EMPLOYEES PROVIDENT FUNDS AND

MISCELLANEOUS PROVISIONS,1952
 The act extends to the whole of India &
applies to every factory &
establishment in which 20 or more
persons are employed.
SCHEME OF THE ACT

 The act applies to any establishment where there are 20 or

more employee even otherwise the act can be applies on
request of the employees with the consent of the
employers.

 Every employee is covered under the PF scheme from day

1 of his employment.

 Employee means any person employed for wages for any

kind of work but doesn’t include an apprentice/a person
drawing more than Rs.6500 pm
 A contribution of 12% is deducted from
employees wages & an equal share is contributed
by the employer. The aggregated amount is
deposited with the regional PF commissioner.
 In the industries making jute, bidis gum etc for
sick establishment the rate of contribution is 10%
 The amount thus accumulated is refunded to
employees with interest on his retirement, certain
advances are allowed to an employee for
specified purposes.
CONTRIBUTION
 The rate of contribution is 12% & in certain cases
10% of wages .
 Wages means basic wage +DA + retaining
allowances ,if any
 Employers contribution shall be an equal share &
each contribution is calculated to the nearest rupee.
 It is the employers duty in the 1st instant to pay
employers contribution & employees contribution
from the wages of any employers
 Under no circumstance the employers can deduct
the employers contribution from the wages of any
employer.
 Within 15 days after the expiry of every month
the employer shall pay the contribution through
SBI.If an employer makes a default in payment
the same shall be recover from him with penalty
& interest by attachment of his property.
ADVANCES FROM THE FUND
 Advance For Illness

 Advances For Marriage/Post Matriculation

 Education Of Children

 Abnormal Conditions

 Advance To Physically Handicapped Members

ADVANCE FOR ILLNESS-

 A member is allowed non refundable advance

in case of hospitalization for 1 month or major
surgical operation or for TB, leprosy, paralysis,
cancer etc
ADVANCES FOR MARRIAGE/POST MATRICULATION EDUCATION OF CHILDREN

 For this type of advance it is necessary that the

member must have completed 7 years of
membership & max 3 such advances are granted
ABNORMAL CONDITIONS

 If the property of the member has been damaged

by any calamity such as float, earning quake,
riots such advance is granted. The stat Govt. must
declare that such calamity has affected the
general public.
 ADVANCE TO PHYSICALLY HANDICAPPED MEMBERS

 A physically handicapped member is allowed

such advance for purchasing an equipment to
minimize his hardship. Only one advance is given
in a period of 3 years.
Employees Deposit linked Insurance
scheme (EDLI)
 The scheme brought in to force from August
1976.
 The employees who are the members of PF are
automatically covered in this scheme.
 They don’t have to make any contribution in the
scheme.
 Only the employer have to pay the contribution
@ 0.5% of their wages
 The CG contribution @ 0.25%
 The nominees of the employees will get in the
event of death of the member,
 an amount = average balance of previous 12
months
or
 Rs.25,000 whichever is more
 Employees Deposit Linked Insurance Scheme (EDLI)( Sec6-C)

 This scheme brought into force from August 1976.

 The employees who are the members of PF are
automatically covered in this scheme.
 They don’t have to make any contribution in the
scheme.
 Only the employers have to pay the contribution @
0.5% of their wages
 The central govt. contributes @ 0.25%
 The nominees of the employees will get in the
event of death of the member,
 an amount=average balance of previous 12
months or Rs.25,000 whichever is more.
MATTERS TO BE PROVIDED FOR IN THE EDLI SCHEME

 The employees or class of employees who shall be

covered by the insurance scheme.

 The form in which an employee shall furnish particulars

about himself and the members of his family whenever
required.

 The nomination of a person to receive the insurance

amount due to the employee after his death and the
cancellation or variation of such nomination.
 The scales of insurance benefits and conditions
relating to the grant of such benefits to the
employees.

 The registers and records to be maintained in

respect of employees; the form or design of any
identity card ,token or disc for the purpose of
identifying any employee or his nominee or
members of his family entitled to receive the
insurance amount.
CENTRAL BOARD OF TRUSTEES
 For the purpose of this act, the CG constitutes his board
consisting of …….
 Chairman & vice chairman appointed by CG
 The central PF commissioner
 5 officers of CG.
 Not more than 15 persons to represent state
Governments.
 10 persons to represent employers.
 10 persons to represent employees.
FUNCTIONS OF THE BOARD
 It shall administer the fund in such manner as specified by
the scheme

 It shall maintain account of its income & expenditure in the

specified manner.

 It has to submit the accounts duly certified by

CAG(Controller of Auditor general of India)

 It has to submit the annual report to CG of its work &

activities which has to led before each house of parliament.
 EMPLOYEES PENSION SCHEME (Sec 6-A)

 The Employees Pension Scheme was introduced

w.e.f. 16th November 1995
 It is paid to the members on their retirement
under this scheme
THE IMPORTANT PROVISIONS ARE:

1.Out of the employers contribution of 12% an

amount…………..

 8.33% is paid into the Pension fund.

 The remaining 3.67% is paid into the PF

accounts as before.
 2.The Central Government contribution an
amount is 1.16% of employees wages.
 3.Superannuation pension,retiring pension or
permanent total disablement pension to the
employees of any establishment or class of
establishment to which the EPF act applies;

 4.Widow or widower’s pension ,children pension

or orphan pension payable to the beneficiaries of
such employees.
 5. A member shall be entitled to superannuation
pension if he has rendered eligible service of 20
years or more & has retired on attaining 58
years.

 6.A member shall be entitled to retirement

pension if he has rendered eligible service of 20
years or more & has retired before 58 years.
 7.Short Service Pension-If he has rendered eligible
service of 10 years or more but less than 20
years.

 8.Monthly Pension: This is based on a formula =

(Pensionable Salary x Pensionable Service) / 70.
 (i) Pensionable Salary = average monthly salary
over 12 months immediately preceding the date
of exit from the scheme.(retirement)
 (ii) Pensionable Service = service in years
rendered by the member for which contributions
have been received.
 Normally this would be limited to Rs. 6,500.00
p.m unless certain enhanced contributions are
made by the employer
 The SC declared that the scheme is beneficial to
employees in every way & also perfectly
constitutional.

 Nomination with 1 difference from gratuity act.

 Female member can exclude her husband & his

family from the nomination.