Presentation on Employees Contribution to Provident Fund Subject : accounts Professor : sandeep

OUR GROUP MEMEBERS

Zeba

Pooja

Shilpa

Mallik
Ankit

DEFINITION
A fund in which subscriptions or deposits of any class or classes of employees are received and held on their individual accounts, and includes any contributions and any interest or increment accruing on such subscriptions, deposits or contributions under the rules of the fund

GOVERNMENTS THREE SCHEMES

The Employees Provident Fund Scheme, 1952 (For establishment of Provident Fund for employees ) The Employees Pension Scheme 1995 (For providing pension benefits to employees) The Employees Deposit Linked Insurance Scheme, 1976 (For providing life insurance benefit to employees who die while in service.)

APPLICABILITY

To every factory employing 20 or more persons. Any establishment to which the Act applies shall continue to be governed by the Act even if the number of persons employed therein at any time falls below.

NON APPLICABILITY
This act does not apply to the following:

Co-operative Societies Establishments under the control of the Central or State Government Establishment set up under any Central, Provincial or State Act Establishments Exempted : (On account of Financial Problems and other Circumstances)

Employee :

Every employee employed in or in connection with the work of a factory or other establishment covered by the schemes other than an excluded employee is entitled and required to become a member of the fund from the date of joining the factory or establishment.

Excluded Employee :

An employee who has withdrawn the full amount of his accumulations in the fund on retirement from service after attaining the age of 55 years or Before migration from India for permanent settlement abroad or for taking employment abroad.

An employee whose pay exceeds Rs. 6,500 per month ( he continues to be a member but his contributions are payable on the basis of Rs. 6,500 per month)

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

Contributions:

It provides for two types of contributions : 1. Employers contribution 2. Employees contribution Both of them contribute to the fund at the Rate of 12% of i. The basic wages + ii. Dearness Allowance + iii. Retaining Allowance Payable to employees per month

BENEFITS UNDER EPF

Payment of accumulation plus interest on retirement, resignation, death. Partial withdrawals permitted for specific purposes:
acquiring house or site o Addition and substantial alterations of the dwelling house o marriage of self and dependents o education of children o treatment of illness o Purchase of equipment by physically handicapped employees.
o

No voluntary compliance by employers. Lack of awareness among establishments regarding compliance and submission of returns. Lack of awareness among the employees regarding social security benefits. Wage ceiling at Rs. 6500/-. Delay in settlement of claims / grievances due to heavy workload.