The Employee's Profident Fund Act, 1952

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The Employee's Profident Fund Act, 1952

• HUMAN RESOURCE DEPARTMENT

By Rajasekar
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The Employees Provident Fund Act 1952

• The Employees Provident Funds Act 1952
• Employer role responsibility
• Employee role responsibility
• The Employees Pension Scheme 1995
• The Employees Deposit-Linked Insurance Scheme
  (EDLI) 1976
• List of Forms

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Introduction

• Salary consists of two parts i.e. earnings
  deductions
• Provident Fund is one of the statutory deduction
  done by the employer at the time of salary
  payment
• Provident Fund is governed by the Employees
  Provident Fund Act 1952

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The Employees Provident Fund Act 1952

• Introduction
• Provident Fund has come into force to give better
  future to employees on their retirement his
  dependants in case of his death during employment
• The Employees Provident Funds Act 1952 is
  compulsory contributory fund for the future of an
  employee after retirement or for his dependents
  in case of his early death
• Act is applicable to all states of India except
  Jammu and Kashmir
• Eligibility
• Every industry employing 10 or more persons (180
  industries are specified in Schedule 1 of the
  Act)
• Every industry employing 10 or more persons which
  the Central Govt. may notify
• Any other establishment notified by the Central
  Government even if employing less than 10 persons

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The Employees Provident Fund Act 1952

• Eligibility Entitlement
• Every employee employed directly / through a
  contractor who is in receipt of wages are
  eligible to become a member of the fund
  (exception - Apprentice under the Apprentices Act
  and casual laborers)
• Irrespective of permanent / probationary
  employees, all employees are eligible for joining
  the PF scheme from the date of joining the
  service
• Minimum 10 of the basic pay for establishments
  employed less than 10 persons sick industries
  declared by necessary authority Jute, Beedi ,
  Brick, Coir Guar Gum Industries / Factories
• Other industries maximum 12 of the basic pay
• A member can contribute voluntarily more than
  statutorily prescribed rate (upto 100 of basic
  salary) which will be transferred to his PF A/c

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The Employees Provident Fund Act 1952

• Calculation
• 12 contribution by the employee is directly
  transferred to his Provident Fund A/c
• 12 is contributed by the employer out of which
  8.33 is credited to Employee Pension Fund and
  the balance 3.67 is transferred to PF A/c of the
  employee
• 1.10 Administration charges on total wages are
  payable by the employer
• 0.50 EDLI calculated on total EDLI slab (Rs.
  6500) wages and payable by the employer towards
  EDLI fund
• 0.01 EDLI Administration charges calculated on
  total EDLI slab wages are payable by the employer

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The Employees Provident Fund Act 1952

• Benefits
• Employees can take advances / withdraw the PF in
  case of retirement, medical care, housing, family
  obligation, education of children financing of
  life Insurance Polices
• Upto 90 of the PF amount can be withdrawn at the
  age of 54 years or before one year of actual
  retirement
• PF amount of the deceased member is payable to
  nominees / legal heirs
• Equal contribution by the employer
• present interest rate _at_ 8.5
• PF A/c can be transferred if any member changes
  from one establishment to other where the PF
  Scheme is applicable

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The Employees Provident Fund Act 1952

• Interest
• Interest is credited to the members PF A/c on
  monthly running balance
• Interest rate is fixed by the Central Government
  in consultation with the Central Board of
  trustees of EEPF every year during March / April
• The present rate of interest is 8.5
• Nomination
• The member can nominate other person / persons to
  receive the Fund amount in the event of his death
• The nomination details provided by the members
  are maintained at the Regional Provident Fund
  Office for use in the event of death of the member

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The Employees Provident Fund Act 1952

• Annual Statement of Account
• After the close of each year of contribution,
  annual statement of account will be sent to each
  member through establishment where the member was
  last employed through form 23.
• Form 23 will show the opening balance at the
  beginning of the year, contributions during the
  year, the amount of interest credited at the end
  of the period and the closing balance at the end
  of the year
• If any error is noticed in Form 23, the member
  shall bring the same to the notice of the PF
  Office through employer within 6 months from the
  date of receipt of the statement

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The Employees Provident Fund Act 1952

• Full Settlement
• PF A/c settled immediately under the
  circumstances
• Retirement after 58 years
• Retirement on account of permanent incapacity
• Termination of service on retrenchment
• Voluntary Retirement Scheme (VRS)
• Permanent migration from India to settle abroad /
  taking employment
• For female members leaving service for getting
  married
• PF A/c settled after two months under the
  circumstances
• Resignation from the services
•  

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The Employees Provident Fund Act 1952

• Advances / Withdrawals
• Purchase of site for construction of House /
  purchase of flat  
• Additions / alterations / improvements to the
  house  
• Repayment of loan
• Hospitalisation for more than a month / major
  surgical operation / suffering from TB, Leprosy,
  Paralysis, Cancer, Heart ailment etc
• Marriage of self / son / daughter / sister /
  brother
• Education of son / daughter
• Physically handicapped member for purchasing an
  equipment to minimize the hardship due to handicap

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The Employees Provident Fund Act 1952

• Employer Role Responsibility

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The Employees Provident Fund Act 1952

