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EMPLOYEES’ PROVIDENT FUNDS AND

MISCELLANEOUS PROVISIONS ACT, 1952

MANORANJAN DHAL
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) in which 20
or more persons are employed
 Any other establishment employing 20 or more
persons which, central government my, by
notification, specify in this behalf
 Any establishment employing even less than 20
persons can be covered voluntarily
 Drawing salary for Rs. 15,000 PM (Basic +DA) (
raised from Rs. 6500 – amendment 2014)
BENEFIT

 Unattachable and unwithdrawable (except in


severely restricted circumstances like buying
house, marriage/education, etc.) financial nest
egg
 employee and employer contribute equally

 This sum is payable normally on retirement or


death.
 Other benefits – Employees’ Pension Scheme and
Employees’ Deposit Linked Insurance Scheme
PAYMENT OF CONTRIBUTION

 The employer shall pay the contribution payable


to the EPF, DLI and Employees’ Pension Fund in
respect of the members of the Employees’
Pension Fund employed by him directly by or
through a contractor
 It’s the responsibility of the principal employer
to pay the contribution for employees employed
by him or through a contractor
RATE OF CONTRIBUTION

SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S

Provident Fund 12% Amount > 8.33% Nil


Scheme

Insurance Scheme Nil 0.5 Nil

Pension Scheme Nil 8.33% (Diverted 1.16%


out of Provident
Fund)
PETROLEUM WORKERS UNION REPRESENTED BY REGIONAL
SECRETARY, HINDUSTAN PETROLEUM CORPORATION LTD. AND
ORS. VS. HINDUSTAN PETROLEUM CORPORATION LTD.,
REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR
AND ORS. [(2004)

 The liability to pay the Provident Fund


contribution by the Principal Employer would
arise even in respect of an employee under a
Contractor
 The Principal Employer may recover all such
amounts paid in the form of contributions for
contract employees from the concerned
Contractor
ADMINISTRATION OF EPF SCHEME
 Compulsory from the first day of his
appointment
 Contribution is 10% for establishment having
less than 20 employees
 Use Form 2 for nomination
 Form 5 – details of the employee joining the
organization
 Form 10 – a list of employees leave the
organization with date of leaving and reasons
EMPLOYEES’ PENSION SCHEME
 For members
 Pension payment for life on retirement/superannuation
 For life on invalidation
 Family members
 Upon the death of the member
 Spouse for life or until remarriage
 To children (two at a time) till they attain 25 years along
with pension payment to spouse
 To nominee dependent parents for life in case of
member is unmarried or having no eligible family
member
EDLIS
 .5% of basic salary PM capped at 15,000 PM
(raised from 6500) as premium
 Linked to balance in PF
 Coverage is higher of below two amount
 20 times the average wage of past 12 months (upto
(6500 rupees) i.e. 1,30,000 rupees or
 Full amount of PF upto 50,000 rupees and 40% of the
balance
 If the insurance by private insurer instead of EDLI
better benefit also allowed
PF WITHDRAWAL
Type of Withdrawal Condition Amount Receivable

24 months wage (basic+DA) or members own


Purchase of site for 5 years membership share of contribution +Co's share of
construction of house in the fund contribution with interest

36 months wage (basic+DA) or members own


5 years membership share of contribution +Co's share of
Construction of House in the fund contribution with interest

36 months wage (basic+DA) or members own


5 years membership share of contribution +Co's share of
purchase of dwelling flat in the fund contribution with interest
5 years from the date
2nd Advance - Alteration of of completion of 12 months basic or members own contribution
house house with interest
10 years from the
3rd Advance - Alteration of date of completion of 12 months basic or members own contribution
house house with interest
PF WITHDRAWAL
Type of Withdrawal Condition Amount Receivable
Withdrawal for repayment
of loan to state govt. 10 years from the
Cooperatives, Nationalized date of completion of 36 months wage (basic+DA) or members own
Bank house share of contribution
6 months wages (basic+DA) or his share of PF
Illness, hospitalization whichever is less.
Advance from the fund for 7 years of
marriage of membership with min
self/son/brother/sister/dau balance of 1000
ghter rupees 50% of members own share of contribution
7 years of
membership with min
Advance from the fund for balance of 1000
education of son/daughter rupees 50% of members own share of contribution

more than 55 years


Option for withdrawal for age. LIC policy for 90% of both contributions. Payment to be made
investment in Pension Pension to LIC directly.
CIRCUMSTANCES OF PF FINAL SETTLEMENT

 On retirement after the age of 55


 On retirement as a result of total permanent
disablement
 Migrating from India for settlement or employment
abroad
 Termination upon mass retrenchment
 VRS
 Termination of Job and remaining unemployed over two
months
 Leaving a job covered by Act and joining a job not
covered by Act
INTERNATIONAL WORKER

 There is no salary or wage ceiling


 Apply to both expatriates and Indian deputed
abroad
 With effect from 1st Nov. 2008
RECOVERY OF DAMAGE FOR DEFAULT PAYMENT
Period % of arrears per annum
< 2 months 7%
≥2 & < 4 Months 22%
≥ 4 < 6months 27%
≥ 6 Months 37%

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