2. OBJECTIVE
The Employees’ provident Funds and Miscellaneous
provisions Act, 1952 is enacted to provide a kind of social
security to the industrial workers. The Act mainly provides
retirement or old age benefits, such as Provident Fund,
Superannuation Pension, Invalidation Pension, Family
Pension and Deposit Linked Insurance.
The Act provides for payment of terminal benefits in
various contingencies such as retrenchment, closure,
retirement on reaching the age of superannuation, voluntary
retirement and retirement due to incapacity to work.
3. APPLICABILITY OF THE ACT
To every factory employing 20 or more persons.
Any establishment to which the Act applies shall continue to
be governed by the Act even if the number of persons
employed therein at any time falls below.
4. The Employees’ Provident Funds
Scheme, 1952
Applicability : Every employee employed in or in
connection with the work of a factory or other establishment
covered by the schemes other than an excluded employee is
entitled and required to become a member of the fund from
the date of joining the factory or establishment.
5. Excluded Employee :
An employee who, having been a
member of the fund, has withdrawn the full
amount of his contribution in the fund (a)
on retirement from service after attaining
the age of 55 years or (b) before migration
from India for permanent settlement
abroad; or for taking employment abroad
An employee whose pay at the time he is
otherwise entitled to become a member of
the Fund, exceeds Rs. 6,500/- per month.
A person who, is an apprentice, or who is
declared to be an apprentice by the
authority specified in this behalf by the
appropriate Government.
6. Contribution under EPF
Scheme,1952
1. Employees : 12% on Basic + DA
2. Employer :
(a) 3.67% on Basic + DA
(b) Administrative Charges : 1.10% on
Basic +DA
7. The Employees’ Pension
Scheme, 1995
Purpose: The purpose of the scheme is to provide for (1)
superannuation pension, retiring pension or permanent total
disablement pension to employees covered by the
Employees’ Provident Funds and Miscellaneous Provisions Act,
and (2) widow or widower’s pension, children pension or
orphan pension payable to the beneficiaries of such
employees.
8. Contribution
1. Employee: Not required
2. Employer :
(a) 8.33% on Basic + DA
It is to be noted that where the pay of the member exceeds Rs.
6,500/- per month, the contribution payable by the employer
will be limited to the amt. payable on his pay of Rs. 6,500/-
only.
9. Formalities under EPF Act
Employees have been appointed on salary( Basic+ DA or Consolidated )
of Rs. 6500 or less or covered under the provision of the EPF Act, right
from the day of commencement of their work. Employee can contribute
more behind Rs.6500 similarly employer also at his discretion can do so
but not mandatory
EPF Act is applicable to such of the establishments who are engaging 20
or more persons or had engaged 20 or more persons at any time during
calendar year.
10. Formalities under EPF Act
Casual workers/ Temporary workers/
Probationary, even if they had performed
work even for a day, are technically taken
into account for the purpose of assessments
of strength of 20 for the purpose of
applicability of the act and are also covered
under the act. Apprentices/ Trainees are
excluded from the definition of employees.
Percentage of contribution to be deducted
from employees contribution is 12% of his
salary, namely Basic + DA , but does not
include HRA, CCA, Incentive, Bonus,
Washing allowance etc.
11. Formalities under EPF Act
Employer contribution of 12% of the salary of employees is to be paid as
under
• 3.67% to be remitted in Account No.1 ( Employees Account)
• 8.33% to be remitted in Account No.10 towards pension fund
In addition to 12% of the employer has to remit 1.61% paid as under
• 1.10% Administrative charges in Account No.2
• 0.5% EDLI in Account No.21
• 0.01% Inspection charges in Account No.22
12. Formalities under EPF Act
To facilitate the employer to make the above contribution a
consolidated challan ( in quadruplicate) is made in which all
the above contributions could be remitted one challan itself.
13. The Employees’ Deposit-Linked
Insurance Scheme, 1976
Purpose : To provide life insurance benefits to the employees
of the establishments covered by the EPF & MP Act, 1952
14. Contribution under EDLI
Scheme,1976
1. Employees : Not required
2. Employer :
(a) 0.5% on Basic + DA
(b) Administrative Charges : 0.01% on
Basic +DA
Where the monthly pay of an employee is more than Rs. 6,500 the
contribution payable in respect of him by the employer is limited to the
amounts payable on a monthly pay of Rs. 6,500 only.
15. Benefits of EDLI scheme
The benefit provided under the scheme in the nature
of life insurance as follows:
1. On the death of an employment while in service
a lump sum insurance amount is payable to his
nominee or family members.
2. The insurance amount is equal to the average
balance in the account of the deceased employee
in the Provident Fund during a period of 12
months immediately preceding his death. In
case the average balance exceeds Rs.35,000/-
the insurance amount payable is Rs. 35,000/-
plus 25% of the amount in excess of Rs.
35,000/- subject to a ceiling of Rs. 60,000/-.
16. Compliances under EPF & MP Act, 1952
In SBIBefore 15th of
every month
ChallanMonthly contribution of
Employer & Employee in Challan
for previous month
2.
RPFC officeBefore 25th of
every month
12AMonthly Return4
RPFC officeBefore 15th of
every month
10Return of Employees Leaving3
RPFC officeBefore 15th of
every month
5Return of Employees Qualifying2.
RPFC officeAt the time of
joining
2Declaration Form from new
Joinees
1.
Remark /
Submitted to
Compliance
Date
Form
No.
Type of ComplianceSr.
No
.
17. Compliances under EPF & MP Act, 1952
RPFC officeWhen new Recruit13Transfer of PF A/c6.
After 5 Years of
membership
31Advances for various Purpose8.
RPFC officeAt the time of
Leaving the service
19, 10C &
10D
Final settlement7.
RPFC officeBefore 30th of April3A & 6AAnnual return &
reconciliation statement
5.
Remark /
Submitted to
Compliance DateForm No.Type of ComplianceSr.
No.
