Provident Fund

CHAPTER XVII PROVIDENT FUNDS

264. Provident funds for workers in private sector establishments : o (1) An establishment in the private sector may constitute for the benefits of its worker a provident fund. o (2) Such provident fund shall be constituted in such manner as may be prescribed by rules made by the establishment in this behalf under section 3. o (3) Notwithstanding any thing contained in sub-section 920, the Government may make rules for constitution of provident funds for workers employed in establishments in private sector, and where such rules are made each establishment to which the rules apply, shall comply with the requirements of such rules. o (4) Such provident fund shall b e held and administered by a board of trustees. o (5) Such board of trustees shall consist of an equal number of representatives of the employer and workers employed in the establishment, and a person nominated by the government shall be its chairman. o (6) The representatives of the employer shall be nominated by the employer, and the representative of the workers shall be nominated by the collective bargaining agent. o (7) Where there is no collective bargaining agent in an establishment, the representatives of the worker shall be elected by the workers under the supervision of the director of labour. o (8) All the representatives shall hold office for a period of two years. provided that they shall continue to hold office until their successors enter upon office. o (9) Every permanent worker shall, after the completion of his one year of service in the establishment constituting the provident fund, subscribe to the fund, every month, a sum, unless otherwise mutually agreed, not less than seven per cent and not more than eight per cent of his monthly basic wages. and the employer shall contribute to it an equal amount. o (10) Notwithstanding anything contained in this section an establishment in the private sector shall constitute a provident fund for the benefit of its workers, if three-fourths of the total number of workers employed in it so demand to the employer by an application in writing. o (11) Where a demand for constitution of a provident fund is made under subsection (10), the employer of the establishment shall make necessary rules for its constitution under section 3 within a period of six months and the fund shall start operation before the expiry of that period.

o (12) At lest half of the total accumulations in such provident fund shall be invested for the purpose of any of the following, namely: (a) I.C.B Mutual Fund Certificates (b) I.C.B Unit certificates ; and (c) Government securities including defense and postal saving certificate. o (13) The cost of maintenance of the provident fund shall be borne by the employer o (14) The accounts of the provident fund shall be audited annually at the cost of the establishment in the same manner as the accounts of the establishment are audited: o (15) A statement of accounts of the provident fund, together with the audit report thereon, shall be forwarded to the director of Labour within one month of the submission of audit report. o (16) Where the Government is satisfied that a provident fund constituted by an establishment in the private sector is working satisfactorily and the workers have no complaint against it, the Government may, on the application of the employer of the establishment, by order in writing exempt the establishment from operation of this section. o (17) An establishment constituting a provident fund shall be deemed to be a public institution for the purposes of the provident funds act, 1925 (XIX of 1925). o (18) In this section, establishment in private sector shall mean an establishment which is not owned or managed directly by the government or by any local authority or to which any provident fund rules made by the government or by any local authority does not apply. 266. Board of Trustees (Tea Plantation) : o (1) The Government shall, by notification in the official Gazette, constitute a board of trustees to be called the board of trustees for the tea plantation worker s provident fund. o (2) The board of trustees, shall consist of the following members namely a chairman, three representatives of employers three representatives of tea plantation workers two members who are not connected with tea industry. o (3) Chairman and other members shall be appointed with tea industry. Provided that the members under sub-section 2 (b) and (c) shall b e appointed by the Government in consultation with such organizations of employers and workers as may be recognized by the Government for the purpose.: o (4) The chairman and the other members shall hold office for a term of three years from the date of their appointment: Provided that, notwithstanding the expiry of such term, they shall constitute to hold office until their successors enter upon office. o (5) The chairman and the other members shall perform such duties as are assigned to them under this chapter or by the rules. o (6) The trustee board shall be a body corporate and have perpetual succession and a common seal and shall be the said name sue and be sued.

267. Cost of administration (Tea Plantation) : o (1) The trustee board may levy an administrative charge on the basis of contribution. o (2) The Government in consultation with the board, shall fix such percentage of the total employers and workers contributions as cost of administration. o (3) The employers shall, within fifteen days of the close of every months, pay the charge so fixed to the fund by separate bank draft or cheque. o (4) When the payment of the administrative charge is made by a cheque the collection charge, if any, shall be included in the amount for which the cheque is drawn in respect of the administrative charge. 268. Contributions (Tea Plantation): o (1) Every employer of a tea plantation, which is in existence for more than three years, shall, in respect of every worker other than an apprentice employed in his tea plantation for more than a year, pay to the fund a contribution at the rate of seven and a half per cent of the basic wages for the time being payable to that worker. o (2) Every worker mentioned in sub-section (1) shall pay to the fund a contribution equal to be contribution payable by the employer in respect of him. o (3) Where the amount of any contribution payable under this section involves a fraction of taka, such fraction shall be rounded of to the nearest taka. o (4) If, in any case, the contribution made at the time of coming into force of this act to an existing provident fund is higher than that provided in this section than that rate of contribution shall continue to be made as if this Act had not been enacted, o (5) The total accumulations in the fund shall be held in deposit and shall be invested in the manner prescribed by rules.

Reports: For Provident Fund Management: Provident Fund Balance sheet Provident Fund Income & Expenditure Provident Fund Finally Settled Member Provident Fund Ex-members Fund Provident Fund Laps & Forfeiture A/C Provident Fund Statement of Members Provident Fund Finally Settle Members Provident Fund Employ Information Provident Fund Schedule of Members Provident Fund Schedule of Investment Register Provident Fund Schedule of Encashment Provident Fund Voucher Report Provident Fund Ledger Provident Fund Trail Balance For Gratuity Fund Management: Gratuity Balance sheet Gratuity Income & Expenditure Gratuity Finally Settled Member Gratuity Ex-members Fund Gratuity Laps & Forfeiture A/C Gratuity Statement of Members Gratuity Employee Information Gratuity Schedule of Members Gratuity Schedule of Investment Register Gratuity Schedule of Encashment Gratuity Voucher Report Gratuity Ledger Gratuity Trail Balance