A CASE STUDY ON EPF INCENTIVE REFUND SCHEME - CONDUCTED BY NABARUN CHAKRABORTY (HR Professional)

Developed and Conducted by: Nabarun Chakraborty
HR Executive| Database Administrator| Expertise in EPF & EPS matters
PROJECT
TOPIC:
A Study of Employees
Provident Fund Refund
Scheme of G.I. Security Pvt.
Ltd.

Date : 23.12.2016
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TO WHOMSOEVER IT MAYCONCERN
This is to certify that our employee Mr. Nabarun Chakraborty has successfully completed 2 months project
(from 20th October – 19th December, 2016) on “A Study of Employees Provident Fund (EPF) refund
Scheme of G.I. Security Pvt. Ltd.” in our company”.
In the span of this bona fide project done by Mr. Nabarun Chakraborty, he was found very inquisitive,
hardworking and sincere.
We wish him best of luck.

TABLE OFCONTENTS
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1. INTRODUCTION
a. Concept of Provident Fund 6
b. PF deductions and interest 6
c. Benefits to Members under EPF Schemes 8
d. What isUAN 9
e. Benefits of UAN 10
f. Benefits of seeding bank account and
AADHAR against UAN
10
g. Benefits of UAN activation 11
h. PF AdminCharges 11
i. Process to get refund of Admin Charges 11
j. Provident Fund Acts 12
k. Objectives of thestudy 15
2. RESEARCH METHODOLOGY
a. Sampling Methodology 15
b. ResearchDesign 15
c. Data Collection 15
3. COMPANY PROFILE 16
4. DATA ANALYSIS AND INTERPRETATION 19
5. ONE SAMPLE Z TEST FOR PROPORTIONS 23
6. FINDINGS AND RECOMMENDATIONS 26
7. LIMITATIONS 26
8. BIBLIOGRAPHY 26
9. ANNEXURE 27
A. QUESTIONNAIRE
B. EMPLOYEE OPINION SHEEET
C. EMPLOYEE WAGE SHEEET
D. NOTIFICATION FOR INCENTIVE
RETURN SCHEME

1. Introduction:
a. Concept of Provident Fund:
A provident fund is a form of social safety net into which workers must contribute a portion of their
salaries and employers must contribute on behalf of their workers. The money in the fund is then
paid out to retirees or in some cases to the disabled who cannot work.
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b. PF deductions and interest:
Deductions: 12 % of the basic salary (up to 15,000/-) of an employee is deducted as the employee’s
contribution towards PF; the same amount i.e. 12 % of the basic salary is contributed by the
employers, out of which 3.67% is contributed to the EPF account, and rest 8.33% is contributed to the
EPS (pension) account. So the total PF contribution i.e. (12% + 3.67%) = 15.67 % of the employee’s
basic salary yields the PF contribution per month which is subject to interest at the end of a financial
year.
The rest 8.33% of the basic salary that is contributed by the employers towards pension account
which is not subject to any interest.
Contribution made by Employer:
Contribution made by the employer also is 12% of the basic salary of the employee. However, this
12% is further subdivided into the following four components –
 Employee’s Provident Fund (EPF) – 3.67%
 Employee’s Pension Scheme (EPS) – 8.33%
 Employee’s Deposit Link Insurance Scheme (EDLIS) – 0.50%
 EPF Admin Charges – 1.10%
 EDLIS Admin Charges – 0.01%
However an EPF subscriber can contribute more than 12 % (in fact, your whole salary) in Voluntary
Provident Fund (VPF). It is a type of investment option wherein a person (salaried employee) can
contribute more than the normal compulsory deduction of 12% of your basic salary. However
employers are not under obligation to contribute.
The maximum amount of contribution to VPF is 100% of Basic Salary and Dearness Allowance.
So it becomes a better solution for securing you financial future. In order to increase your
contribution towards VPF, employee has to write to their employer asking for additional amount of
deduction from your salary. Normally, employee can opt for this during any point in the financial
year.
VPF form need to be filled, signed and submitted to your finance/accounts/Payroll department of
your company. Form requires you to mention details of amount to be contributed from your Basic
and DA.

