Employee Provident Fund Scheme THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 – Act no 19 An Act to provide for the institution of provident funds, pension fund and deposit-linked insurance fund for employees in factories and other establishments. Business HR - Satya_Swapna@yahoo.com
Topics Covered <ul><li>Applies to and Do not applies to </li></ul><ul><li>Contributions </li></ul><ul><li>Forms for employer </li></ul><ul><li>Forms for employee </li></ul><ul><li>Deposit linked Insurance Scheme </li></ul><ul><li>Pension Fund </li></ul><ul><li>Provident Fund - Benefits </li></ul>
Employee Provident Fund and Miscellaneous Provisions Act, 1952. a) Factory …. as in Schedule I … 20 or more persons are employed. Exception : Cinema Theatres …. 5 or more persons. Applies: b) <20 by Central Government notification ** Voluntary Coverage - By Employer and Majority Doesn’t apply: a) The co-operative societies employing less than 50 persons and working without the aid of power. b) Voluntary organizations engaged in leprosy eradication programs.
Employee Deposit Linked Insurance Scheme,1976 Employees Provident Fund Scheme, 1952 Employee Pension Scheme, 1995. Employee Employer Government 12% 0r higher 8.33%(max. of Rs 541 pm 3.67%(or less/Remaining) 1.16% 0.5% + Interest on the complete fund(8.5%) Contributions
Returns to be sent by an Employer 3 schemes <ul><li>Form-9: </li></ul><ul><li>Form-12A: </li></ul><ul><li>Form-5: </li></ul><ul><li>Form-10: </li></ul><ul><li>Form-3A </li></ul><ul><li>Form-6A </li></ul><ul><li>Form-2 </li></ul><ul><li>========== </li></ul><ul><li>Form-5A </li></ul><ul><li>Specimen signature </li></ul><ul><li>Challans </li></ul>The details of employees enrolled as members of 3 schemes - 15 days The details of the contributions recovered form the members & paid along with details of employers' contribution & administrative charges- 25th of following month. The details of the employees enrolled newly to the Provident Fund - 15 days The details of the employees leaving service during the month. The details of wages & contributions in respect of each member, to be prepared financial year wise - By 30 th April Yearly consolidated statement of contributions- To be forwarded yearly along with form-3A Nomination form- To be submitted along with form-5/9. Return of ownership of the establishment- whenever there is a change in the ownership - it has to be intimated with in 15 days of change. Of officer authorized to sign the returns/documents relating to PF. The triplicate copy of challans in token of having remitted the Provident Fund dues in the bank- to be submitted along with form-12A every month
Forms for Employee a) Form-19 : b) Form-20 : c) Form-10-D : d) Form-10-C : e) Form-5IF : f) Form-31 : g) Form-13 : To claim final settlement of Provident Fund by a member. To claim Provident Fund by nominee/legal heir on death of the member. To claim pension. (In duplicate : If within state, In triplicate : If outside state.) To claim withdrawal benefit/scheme certificate under Employees' Pension Scheme '95. To claim assurance benefit under Employees' Deposit Linked Insurance '76 by nominee/legal heir of a member. To claim temporary withdrawal/advance under Employees' PF scheme'52. To effect transfer of Provident Fund/Pension from one A/C to another. (Attested)
<ul><li>Insurance Benefit = Avg balance of last 12 months </li></ul><ul><li>If > Rs 35k , Cover = Rs 35k + 25% of excess amount (max of 60000) </li></ul><ul><li>The insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs.35,000, insurance cover would be equal to Rs.35,000 plus 25% of the amount in excess of Rs.35,000 subject to a maximum of Rs.60,000. </li></ul>Employee Deposit Linked Insurance Scheme ’76 Insurance benefit and Accident Benefit
Accident Benefit = Avg of last 12 months if Average balance is > Rs.50,000/- then Insurance Amount = Rs. 50,000/- + 40% (Excess), (max of Rs. 1,00,000/- ) Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium @ Rs.0.75 per thousand Sum Assured per annum. Double accident cover under all group Schemes taken together should not exceed Rs.4.5 lacs .
Employee Pension Scheme Monthly pension = (Pensionable salary*Pensiable Service)/70 Pensionable Salary = Avg monthly salary of last 12 months Pensionable Service = Service in years Minimum 10 years eligible service will entitle for member pension >20 yrs – Pension age – 2yrs Additional years are added. Eg: Monthly Pension = (30000*22)/70 = Rs. 9429
Employees' Provident Fund Scheme Benefits 69(1)(a) Retirement after attaining 55 years of age. 69(1)(b) Retirement on account of total and permanent incapacity due to bodily or mental infirmity. 69(1)(d) Termination of service on retrenchment. 69(1)(dd) Termination on V.R.S Note: For female members leaving service for the purpose of getting married; waiting period not applicable. 69(1)(c) Migration from India for permanent settlement abroad or taking employment abroad. 69(1)(e)(i) transfer of a non retrenched employee from a closed establishment to uncovered establishment. 69(1)(e)(ii) Transfer of an employee from a covered establishment to an un-covered establishment under the same employer. 69(2) Other cases viz. Resignation, Leaving service, etc. Note: For female members leaving service for the purpose of getting married; waiting period not applicable. 69(1)(e)(iii) Members discharged & retrenchment compensation paid under I.D. Act 1947. Settlement under para 69 - To Member Payment Mode: a) Money order b) by deposit in payees' bank a/c/ c) through employer d) by depositing the cheque in payees' name or part of amount in annuity scheme in any nationalised bank. e) Payment by money order is allowed where the amount is not more than Rs. 2000/-. Immediate settlement without waiting period of two months Settlement only after a waiting
Provident Fund Benefits <ul><li>WITHDRAWALS </li></ul><ul><li>The purchase of site for construction of house </li></ul><ul><li>The Construction of House </li></ul><ul><li>The purchase of dwelling flat </li></ul><ul><li>Additions, Alterations or improvements to the dwelling house </li></ul><ul><li>Advance from the fund for repayment of loan </li></ul><ul><li>Advance from the fund for illness viz. hospitalisation for more than a month </li></ul><ul><li>Advance from the fund for Marriage of self/son/daughter/ sister/brother etc. </li></ul><ul><li>Advance from the fund for education of Son/Daughter </li></ul><ul><li>Grant of advance in abnormal conditions, Natural calamities etc. </li></ul><ul><li>To Physically Handicapped member for purchase of an equipment equired to minimize the hardship on account of handicap. </li></ul>
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