HUMAN RESOURCE MANAGEMENT

SUBJECT CODE : 4529204

MBA SEMESTER : 2
MODULE : V
FACULTY :DR. RANJITA BANERJEE
 BY:-
SNEHA PARIKH - 207050592023

MEHAL PARMAR - 207050592060

SAGAR KURSEJA - 207050592064

YASH PAREKH - 207050592072

ROHAN RAMI - 207050592078

THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT,
1952

It is a scheme managed under the Employees' Provident Funds and

Miscellaneous Provisions Act, 1952, by the Employees' Provident Fund
Organisation (EPFO).

Employee Provident Fund is the fund the purpose of which is to provide

employees with the lump sum payments at the time of exit from their place of
employment. This is different from pension fund, which have elements of both
lump sum as well as monthly pension payments. Employees save fraction of
their salary every month under EPF scheme.
EPF Contribution Percentage:-

The employer contribution is calculated as 12% of total of the following

components (basic wages dearness allowance + retaining allowance). An equal
contribution is paid by the employee also if an organisation employs more than
20 employees.

Out of employers contribution of 12% (as the situation stands), 8.33 is directed
to Employees Pension Scheme. However, it is calculated on Rs 15,000, 50, for
every employee receiving a basic pay equal to Rs 15,000 or more, Rs 1,250 each
month is diverted into EPS. However, if the basic pay is less than Rs 15,000 then
8.33% of that full amount is directed into EPS. The balance apart from this
8.33% is retained within the EPF scheme,the employee receives his entire share
plus the share retained to his credit in EPF account balance by the Employer.
PF Eligibility Criteria:-

If a person is a salaried employee with a Basic salary and Dearness Allowance is

Rs.15,000 per month, it is mandatory to open an EPF account with his employer.
Organizations with 20 or more employees are required by law to register for the
EPF scheme, while those with fewer than 20 employees can also register
voluntarily. If a person is drawing a salary higher than Rs. 15,000 per month
employee is termed as a non-eligible employee and it is not mandatory for them
to become a member of the EPF, although he can still register with the consent of
his employer and approval from the Assistant PF Commissioner.
The Money In An EPF Account Can Be Withdrawn Based On Certain Rules. And,
These Are:-
A person can withdraw money from the account only after retirement and not during
employment.

But,he/she can make a partial withdrawal if he/she is facing a situation such as a

medical emergency, buying a house or child’s higher education.Person has to submit
the withdrawal claim as per the partial withdrawal rules.

Even though the EPF amount can be withdrawn after retirement, until he reaches the
age 55 years,early retirement is not considered. According to EPFO, he/she is
allowed to withdraw 90% of the corpus a year before the retirement. But, he/she
must not be less than 54 years of age.
According to the new rules of EPFO, after one month of unemployment, 75% of the
EPF amount can be withdrawn. The rest of the 25% can be moved to a new PF
account after the person regain employment. However, a person need to declare the
unemployment to withdraw the amount from his account.

A person does not have to wait for his/her company or employer to approve his EPF
withdrawal anymore. A person can withdraw it directly from the EPFO member
portal if his UAN and Aadhaar card are linked.
EPF Eligibility Criteria for Employers:-

As an employer, a company may be exempt from registering for the EPF scheme if
the employees are fewer than 20 people in the organization,or if a majority of the
employees voice their consent for exemption. In the latter case, a person may still
be subject to certain conditions and will be required to undergo a number of
formalities. In the case where an employee or group of employees is getting
Provident Fund benefits that are on par with or exceeding statutory provisions, an
employer can apply for exemption through Form 1.
How To Apply For An EPF:-

If someone is applying for a new EPF account, he/she will need to do so through
his/her employer. A person will have to provide all previous employment details, if
any, through Form 11, and all family particulars or nomination details in Form 2