DECLARATION ON
EMPLOYEE VOLUNTARY PROVIDENT FUND CONTRIBUTION
Employee ID / No. :
Employee Name :
With Effect from : (month) (year)
:Contribution Percentage
(Should be between 5% & 88%)
This is to declare that, I am interested to avail the VPF benefit. I am also aware
that once opted for VPF and deduction starts under VPF, the same has to be
continued at least till the end of the PF financial year (or) resignation of the
Employee.
Signature of Employee:
Date:
Note: Interested Employees can send this Declaration Form duly filled-in to their
respective SBU/Corporate HR
HR – VPF01
Interest: The interest rate towards EPF account was 8.75% for the FY 2015-16 which has been
changed to 8.65 % for the FY2016-17.
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Calculation of interest on EPF balance:
Let us take an example of Amit who has just joined a new organization in the month of June, at a
monthly salary of Rs.10,000 (Basic + DA). Let us depict with the help of a table, his monthly
deductions and the applicable rate of interest.
For the first month his total contribution including both employees (12% of basic 10,000/-) and
employers share is (3.67% of basic 10,000/-) is Rs. 1567/-, in which he will not get any interest for
the first month, as interest starts from the second month, here it is July. From the next month, that is
from July (in this case) the interest will be calculated on the total PF contribution that has been
carried forward.

Month
Employee
Contribution
(12%)
Employer
Contribution
(3.67%)
Monthly
balance at the
end of month
Interest applicable
June 1200 367 1567 Nil. JustJoined.
July 1200 367 1567+1567 =
3134
1567*8.75%/12 =
Rs.11
August 1200 367 3134+1567 =
4701
3134*8.75%/12 =
Rs.22
September 1200 367 4701+1567 =
6268
4701*8.75%/12 =
Rs.34.27
October 1200 367 6268+1567 =
7835
6268*8.75%/12 =
Rs.45.70
November 1200 367 7835+1567 =
9402
7835*8.75%/12
=Rs.57.13
December 1200 367 9402+1567 =
10969
9402*8.75%/12 =
Rs.68.55
January 1200 367 10969+1567 =
12536
10969*8.75%/12 =
Rs.79.98
February 1200 367 12536+1567 =
14103
12536*8.75%/12 =
Rs.91.40
Total EPF
Balance at the
end of the year
10,800 3303
14103+1567 =
15670 410.03
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So, in the example illustrated above, the total interest that Amit received for his EPF contributions
from June to February comes out to be Rs.410.03.
c. Benefits to Members under EPF Schemes:
I. Provident Fund Benefits
1.Employer also contributes to Members PF @ 12% ( 10% in case of sick industrial co., any
establishment having accumulated loss equal to its entire paid up capital and any
establishment in Jute Industry, Beedi Industry, Brick Industry, Coir Industry and Gaur Gum
Factories. )
2.EPFO guarantees the Employer contribution and credits interest at such rates as determined
by the Central Government.
3.Member can withdraw from this accumulation to cater to financial exigencies in life - No
need to refund unless misused.

4. On resignation, the member can settle the account. i.e., the member gets his PF
contribution, Employer Contribution and Interest.
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II. Withdrawal Benefit
1. If not eligible for pension, member may withdraw the amount accumulated in his pension
account
2. The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not
based on actual amount available in Pension Fund Account)
III. No amount is taken from Member to give Pension to the Member. Employer and Govt.
contributes to Pension fund @8.33% and @1.16% respectively.
IV. EPFO guarantees pension to members, even if the Employer has not contributed to Pension
Fund.
V. Death Benefits
1. Provident Fund Amount to Family (or to Nominee)
2. Pension to Family (or to Parent / Nominee)
3. Capital Return of Pension
4. Insurance (EDLI) amount to Family (or to Nominee)
 No amount is taken from Member for this facility. Employer contributes for this.
d. What is UAN:
UAN is a 12 digit single account number which will be linked to your provident fund money. A PF
subscriber having UAN, don’t need to worry for different EPF accounts and then transfer them, when
he joins a new job. Now each employer will just give you a member id, and all those member id will
be linked with the same UAN. This is the new system and will be applicable now for your current
and future employment.
Things have changed now quite a bit after UAN has been introduced and most of the pain points have
been addressed.
3 Steps of obtaining and activating your UAN :
Below there are steps to be followed if you want to get your UAN and activate it.
1.Get the UAN from your Employer: The first step is to ask your employer for the UAN, which the
employer can get by logging in to the employer’s portal of EPFO.
2.Activate the UAN: UAN can be activated by the employer from the employer’s portal. It’s a process
of tagging the mobile number, PF number against the UAN number. After having tagged these
information, the PF subscriber gets a confirmation SMS to his mobile number containing the UAN
number and password, using which the subscriber can login to the UAN portal for employees and can
view the contribution passbook as also can see whether the bank account, AADHAR etc are seeded to

