PF ACT Final

8/8/2019 PF ACT Final

http://slidepdf.com/reader/full/pf-act-final 1/17

Employees¶

Provident FundAnd

Miscellaneous

Provisions Act,

1952

Sneha Gedam

(09- 716)



Introduction

Provident Fund - better future to employees

Salary consists of two parts i.e. earnings & deductions

Provident Fund is one of the statutory deduction



Applicability

Extends to whole of India except Jammu

and Kashmir

Applies to all factories (ScheduleI

)andestablishments having 20 or more

employees.

Continues to be applicable even if number

falls below 20.

Any establishment which Central govt. may

specify.



Definitions

Basic wages

Contribution

Employer Employee

Factory

Industry



Eligibility

All Employees

Direct and through Contractor

Permanent and Probationary

Exceptions

Apprentices Excluded employee



Contributions

Employer¶s contribution - 12% (Basic, DAand Retaining allowance)

Employee¶s contribution ± Same as

Employer¶s Administrative charges ± 1.10%

Inspection charges ± 0.18%

No upper limit for contribution Duty of contractors

Time frame for deposits



Benefits

Advances/withdrawals

Interest ± current rate 9.5%

Nomination Equal payment by employer

Transferrable

Social security



Employee Pension Scheme

To give financial security

Compulsory for all existing members of

EPF Scheme

Eligibility

Employee

Widow

Children (upto 25 years)

Upon permanent total disablement



Contributions

8.33%(Basic, DA and retaining allowance)

by the employer

1.16%(of pay of the member) by the Central

govt.

Ceiling of Rs 541 pm (wef 1st June 2001)



Deposit linked Insurance Scheme

Employer ± 0.5% of salary

Administrative charges ± 0.01

Inspection charges ± 0.005% Employee- No contribution



PENALTIES



Period Of Default Rate of Damages (% of arrears p.a.)

Less than 2 months 17%

2 months & above but less than 4months

22%

4 months & above but less than 6

months

27%

6 months & above 37%



Violations Penalty

For avoiding any payment

knowingly make any false

statement or representation

Shall be punishable with

imprisonment upto 1 year or fine

of Rs. 5,000.00 or both.

An employer who contravenes

sec. 6 (re. contributions) or sec

17(3)(a) for payment of inspection

charges or para 38 re. payment of Administration Charges

Shall be punishable withimprisonment upto 3 years but:

(a) will not be less than 1 year

and fine of Rs. 10,000.00 if it

relates to payment of employees

contribution, which has been

deducted by the employer.(b) will not be less than 6 months

and fine of Rs. 5,000.00, in any

other case.

The court can decide a lesser

term for imprisonment but for

reasons recorded.



Violations Penalty

An employer who contravenes sec

6C Re. EDLI or sec 17(3A)(a) re.

inspection charges


imprisonment upto 1 years but

will not be less than 6 months

and fine of upto Rs. 5,000.00.

Failure to comply with any

provision of the Act or Schemes


imprisonment upto 1 years or

with fine of upto Rs. 4,000.00 or

both.

Contravenes any provision or

condition for which exemption u/s

17 was given and no other penalty

is prescribed

Be punishable with imprisonment

upto 6 months but not less than 1

month and also fine upto Rs.

5,000.00.



FAQ¶s

I

s it beneficial for employees who draw salary aboveRs 6501/- to become member of Provident Fund ?

What is the contribution percentage to the Providentfund and Pension Scheme ?

When is an employee eligible to enjoy pensionscheme ?

What happens in case there is a salary revision and araise in the basic salary of the employee and arrears

need to be paid, Do we need to deduct PF from thearrears as well ?

Is it possible for an employee to contribute at a higher rate of interest than 12 % ?



FAQ¶s

What is the provision of the scheme in the matter

of nomination of a member ?

Do we get any interest on the amount which is

deposited in the Provident Fund account?

What is the purpose of the Employee's Pension

Scheme ?



Thank You

PF ACT Final

Documents

Transcript of PF ACT Final