Employees : 12% on Basic + DA

Employer :

(a) 3.67% on Basic + DA (b) Administrative Charges : 1.10% on Basic +DA

Apart from the financial benefits, some very important

benefits become available to employees who are members of

voluntary PF Trusts in comparison to the unexempted establishments :

Easy Availability of advances

No hassles of Dealing with Public Departments Availability of Refundable advances Faster transfer of accumulations for outgoing members Faster settlement of final dues

 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%

 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

THANK YOU