This action might not be possible to undo. Are you sure you want to continue?
To provide for the following three µBenefits¶ : 1. Provident Fund 2. Pension 3. Employee¶s Deposit Linked Insurance
Provident Fund (PF) Amity Business School A lump sum payment to take care of income after retirement (retiral income) .
Pension Amity Business School An annuity payment to take care of income after retirement (retiral income) .
Employee¶s Deposit Linked Insurance Amity Business School (DLI) An employer funded group insurance for employees .
1976 4. The Employees Pension Scheme.1952 2. . The Employees Provident Funds Scheme. The Employees Family Pension Scheme. 1. 1971 3.1995 Note: The Employees Family Pension Scheme. 1971 was discontinued and its assets transferred to the Pension Scheme when the Pension Scheme came into force in 1995. The Employees Deposit Linked Insurance Scheme.Amity Business School The following 4 schemes have been framed under the act by the central govt.
Family Pension Amity Business School A pension payable to the family of the pensioner after his death. .
misery and insecurities of life.Social Security Amity Business School µSocial Security¶ is µpublic assistance¶ or µgroup support¶ in old age. and not only for the employed. disablement. ( adapted from Art. The support or assistance is usually contributory-employees. Employee µBenefits¶ are an example. 41 of the Constitution of India). unemployment and in other cases of undeserved want. employers and the State. Social Security can be for citizens. . generally. sickness.
in industries as specified in Schedule-I to the Act (76 industries are specified in Sch-I). railways. universities. construction. hotels. socities and associations.Amity Business School Applicability (S.500 per month [S.) Central Govt. The Act is applicable only to such µemployees¶ of these factories and other establishments whose pay does not exceed Rs 6. plantations. major ports. 2(f)]. To every establishment employing 20 or more in industries as given in the Appendix to the Act ( The Appendix lists 50 industries including mines. trading and commercial establishments. schools. transport .1) To factories employing 20 or more. clubs. etc. oilfields. . colleges. µcontrolled industries¶ (as notified by the Central Government under Industries Regulation and Development Act 1952). cinemas. can extend applicability to establishments employing less than 20 by a notification after giving 2 month¶s notice.
500 per month are entitled get benefits under the Act ( are covered) . and includes an apprentice [S.Employee Amity Business School Means any person employed directly or indirectly through a contractor. 2(f) of the Act] Only such employees whose µpay¶ does not exceed Rs 6.
(Dearness Allowance). like a lawyer may be retained for an annual payment + per day remuneration for appearance in courts. D. µRetaining Allowance¶ and cash value of food concessions admissible. whether he works regularly or only when required. .A.Pay Amity Business School Includes basic pay. µRetaining Allowance¶ means an allowance paid for retaining the employee in employment.
33%) from out of the 12% already contributed towards PF Nil 1. which was discontinued in 1995) Deposit Linked Insurance (DLI) ( since 1976) (8. Total=0.01% towards administrative expenses of the Deposit Linked Insurance Fund).Contributions Benefit Employer¶s Contribution ( % of salary) Employee¶s Contribution ( % of salary) Amity Business School Central government¶s Contribution ( % of salary) Nil Provident Fund (PF) 12% ( 10% in the case of sick industries) 12% ( 10% in the case of sick industries) Pension ( w. 1995.f.5% (+ 0.e.16% 0.51% 12. instead of Family Pension.51% Nil Nil CTC on account of all µBenefits¶ under the EPF Act .
voluntary retirement. closure or death of the employee ( payable to widow/ widower/ children/ orphan) How Much Payable: Accumulated balance including employees contribution and 3.Provident Fund Benefits Amity Business School When Payable: Payable on µSuperannuation¶. retirement on permanent total disablement.33%)of the employer¶s contribution+ accumulated interest till the day PF becomes payable µSuperannuation¶ means retirement on attaining the age of retirement .67% (12%-8. retrenchment.
acquisition of a house site. marriages. etc. education of children etc. payment of various loans. Advances are permissible for meeting expenses on illness.PF-Benefits (Withdrawals and Advances from PF) Amity Business School Withdrawls are permissible from the Provident Fund Account of an employee for various purposes including purchase or construction of a house. .
Pension-Benefit Amity Business School When Payable: Payable on µSuperannuation¶.: µPensionable Service¶ means the completed numbers of years of service. Pensionable Service/ 70 Note 1.:' Pensionable Salary¶ is average salary received in the last year before retirement. not acceding Rs 6. It is calculated using a different formula. permanent total disablement or death ( payable to widow/ widower/ children/ orphan) How much payable: Full Pension (after a µMinimum Qualifying Service¶ of 20 years)= Pensionable Salary. µShort Service Pension¶ is payable after a minimum of 10 years of service but less than 20 years. .500 per month 2. retirement after a minimum qualifying service of 10 years. 3.
Deposit Linked Insurance (DLI)-Benefit Amity Business School When Payable: Payable on death or µPermanent Total Disability¶ to the family How much payable: Average balance in the account of the deceased during the preceding 12 months.000 and a maximum of Rs 60.000. . subject to a minimum of Rs 35. including interest.
. He can recover damages not exceeding the amount of arrears (S. amount due. He also decides disputes regarding applicability. etc.CPFC Amity Business School Central Provident Fund Commissioner (CPFC) is the CEO for the administration of the Act. 14-B).7-A). (S.
It is punishable with imprisonment up to three years.Offences and Penalties Amity Business School Default in payment of contribution by the employer is a cognizable offence( Police can arrest without warrant after the CPFC lodges an FIR) [S. 14-AB] In case of default in payment of the employee¶s contribution which has been deducted by the employer from the employee¶s wages. the imprisonment will not be less than one year [S. [S. 14] . 14-AB].