EPF AND MP ACT, 1952

By
Shashank Singh
WHAT AM I REQUIRED TO PAY UNDER THE ACT

Employee Employer Employer Employer Employer Employer

share share Admin Share contributi Admin
towards towards Charges towards on Charge on
PF PF on PF Pension towards EDLI
Contributi Contributi EDLI
on on
12% of 3.67% of 0.85% of 8.33% of 0.5% of .01% of
wages* wages wages , wages wages wages,
Min Rs Min Rs
500 200
WHAT ARE THE BENEFITS AVAILABLE
TO THE EMPLOYEE
 Compulsory savings in the form of Provident Fund
with contribution from EE and ER\
 Tax free savings (EEE)
 Highest interest rate (interest on monthly running
balance)
 Partial Withdrawal for specific purpose like, illness,
marriage, education, house etc.
 Insurance up to Rs 6 lakh in case of death of
employee in service.
 Pension under EPS 95 (Member Pension, Spouse
Pension, Children Pension, Disability Pension,
Nominee Pension etc)
 Contribution and Benefits
Ms.Nita Joined
on
01.03.2000 at
the age of 25. PF PENSION INSURANCE
Contribution SCHEME SCHEME SCHEME
capped on
Statutory
Wage limit

No
contribution RS 6,95,322 RS 3,70,071 Contribution
from Employee

Member Benefit up to Rs 6
lac on Death of
Benefits after
33years of service
RS 28,42,605 Pension member (while in
RS 7,500 pm service)
 Use Power of Compounding

•Ms Nita Joined

on 1-3-2000 PF BALANCE WITH 33 YEARS OF SERVICE
3000000
•Joined at 25 Y
and retired at
2500000
58 Y
•Total Years of
service -33 Y 2000000

•Contribution
Amount in Rs

capped at 1500000
statutory wage
limit 1000000
•Contribution
to PF- Rs
6,95,322 500000

•Interest
Earned- Rs 0
21,47,283 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

• PF Balance years of service

after 33 years-
Cumulative Cont Cumulative Int PF BALANCE
Rs 28,42,605
CONCERNS OF EMPLOYEES WORKING IN
CONSTRUCTION & BUILDING INDUSTRY

MIGRANT WORKER, HOW WILL I GET BENEFIT,

FREQUENT JOB CHANGE.
 UAN (Universal Account Number).
 All benefits based on UAN
 Employee needs to be enrolled for UAN & thereafter same UAN
can be used.
 Seed UAN with Aadhaar & Bank Account.
 Know your PF balance by giving missed call at 011-22901406.
 Use EPFO App (Android Version) to view your pass book and
UAN details.
 WHAT IF I FAIL TO EXTEND PF
BENEFIT TO ELIGIBLE EMPLOYEES
 Proceedings under sec 7A of the Act to determine the dues
payable by the employer
 Dues to be determined from the date employee/employees
entitled for membership (no limitation period)
 Employer liable to pay both shares in case PF was not deducted.
 Employer liable for action u/s 405 of IPC in case EE share was
deducted and not deposited.
 Recovery of assessed dues under sec 8B to 8G of the Act.
 Interest under sec 7Q and Damages under sec 14
 Prosecution under sec 14 of the ACT.
 All the above actions can be taken even in case of non-
enrollment of employees engaged through the contractor
WHY SHOULD I ENROLL NOW
 Employees’ Enrollment Campaign 2017
 Employer can file declaration in respect of
employees working during the period
01.04.2009 to 31.12.2009 and not extended
PF Membership
 Employer need not pay EE Contribution for the
period from date of enrollment to 31.12.2016
(Provided EE share was not deducted)
 No Damages (only token amount @ Rs 01/- pa)
 Administrative charges need not be paid for the
period
WHY SHOULD I ENROLL NOW
 Employees’ Enrollment Campaign 2017
 Employer can file declaration in respect of
employees working during the period
01.04.2009 to 31.12.2009 and not extended
PF Membership
 Employer need not pay EE Contribution for the
period from date of enrollment to 31.12.2016
(Provided EE share was not deducted)
 No Damages (only token amount @ Rs 01/- pa)
 Administrative charges need not be paid for the
period
WHY SHOULD I ENROLL NOW
 Only ER share should be paid along with
interest under sec 7Q
 No verification by department
 Declaration filed by the establishment will be

accepted.
 In case establishment fails to declare and

subsequently it is found that the

establishment did not extend PF membership
to eligible employees all action would be
taken.
 HOW TO FILE DECLARATION
 In case establishment is not covered apply online
for coverage.
https://unifiedportal.epfindia.gov.in/
 Obtain UAN for the employees
 UAN can be obtained through the unified portal
 File Declaration online
 Please visit http://cams.epfoservices.com/epfo
 Click on declaration form and fill the details
 Make remittance within 15 days.
 CONSIDER PF AS INVESTMENT IN HUMAN
CAPITAL AND NATION BUILDING

ANY QUESTIONS?