If the person is an employer with an organization that employs 20 people or more,

it is mandatory for him to register under the EPF scheme. If his organization
employs less than 20 people, he can still opt to register under the scheme. EPF
registration requires him to submit details of his company, as well as details of
each of the company's owners. A person can register for the EPF scheme on the
official EPFO website.
PF Withdrawal Process:-
The PF withdrawal process can be carried out in the following ways:-
Submitting a physical form for PF withdrawal
The following steps need to be taken:
• Visit the official website of EPFO and download the new composite claim with
Aadhaar/composite claim form without Aadhaar.
• You can submit the composite claim form with Aadhaar without the attestation of
your company or employer.
• The composite claim form without Aadhaar needs to be filled and submitted along
with the attestation of your employer. You have to submit this to the corresponding
EPFO office.
PF Withdrawal Process Online:-
EPFO has introduced the facility to withdraw Employee’s EPF amount online. This
is a much easier process and takes less time than the physical procedure.
There are certain prerequisites for withdrawing the PF amount online through the
EPFO portal. And, they are:
Your UAN must be active and the mobile number that was used for activating the
UAN must be working properly.
The UAN must be linked to your bank account details including your IFSC code,
PAN card and Aadhaar card.
If you fulfil the conditions mentioned above, then you will not require the
attestation of your previous employer for the withdrawal process.
How To Check Eligibility For Online PF Transfer:-

An online transfer facility is available where an employee can transfer his or her
provident fund (EPF) balance with the previous employer to a new employer with
ease. The employee can get his transfer claim attested by either of his employer.
The EPFO does allow transferring funds under certain protocols. Earlier Form 13
was required to be filled out, signed by previous employer and submitted to the
new employer. There were issues with form misplacement and following up with
Human resources of both companies. It explained a lot of issues pertaining to
unclaimed amounts in the EPF. There is a revised Form 13 which can be submitted
to either employers-new or old. If the new employer is a trust which means it is
exempted, then the form needs to be submitted to the old employer only

Your eligibility verification will take place once you enter your account using the
UAN and fill in details of both the employers.
Benefits Of EPF:-

The EPF is a welfare scheme that ensures that all salaried citizens are setting a
portion of their earnings aside in anticipation of their retirement. While many
salaried people do have their own private savings accounts and investments, many
may not have the means or the financial know-how to make the required provisions
for their welfare. So, the EPF comes in handy.

All interest on the EPF is tax-free, as are EPF withdrawals. While you will not be
able to make a complete withdrawal until you are 55 years of age, you can
withdraw up to 90% of your EPF balance if you're nearing retirement and have been
out of employment for 60 days straight. What's more, in a bid to increase the
take-home salary for women, the government has reduced the required monthly
EPF contribution for women employees to 8%. The government has also offered to
pay the EPF contribution on behalf of the employer at 12% for any new employees
and women employees who have been hired before March 2019 for a period of 3
years.
Since EPF increases your savings and makes it compulsory for your employer to
also contribute, find out about it and monitor it to meet your financial needs in the
future.

Contribution towards EPF account provides employees,tax relief under section 80C
(only employees share of contribution).
Covid-19 impact: Govt relaxes rules for withdrawal from EPFO accounts:-

The labour ministry on March 29, 2020 issued a notification allowing millions of
subscribers of the employees’ provident fund organization (EPFO) to withdraw a
portion of their retirement savings with immediate effect amid the Covid-19
lockdown.

As per the gazette notification, EPFO subscribers can withdraw 75% of their
savings or up to a maximum of three months' basic pay and dearness
allowance from their PF account – whichever is lower. Once a subscriber
withdraws the amount, it cannot be replenished after the situation improves.
Drawback of EPF:-

EPF is a debt-based investment scheme which doesn't have any exposure to equity.
This means when inflation is high, a person could be earning negative returns.
Thus, he must look for ways to make his EPF savings grow so he can secure his
future with a higher corpus. A person can consider investing his EPF money, which
enables him to grow his retirement funds easily.