• Monthly Returns
• Filing monthly PF returns with the EPFO within 15
  days of the close of each month
• Provide list of new employees joined in the
  establishment during the preceding month are
  qualified to become member in fund (Form-5)
• Provide list of employees leaving service during
  the preceding month (Form-10)
• Employer should file 'Nil' returns if there is no
  new employee or no employee leaving the service
  during the preceding month
• Provide the total no. of members last month, new
  members joined and existing members resigned in
  the preceding month total no. of present
  subscribers to be fund (Form-12A)

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The Employees Provident Fund Act 1952

• Annual Returns
• Employer shall send to the Commissioner within
  one month of the close of the year, a
  consolidated Annual Contribution Statement
  (Form-6A) and individual employee sheet
  (Form-3A) showing the contributions made by the
  employees and employer during the year
• Penalty
• 1237 interest is payable for the delayed period
  in remitting contributions/ administrative
  charges depending upon the delayed period
• Exemption
• Employer can seek exemption from the Scheme if
  similar / better benefits are provided other than
  the Scheme by forming a Voluntary PF Trust which
  will work under the rules regulations of EPFO

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The Employees Provident Fund Act 1952

• Employee Role Responsibility

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The Employees Provident Fund Act 1952

• Provide details of self nominees (Form-2) for
  PF Pension Scheme at the time of joining the
  establishment
• In case of already having PF A/c, apply for
  transfer of previous A/c to the present A/c
• If willing to increase contribution, inform the
  same to the employer to deduct the amount from
  the salary (Voluntary
  Provident Fund).
• Voluntary PF can be upto 100 of wages
• Understand that the employer is not liable to pay
  any contribution on voluntary PF
• Understand that Employees' Provident Fund
  Organization does not have any agent / middlemen

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The Employees Pension Scheme 1995

• Employees Pension Scheme 1995

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The Employees Pension Scheme 1995

• Introduction
• To give long term protection / financial security
  to employee upon retirement and his family in
  case of his pre-mature death, family pension
  scheme has come into force by diverting 8.33
  contribution made by employer towards PF scheme
• Application
• Scheme is compulsory for all the existing members
  who become members of the Employees Provident
  Fund Scheme
• Eligible
• Monthly pension to employees on retirement
• Widows on death of the member
• Children of the member below 25 years age
• Monthly pension to members upon permanent total
  disablement during service

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The Employees Deposit-Linked Insurance Scheme
1976 (EDLI)
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The Employees Deposit-Linked Insurance Scheme
1976 (EDLI)

• Application
• EDLI scheme is compulsory for all the existing
  members who become members of the PF Scheme
• Life insurance benefit (death coverage) of the
  employee is available under this scheme while in
  service
• Calculation
• EDLI is calculated on EDLI slab Rs. 6500/-
• 0.50 EDLI calculated on total EDLI slab (Rs.
  6500) wages and transferred to EDLI fund
• 0.01 EDLI Administration charges calculated on
  total EDLI wages
• EDLI / administration charges are payable by the
  employer

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The Employees Deposit-Linked Insurance Scheme
1976 (EDLI)

• Eligible
• Person who is eligible to receive PF dues of
  deceased member who died while in service is only
  eligible to receive EDLI fund
• Exemption
• Employer can seek exemption from the Scheme if
  similar / better benefits are provided other than
  the Scheme with the consent of majority of
  employees

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List of Forms

• List of Forms

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List of Forms

• Forms For Claiming Benefits Under PF Scheme

Form Purpose
13(revised) For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme
14 Application for financing a life insurance policy out of PF A/c
19 To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination
20 In the event of death of member, this form is to be used by a nominee / family member to claim the member's PF accumulation
31 For the use of PF members to avail advances / withdrawals as provided in the scheme
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List of Forms

• Forms For Claiming Benefits Under Pension Scheme

Form Purpose
10 C To be submitted by a member to withdraw his EPS fund
10 D To be submitted by the first claimant i.e.- member - widow / widower - Orphan- nominee
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List of Forms

• Forms For Claiming Benefits Under EDLI Scheme

Form Purpose
5 (I.F.) To be submitted by the person eligible to receive the PF A/c dues of the deceased member who died while in services
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• Summary

Form Purpose
2 Nomination Form
5 Return of Employees qualifying for membership to the Employees' Provident Fund for the first time during every month.  Within 15 Days of the following month.
10 Return of members leaving service during the month.
12A Consolidated Statement of dues and remittance By 25th of the following month to which the dues relate.
3A Member's annual Contribution card 
6A Consolidated annual contribution statement
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Month wise Statutory Deposits Returns

• January
• Before 15th P.F., P.F. Challan
• Before 25th P.F Form 5, 10 12A(P.F)
• Monthly statutory register daily/end of the month
• (Monthly statutory register should be
  maintained)
• February
• Same as January month
• March
• Before 15th P.F., P.F. Challan
• Before 25th P.F Form 5, 10 12A(P.F)
• P.F, P.F. Annual Returns form 6A 3A
• Monthly statutory register daily/end of the month
• (Monthly statutory register should be
  maintained)
• April to December
• Same as January month

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Thank You