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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