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%