Employee’s Provident Funds and

Miscellaneous Provisions Act, 1952

Object of the EPF Act, 1952 is to provide for the
institution of—
 Provident funds;
 Pension fund and
 Deposit linked insurable funds for employees in
factories and other establishments.
Application of the Act
 It extends to the whole of India except State of Jammu and
Kashmir
 It covers every establishment in which 20 or more persons are
employed and
 subject to certain conditions and exemptions even if they
employ less than 20 persons each
 It applies shall continue to be governed by this Act even though
that the number of persons employed therein at any time falls
below twenty.
PRESENT RATES OF CONTRIBUTION
CONTRIB SCHEMES ADMINITRATION
UTION ACCOUNTS

By EPF EPS EDLI EPF & EPS EDLI

12%; 10%; ----------- --------
Employee 8% ----
3.67% 8.33% 0.50% 1.1% .01%
Employer
 10%Rate is applicable for any establishment in which
less than 20employees are employed.
 Any sick industrial company and which has been
declared as such by the Board for Industrial and
Financial Reconstruction.
 Any establishment which has at the end of any
financial year, accumulated losses; and
 Any establishment in following industries:-
(a) Jute(b)Beedi (c)Brick(d)Coir and(e)Guar gum Factor
 UNDER EPF ---The contributions are payable on
maximum wage ceiling of Rs.15000/-
 The employee can pay at a higher rate and in such case
employer is not under any obligation to pay at such
higher rate.
 To pay contribution on higher wages, a joint request
from Employee and employer is required;
 For an International Worker, wage ceiling of 15000/-is
not applicable
UNDER EPS---Contribution is payable out of the
employer’s share of PF and no contribution is payable
by employee.
Pension contribution not to be paid, when an
employee crosses 58 years of age and is in service
(EPS membership ceases on completion of 58years).
When an EPS pensioner is drawing Reduced Pension
and re-joins as an employee.
 In both the cases the Pension Contribution @8.33% is
to be added to the Employer Share of PF.(Pension
contribution is not to be diverted and total employer
share goes to the PF).
 Incase an employee, who is not existing EPF/EP
member joins on or after 01-09-2014 with wages above
Rs15000/-In these cases the pension contribution part
will be added to employee share, EPF.
Sec.5-A ------Central Board :
The Central Board of Trustees, EPF is a statutory body constituted by
the Central Government under the provisions of section 5A of the
Employees' Provident Funds and Miscellaneous Provisions Act,1952
(Act 19 of 1952). The tenure of the Board is five years. The
constitution of the Board as per section 5A of the Act is as under:
 Chairman u/s 5A(1)(a)
 Vice Chairman u/s 5A(1)(a)
 Central Provident Fund Commissioner (ex officio) u/s 5A(1)(aa)
 5 Central Government Representatives u/s 5A(1)(b)
 15 State Government Representatives u/s 5A(1)(c)
 10 Employers Representatives u/s 5A(1)(d)
 10 Employees Representatives u/s 5A(1)(e)
Sec.5-AA ---- Executive Committee
Executive Committee is a statutory Committee, which is
constituted from amongst the members of the Central Board of
Trustees by the Central Government under Section 5AA of the
Act. Its purpose is to assist the Central Board of Trustees, EPF in
the discharge of its functions relating to administrative matters.
The term of the Committee is two year and six months. As
per section 5AA, the constitution of the Committee is as under:
 Chairman u/s 5AA(1)(a)
 2 Central Government Representatives u/s 5A(1)(b)
 3 State Government Representatives u/s 5A(1)(c)
 3 Employers Representatives u/s 5A(1)(d)
 3 Employees Representatives u/s 5A(1)(e)
 Central Provident Fund Commissioner (ex officio) u/s 5A(1)(f)
 Sec.5 –B. State Board (Regional Committee):
 EPF for the States are constituted under the provisions of Para 4 of
Employees' Provident Fund Scheme - 1952. The Chairman, Central
Board of Trustees (Employees' Provident Fund) is the competent
authority to constitute/reconstitute the Regional Committee(EPF)
for the states under Para 4 of the Employees' Provident Fund
Scheme - 1952. The term of each Regional Committee is three
years from the date of notification in the Official Gazette. The
constitution of the Committee is as under:
 Chairman under Para 4(1)(a)
 2 State Government Representatives under Para 4(1)(b)
 2 Employers Representatives under Para 4(1)(c)
 2 Employees Representatives under Para 4(1)(d)
 Non Official members of Central Board ordinarily resident in the
State under Para 4(1)(e)
Sec.6 – Contributions and matters which may be
provided for in schemes;
Sec.6-A --- Employees’ Pension Scheme
Sec.6-C– Deposit linked Insurance Scheme
Sec.7-D – Employees Provident Funds Appellate
Tribunal
Sec.13– Inspectors
Sec.14 -- Penalties
Sec.14 B – Power to recover damages— it is not unguided,
uncontrolled and arbitrary and hence not violative of Article 14.
Organo Chemical Industries & Anr vs Union Of India & Ors,
1980 SCR (1) 61 – Recovery of damages equivalent to the
amount of arrears from a habitually defaulting employer. After
giving the employees’ interest on the delayed payments made
by the employer, the remaining amount should not go to the
Government revenue but should be deposited in the fund
constituted under Section 5 of the Act.
Gen.Manager Ernakulam Dist. Coperative Bank Ltd v.
Regional Provident Fund Commissioner and another,
(2001) ILLJ 1662 Ker
Presidency kid leather (p)Ltd v. Regional Provident
Fund Commissioner, (1999) IIILLJ 980 Mad