EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT.

1952 & THE SCHEME

ELIGIBILITY ANY PERSON WHO IS EMPLOYED FOR WORK OF AN ESTABLISHMENT OR EMPLOYED THROUGH CONTRACTOR IN OR IN CONNECTION WITH THE WORK OF AN ESTABLISHMENT. APPLICABILITY EVERY ESTABLISHMENT WHICH IS A FACTORY ENGAGED IN ANY INDUSTRY SPECIFIED IN SCHEDULE 1 AND IN WHICH 20 OR MORE PERSON ARE EMPLOYED. ANY OTHER ESTABLISHMENT EMPLOYING 20 OR MORE PERSONS WHICH CENTRAL GOVERNMENT MAY BY NOTIFICATION, SPECIFY IN THIS BEHALF. ANY ESTABLISHMENT EMPLOYING EVEN LESS THAN 20 PERSONS CAN BE COVERED VOLUNATARILY UNDER SECTION 1 (4) OF THE ACT. CINEMA THEATRES EMPLOYING 5 OR MORE PERSONS

Not Applicable To
The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)

16(1)(b) Establishments under the control of state/central Govt.& employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules framed by the Govt.
16(1)(c) Establishment set up under any central, provincial or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules.

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 & THE SCHEME
BENEFITS EMPLOYEES COVERED ENJOY A BENEFIT OF SOCIAL SECURITY IN THE FORM OF AN: 1. FINANCIAL NEST EGG TO WHICH EMPLOYEES AND EMPLOYERS CONTRIBUTE EQUALLY THROUGHOUT THE COVERED PERSONS EMPLOYMENT. THIS SUM IS PAYBLE NORMALLY ON RETIREMENT OR DEATH. 2. EMPLOYEES PENSION SCHEME 3. EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME.

Contribution under EPF Scheme,1952

1. Employees : 12% on (Basic + DA) 2. Employer : (a) 3.67% on Basic + DA (b) Administrative Charges : 1.10% on Basic +DA

The Employees Pension Scheme, 1995

Contribution 1. Employee: Not required 2. Employer : (a) 8.33% on Basic + DA It is to be noted that where the pay of the member exceeds Rs. 6,500/- per month, the contribution payable by the employer will be limited to the amt. payable on his pay of Rs. 6,500/- only.

Employee Pension Scheme, 1995

Pension for life: (Pensionable Pay X Pensionable Service) / 70 To the member, on superannuation/retirement and invalidation: To the members of the family upon death of the member: Pension to Widow/Widower for life or till re-marriage: Facility for capital return (corpus accretion) on option formula basis Commutation of pension up to 1/3rd of pension amount Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years. Superannuation/retirement pension under the new scheme will be payable on fulfilling: Minimum 10 years eligible service and Attaining age of 58 years.

The Employees Deposit-Linked Insurance Scheme, 1976

Contribution

1.Employees : Not required 2. Employer : (a) 0.5% on Basic + DA (b) Administrative Charges : 0.01% on Basic +DA Where the monthly pay of an employee is more than Rs. 6,500 the contribution payable in respect of him by the employer is limited to the amts payable on a monthly pay of Rs. 6,500 only.

EDLI Scheme
Assurance Benefit : The benefit provided under the Employees' Deposit Linked Insurance Scheme is called Assurance Benefit. On the death of the member while in service, the nominee or any other person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under Employees' Deposit Linked Insurance Scheme . Scale of Assurance Benefit : 24.6.2000 the amount of benefits has been increased to 60,000/ Further increased to Rs 100,000 from 2010

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 & THE SCHEME

PAYMENT OF CONTRIBUTION A/c A/c A/c A/c A/c 1 EPF EMPLOYERS 12% + EMPLOYEES 3.67% = 15.67 % 2 EPF ADMIN CHARGES 1.10% 10 EPS EMPLOYEES 8.33 % 21 EDLI 0.50 % 22 EDLI ADMIN CHARGES 0.01%

TOTAL = 25.61%

Contributions

Scheme/Fund EPF
EPS EDLI Total

Employer 3.67% 1.1%

8.33%* .5%* .01%* 13.61%

Employee 12%

Government

Total 16.77%

1.16%*

9.49% .51%

12%

1.16%

26.77%

* Subject to a maximum salary of Rs 6500. Therefore, employers contribution to the Pension Fund is restricted up to a maximum of Rs 541.

