Employees Provident Funds and Miscellaneous provisions,1952
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Transcript of Employees Provident Funds and Miscellaneous provisions,1952
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8/7/2019 Employees Provident Funds and Miscellaneous provisions,1952
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EMPLOYEES PROVIDENT FUNDS
AND MISCELLANEOUS
PROVISIONS,1952
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The act extends to the whole of India& applies to every factory &
establishment in which 20 or more
persons are employed.
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SCHEME OF THE ACT
The act applies to any establishment where thereare 20 or more employee even otherwise the actcan be applies on request of the employees with
the consent of the employers.
Every employee is covered under the PF schemefrom day 1 of his employment.
Employee means any person employed for wagesfor any kind of work but doesnt include anapprentice/a person drawing more than Rs.6500
pm
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A contribution of 12% is deducted from
employees wages & an equal share is
contributed by the employer. The aggregated
amount is deposited with the regional PF
commissioner.
In the industries making jute, bidis gum etc for
sick establishment the rate of contribution is
10%
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The amount thus accumulated is refunded to
employees with interest on his retirement,
certain advances are allowed to an employee
for specified purposes.
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CONTRIBUTION
The rate of contribution is 12% & in certain cases10% of wages .
Wages means basic wage +DA + retaining
allowances ,if any Employers contribution shall be an equal share &
each contribution is calculated to the nearestrupee.
It is the employers duty in the 1st instant to pay
employers contribution & employees contributionfrom the wages of any employers
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Under no circumstance the employers candeduct the employers contribution from the
wages of any employer.
Within 15 days after the expiry of every monththe employer shall pay the contribution through
SBI.If an employer makes a default in payment
the same shall be recover from him with
penalty & interest by attachment of his
property.
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ADVANCES FROM THE FUND
Advance For Illness
Advances For Marriage/Post Matriculation
Education Of Children
Abnormal Conditions
Advance To Physically Handicapped Members
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ADVANCE FOR ILLNESS-
A member is allowed non refundable advance
in case of hospitalization for 1 month or
major surgical operation or for TB, leprosy,
paralysis, cancer etc
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ADVANCES FOR MARRIAGE/POST
MATRICULATION EDUCATION OF
CHILDREN
For this type of advance it is necessary that
the member must have completed 7 years of
membership & max 3 such advances are
granted
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ABNORMAL CONDITIONS
If the property of the member has been
damaged by any calamity such as float, earning
quake, riots such advance is granted. The stat
Govt. must declare that such calamity hasaffected the general public.
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ADVANCE TO PHYSICALLY HANDICAPPED
MEMBERS
Aphysically handicapped member is allowed
such advance for purchasing an equipment to
minimize his hardship. Only one advance is
given in a period of 3 years.
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The scheme brought in to force from August
1976.
The employees who are the members of PF areautomatically covered in this scheme.
They dont have to make any contribution in the
scheme.
Only the employer have to pay the contribution
@ 0.5% of their wages
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The CG contribution @ 0.25%
The nominees of the employees will get in the
event of death of the member, an amount = average balance of previous 12
months
or Rs.25,000 whichever is more
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Employees Deposit Linked Insurance
Scheme (EDLI)( Sec6-C)
This scheme brought into force from August1976.
The employees who are the members of PF are
automatically covered in this scheme.
They dont have to make any contribution inthe scheme.
Only the employers have to pay the contribution@ 0.5% of their wages
The central govt. contributes @ 0.25%
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The nominees of the employees will get in the
event of death of the member,
an amount=average balance of previous 12months or Rs.25,000 whichever is more.
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MATTERS TO BE PROVIDED FOR IN THE
EDLI SCHEME
The employees or class of employees who shall becovered by the insurance scheme.
The form in which an employee shall furnishparticulars about himself and the members of hisfamily whenever required.
The nomination of a person to receive theinsurance amount due to the employee after hisdeath and the cancellation or variation of suchnomination.
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The scales of insurance benefits andconditions relating to the grant of such benefitsto the employees.
The registers and records to be maintained inrespect of employees; the form or design of anyidentity card ,token or disc for the purpose of
identifying any employee or his nominee ormembers of his family entitled to receive theinsurance amount.
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CENTRAL BOARD OF TRUSTEES
For the purpose of this act, the CG constitutes hisboard consisting of .
Chairman & vice chairman appointed by CG
The central PF commissioner
5 officers of CG.
Not more than 15 persons to represent state
Governments. 10 persons to represent employers.
10 persons to represent employees.
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FUNCTIONS OF THE BOARD
It shall administer the fund in such manner asspecified by the scheme
It shall maintain account of its income &expenditure in the specified manner.
It has to submit the accounts duly certified by
CA
G(Controller ofA
uditor general of India)
It has to submit the annual report to CG of its work& activities which has to led before each house of
parliament.
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EMPLOYEES PENSION SCHEME (Sec
6-A)
The Employees Pension Scheme was
introduced w.e.f. 16th November 1995
It is paid to the members on their retirement
under this scheme
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THE IMPORTANT PROVISIONS ARE:
1.Out of the employers contribution of12% an
amount..
8.33% is paid into the Pension fund.
The remaining3.67% is paid into the PF
accounts as before.
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2.The Central Government contribution an
amount is 1.16% of employees wages.
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3.Superannuation pension,retiring pension or
permanent total disablement pension to the
employees of any establishment or class of
establishment to which the EPF act applies;
4.Widow or widowers pension ,children
pension or orphan pension payable to the
beneficiaries of such employees.
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5. A member shall be entitled tosuperannuation pension if he has rendered
eligible service of 20 years or more & has
retired on attaining58 years.
6.A member shall be entitled to retirement
pension if he has rendered eligible service of
20 years or more & has retired before 58 years.
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7.Short Service Pension-If he has renderedeligible service of 10 years or more but less than
20 years.
8.Monthly Pension: This is based on a formula =
(Pensionable Salary x Pensionable Service) / 70.
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(i) Pensionable Salary = average monthly salaryover 12 months immediately preceding the
date of exit from the scheme.(retirement)
(ii) Pensionable Service = service in yearsrendered by the member for which
contributions have been received.
Normally this would be limited to Rs. 6,500.00p.m unless certain enhanced contributions are
made by the employer
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The SC declared that the scheme is beneficial
to employees in every way & also perfectly
constitutional.
Nomination with 1 difference from gratuity act.
Female member can exclude her husband &
his family from the nomination.
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