EMPLOYEE PROVIDENT
FUND & MISCELLANEOUS
ACT 1952
Abhishek Nagre
Abhisheknagre777@gmail.com
EPF ACT 1952
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 came into
effect on 4 March 1952
3 sche...
he total assets under management at more than

5

lakh crore (US$91 billion) as of 1 May 201

EMPLOYEES' PROVIDENT FUND
OR...
EPF Organization
For every political state they have
Additional Central Provident Fund
Commissioner

Additional Central Pr...
WHAT IS EPF
The EPF (Employees' Provident Fund) is the most popular investment for salaried
individuals
and is maintained ...
CONTRIBUTION RATES

SECTION 6

The contribution is made by both Employer and the employee
Contribution as described in law...
Employees contribution

The contribution payable by the employee under the Scheme, shall be equal to the contribution
paya...
Contribution in excess
In case an employee wants to contribute more than 12 % he is allowed to do so but
the employer is n...
CONTRIBUTION COMPULSORY ???
Contribution is compulsory wherein the basic salary is 6500 rupees and
if the basic salary exc...
INTEREST PAID
• The Commissioner shall credit to the account of each member interest at such rate as may be
determined by ...
PENALTY ON NON PAYMENT 32 A
Where an employer makes default in the payment of any contribution to the fund, or in the tran...
COVERAGE
Every establishment which is a factory engaged in any industry mentioned herein, namely,
•
•
•
•
•
•

cement
ciga...
EXEMPTIONS SECTION 16
This Act shall not apply
(a) to any establishment registered under the Co- operative Societies Act, ...
Right from day one
The act comes in to enactment from the very day of the company's establishment or
commencement of busin...
MEMBERSHIP
• Right from the day of establishment

• Membership is offered to employees working part time / full time and
t...
VOLUNTARY COVERAGE
Section 1 [4]
If any company / establishment which does not come under coverage wants to
enroll for the...
WHAT DOES ACT COMPLY TO
• Coverage of the possible coverable establishments according to the rules laid down
• Extending m...
REGISTRATION PROCESS
• Upon registration the company / establishment is issued with registration number
or code number
• I...
DUTIES OF EMPLOYER
• Enroll all employees including contractual or contracted employees and
hourly rated employees
• Remit...
BENEFITS OFFERED UNDER SCHEME
Payment of accumulation plus interest on the eve of retirement resignation or death
Partial ...
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Employee provident fund & miscellaneous act 1952 abhishek nagre

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Employee provident fund & miscellaneous act 1952 abhishek nagre

