Professional Documents
Culture Documents
Basic Wages:
‘Basic wages’ means all earnings by employee, paid or payable to him in cash, while on
duty or paid leave.
Food Concession
Dearness Allowance
House-rent allowance
Bonus, commission or any other similar payment
Any presents made by the employer
An apprentice other than an apprentice engaged under Apprentices Act, 1961 shall be
treated as an employee.
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Non-applicability of the Act:
Any registered Co-operative society employing less than 50 persons and working
without the aid of power.
Any Govt establishment that have a separate contributory provident fund or old
age pension.
An undertaking constituted under a separate Act.
The CG may cancel the authorization, if employer has failed any conditions specified.
Before cancelling the application, employer shall be given opportunity of being
heard.
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Central Board of Trustees:
Composition of Board:
1 Chairman
1 Vice Chairman
1 Central PF commissioner
Maximum 5 officials representing CG.
Maximum 15 officials representing SG.
10 persons representing employers.
10 persons representing employees.
The Central Board shall administer the Provident Fund Scheme, Employees Pension
Scheme, Employees Deposit Linked Insurance Scheme.
Central Board shall take important policy decisions.
Maintaining proper accounts, as specified by CG.
Executive Committee:
Executive committee shall constitute 13 members. The members of Executive
Committee are selected from the members of Central Board.
The purpose of executive committee is to assist Central Board in its functions. The
Executive committee shall hold meetings to appoint any member to the Central Board.
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Order against Employer:
Where there is any dispute regarding applicability of the act to an establishment or any
other dispute, employer shall be ordered for a hearing. If employer fails to show at the
hearing, an ex parte order shall be passed.
Review of Order:
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Transfer of Accounts:
If the new establishment is not covered under PF Act: The employee who is a member
of PF obtains employment in an establishment that is not covered under PF Act, and the
new establishment has a Provident Fund of its own. In this case, at the request of the
employee, the amount standing to the credit will be transferred to his account in the
new establishment, within such time specified by the CG.
If the old establishment was not covered under PF Act: If an employee is employed in
an establishment to which the provisions of PF Act do not apply, because such
establishment has its own PF account, and obtains employment in an establishment to
which PF Act shall apply, then the amount standing to the credit will be transferred to
his account in the new establishment.
>The employee cannot claim any protection in respect of the amount withdrawn from
the PF account.
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Employees Provident Fund Scheme
Quantum of contribution:
Employee – 10% of pay (Basic + DA + Retaining allowance). Employer can make a
higher contribution)
Employer – 10% of pay
CG is empowered to increase the rate of contribution to 12%
Amounts standing to the credit shall be payable in a lump sum amount at the time of
termination of service.
In case of death of a member, legal heir will get the right.
Member can make partial withdrawals during his service.
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Employee Deposit Linked Insurance Scheme
Where the employer is a company: The amounts due from employer until the date of
liquidation order shall be included among the debts which u/s 530 of the Companies
Act, 1956, are to be paid in priority to all other debts, at the time distribution of the
property of the company.
In any other case: The amounts due from employer until the date of adjudication order
shall be included among the debts that are to be paid in priority to all other debts, at the
time distribution of the property of the insolvent.
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Whether the following nominations are valid?
Prakul don’t have a family and therefore nominated ‘Mohith’, who is his friend as
a nominee.
Answer: It is valid.
‘Krishna’ don’t have a family and therefore appointed his friend as nominee.
After a year, he gets married. Whether the nomination is still valid?
Answer: Nomination made in favour of a person who is not member of the family
becomes void immediately when the employee subsequently acquires a family.
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