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 & THE SCHEME

PAYMENT OF CONTRIBUTION THE EMPLOYER SHALL PAY THE CONTRIBUTION PAYBLE TO THE EMPLOYEES PROVIDENT FUND, EMPLOYEES DEPOSITE LINKED INSURANCE, AND EMPLOYEES PENSION FUND IN RESPECT OF THE MEMBER OF THE EMPLOYEES PENSION FUND BY HIM DIRECTLY BY OR THROUGH A CONTRACTOR. IT SHALL BE THE RESPONSIBILITY OF THE PRINCIPAL EMPLOYER TO PAY THE CONTRIBUTIONS PAYBLE TO THE EPF, EDLI AND EPSBY HIM SELF IN RESPECT OF THE EMPLOYEES DIRECTLY EMPLOYED BY HIM AND ALSO IN RESPECT OF THE EMPLOYEES EMPLOYED BY OR THROUGH A CONTRACTOR.

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 & THE SCHEME
CLARIFICATION ABOUT CONTRIBUTION AFTER REVISION IN WAGE CELLING FROM Rs.5000 to Rs.6500 w.e.f. 1-62001 PER MONTH THE GOVERNMENT CONTINUE TO CONTRIBUTE 1.16% UPTO THE ACTUAL WAGE OF MAXIMUM Rs.6500 PER MONTH TOWARDS EMPLOYEES PENSION SCHEME. THE EMPLOYERS SHARE IN THE PENSION SCHEME WILL BE Rs.541 w.e.f. 1-6-2001.

UNDER EMPLOYEES DEPOSIT-LINKED INSURANCE SCHEME THE CONTRIBUTION @ 0.50% IS REQUIRED TO BE PAID UPTO A MAXIMUM LIMIT OF Rs.6500. THE EMPLOYER WILL PAY ADMINISTRATIVE CHARGE @ 0.01% ON MAXIMUM LIMIT OF Rs.6500. THE EMPLOYER ALSO WILL PAY ADMINISTRATIVE CHARGES @ 0.01% ON MAXIMUM LIMIT OF Rs.6500 WHEREAS AN EXEMPTED ESTABLISHMENT WILL PAY INSPECTION CHARGES @ 0.005% ON THE TOTAL WAGES PAID.

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 & THE SCHEME
CLARIFICATION ABOUT CONTRIBUTION NOTES : THE ABOVE CLARIFICATION IS GIVEN BY TAKING WAGES UPTO A MAXIMUM OF Rs.6500 TOWARDS WAGE (BASIC+DA). SINCE AN EXCLUDED EMPLOYEE i.e. DRAWING WAGES MORE THAN Rs.6500 CAN ALSO BECOME MEMBER OF THE FUND AND THE SCHEMES ON JOINT REQUEST AND IF, FOR INSTANCE, SUCH AN EMPLOYEE IS GETTING Rs.10,000 PER MONTH, HIS SHARE TOWARDS PROVINDENT FUNDCONTRIBUTION WILL BE Rs.1200 e.g. 12% AND EMPLOYERS SHARE TOWARDS PROVIDENT FUND CONTRIBUTION WILL BE Rs.659 AND Rs.541 TOWARDS EMPLOYEES PENSION FUND.

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT. 1952 & THE SCHEME
DAMAGES LESS THAN 2 MONTHS @17% p.a. 2 MONTHS & ABOVE BUT LESS THAN UPTO 4 MONTHS @ 22% p.a. 4 MONTHS & ABOVE BUT LESS THAN UPTO 6 MONTHS @ 27% p.a. 6 MONTHS & ABOVE @ 37 % p.a. PENAL PROVISION LIABLE TO BE ARRESTED WITHOUT WARRANT BEING A COGNISABLE OFFENCE. DEFAULTS EMPLOYER IN PAYING CONTRIBUTIONS OR INSPECTIONADMINISTRATIVE CHARGES ATTRACT IMPRISONMENT UPTO 3 YEARS AND FINES UPTO Rs.10,000 (Sec.14). FOR ANY RETROSPECTIVE APPLICATION, ALL DUES HAVE TO BE PAID BY EMPLOYER WITH DAMAGES UPTO 100% OF ARREARS.