  1. 1. EMPLOYEE PROVIDENT FUND & MISCELLANEOUS ACT 1952 Abhishek Nagre Abhisheknagre777@gmail.com
  2. 2. EPF ACT 1952 The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4 March 1952 3 schemes come under this • Employees' Provident Fund Scheme, 1952 • Employees' Deposit Linked Insurance Scheme, 1976 • Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971) The act came into immideate effect from 14 - 3 - 1952
  3. 3. he total assets under management at more than 5 lakh crore (US$91 billion) as of 1 May 201 EMPLOYEES' PROVIDENT FUND ORGANIZATION OF INDIA • Statutory body of the Government of India under the Ministry of Labor and Employment • The headquarters of the organization is in New Delhi • It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme. • It is one of the largest social security organizations in the India in terms of the number of covered beneficiaries and the volume of financial transactions undertaken • The total assets under management at more than INR 5 lakh crore (US$91 billion) as of 1 May 2013 • The organization is administered by a Central Board of Trustees, composed of representatives of the Government of India, provincial governments, employers and employees • The board is chaired by the Union Labor Minister of India.
  4. 4. EPF Organization For every political state they have Additional Central Provident Fund Commissioner Additional Central Provident Fund Commissioner The states have either one or more than one Regional Offices headed by Regional P.F. Commissioners (Grade I) Regional Offices headed by Regional P.F. Commissioners (Grade I) which are further sub- divided into Sub-Regions Regional P.F. Commissioners (Grade II) Regional P.F. Commissioners (Grade II)
  5. 5. WHAT IS EPF The EPF (Employees' Provident Fund) is the most popular investment for salaried individuals and is maintained solely by the Employees' Provident Fund Organization of India (EPFO). RULE : A part of the employees salary is benefitted to this scheme which can be withdrawn by the employee in later stages for his purpose – Security , Help during dire circumstances “As a rule, any company having more than 20 employees has to register with the EPFO”
  6. 6. CONTRIBUTION RATES SECTION 6 The contribution is made by both Employer and the employee Contribution as described in law The contributions payable by the employer under the Scheme shall be at the rate of [ten per cent] of the [basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance Rate of 12 % Rate of contribution shall be [twelve] per cent in respect of any establishment or class of establishments which the Central Government may specify in the Official Gazette from time to time
  7. 7. Employees contribution The contribution payable by the employee under the Scheme, shall be equal to the contribution payable by the employer in respect of such employee Rate of contribution is 10 % usually in the following conditions • Employees are less than 20 • The units that are declared sick • Units of Beedi , Jute , Brick , coir
  8. 8. Contribution in excess In case an employee wants to contribute more than 12 % he is allowed to do so but the employer is not entitled to contribute the extra percentage The contributions shall be calculated on the basis of • Basic wages, dearness allowance (including the cash value of any food concession) • Retaining allowance actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis
  9. 9. CONTRIBUTION COMPULSORY ??? Contribution is compulsory wherein the basic salary is 6500 rupees and if the basic salary exceeds 6500 rupees then the membership is taken upon the joint request of the employer and the employee
  10. 10. INTEREST PAID • The Commissioner shall credit to the account of each member interest at such rate as may be determined by the Central Government in consultation with the Central Board. • At current the interest rate is 8.5 % • Interest shall be credited to the member’s account on monthly running balances basis
  11. 11. PENALTY ON NON PAYMENT 32 A Where an employer makes default in the payment of any contribution to the fund, or in the transfer of accumulations required to be transferred by him Imprisonment depending upon non payment up to 3 years with 10 thousand fine Period of default Rate of damages (% of arrears per annum) Less than two months 17 Two months and above but less than four months 22 Four months and above but less than six months 27 Six months and above 37
  12. 12. COVERAGE Every establishment which is a factory engaged in any industry mentioned herein, namely, • • • • • • cement cigarettes Electrical mechanical or general engineering products iron and steel paper and textiles (made wholly or in part of cotton or wool or jute or silk, whether natural or artificial) be deemed to have come into force, with effect from 2nd day of September, 1952 and which employees 20 or more persons
  13. 13. EXEMPTIONS SECTION 16 This Act shall not apply (a) to any establishment registered under the Co- operative Societies Act, 1912 (2 of 1912 ), (b) to any other establishment belonging to or under the control of the Central Government or a State Government (c) to any other establishment newly set up, until the expiry of a period of three years from the date on which such establishment is, or has been, set up
  14. 14. Right from day one The act comes in to enactment from the very day of the company's establishment or commencement of business except some class establishments which are mentioned under section 16 of the act Once applied …. The Act once applied will continue to apply even after the employees number comes down to below 20 Applicable to cinema theaters that have employed 5 or more than 5 employees
  15. 15. MEMBERSHIP • Right from the day of establishment • Membership is offered to employees working part time / full time and temporary /contractual employees • Compulsory for people having basic pay of Rs 6500 • If basic pay exceeds Rs 6500 then it is granted by the request from the employer and the employee
  16. 16. VOLUNTARY COVERAGE Section 1 [4] If any company / establishment which does not come under coverage wants to enroll for the membership it can do so by the consent of the employer and the consent obtained by the majority of the employees
  17. 17. WHAT DOES ACT COMPLY TO • Coverage of the possible coverable establishments according to the rules laid down • Extending membership to all the employees who work in the establishments that get registered • Ensuring proper implementation of act and the schemes thereof
  18. 18. REGISTRATION PROCESS • Upon registration the company / establishment is issued with registration number or code number • Issued by the regional provident fund commissioner of the particular region the establishment belongs to • Code number is usually issued within 3 days on submission of the requisite documents • The members - as in the employees are assigned a separate PF account number for life long reference
  19. 19. DUTIES OF EMPLOYER • Enroll all employees including contractual or contracted employees and hourly rated employees • Remit contributions and administrative charges before the 15th of the following month • Filing of the initial returns form 9 • Monthly returns filing with the help of form 12 A • Make all records available for the inspection of the authority • Ensure continuous payment to prevent penalties
  20. 20. BENEFITS OFFERED UNDER SCHEME Payment of accumulation plus interest on the eve of retirement resignation or death Partial withdraws are permitted for special purposes • • • • • • • Financing life insurance policies Acquiring house or site Marriages of self or dependents Education of children Treatment of illness Purchase of any equipment by physically handicapped persons Financial assistance on lockout or discharge of duties
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