the EPF account. It is to be noted that multiple UAN numbers cannot be tagged against one mobile
number.
3.Update your KYC details: Employer can upload the KYC details in bulk text file through
employer’s portal, which can be updated from time to time as there is a change in KYC details.
e. Benefits of UAN:
i. Communication directly between employee and EPFO
ii. UAN will remain same throughout the career
iii. SMS notifications when your provident Fund is deposited
iv. Update your KYC at one place
v. Transfer of your Provident fund money automatically
vi. Extremely friendly process for EPF withdrawal or Applying for Loan
Benefits of seeding bank account and AADHAR against UAN:
Presently the EPF subscribers faces a lot of trouble while withdrawing the PF accumulations. The
subscriber may also not aware of whether the employer is filing his PF return which is getting
deducted from his salary.
 He / She has to wait for employer’s attestation before the claim is being submitted to the EPFO.
 Lot of formalities needs to be adhered while filling up the PF claim forms.
 Lot of documentation work needs to be done while processing the claim.
These resulting in delay in submission of PF claim forms.
 There is no other tool to identify whether the PF amount is timely submitted to the EPF account
by the employer.
EPFO has came out with an alternative which will simplify the PF withdrawal process for both
employees and employers, as also can give the employee a tool to trace his PF account like his bank
account.
A. Employers have to activate the UAN
Advantage: Employee will get his UAN ID and password to his mobile number, using which
they can view their PF passbook, where they can monitor whether the employer has fairly
contributed to his PF account. Also the employee can get monthly SMS of “how much amount is
contributed to the PF a/c” to their mobile number, once the UAN gets activated.
B. Employers have to seed the bank account number to UAN number
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Advantage: If the bank account is seeded against UAN and digitally approved by the employer
then while withdrawing PF – the employee does not need the employer’s attestation or even they
do not have to submit the claim to the employer.
C. Employers have to seed the AADHAR number to UAN number
Advantage: To determine that whether the claimant who is applying for PF withdrawal is a
genuine person or the correct person who wants to withdraw his PF, his AADHAR number
needs to be seeded against the UAN by the employer. Doing the same, the employee’s
biometric and demographic information gets recorded against the UAN account, thus help
in preventing transfer of PF amount to wrong person / account.
f.Benefits of seeding bank account and AADHAR against UAN : Benefits have been discussed in section
B and C.
g. Benefits of UAN activation: Benefits have been discussed in section A.
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h. PF Admin Charges: Apart from providing 12% towards EPF and EPS account, the employers
also have to pay an amount that is 0.85% of PF wages.
i. Process to Get Refund of Admin Charges: To promote the KYC seeding and UAN activation process,
EPF o has decided to refund a certain percentage of admin changes to employers. [Refer to Annexure :
D]
Incentive Refund Scheme A:
To claim 10% refund of administrative charges paid during the quarters, the eligible establishment has to
achieve the following criteria relating to UAN in respect of its contributing members in each of the month
falling in the quarter:-
(i) providing member’s details as required under Form No. 11 (New) (80% or above);
(ii) seeding of all the three i.e. AADHAR (at least 80% of (i) above) and Bank A/c {100 % of (i) above}
(iii) UAN activation {100% of (i) above}.
Incentive Refund Scheme B:
To claim 5% refund of administrative charges paid during the quarter, the eligible establishment has to
achieve the following criteria relating to UAN in respect of its contributing members in each of the month
falling in the quarter:
(a) Providing member’s details as required in Form No. 11 (New) {60 % or above};
(b) Seeding of AADHAR {70 % of (a) above} and Bank A/c {80 % of (a) above};
(c) UAN activation {60 % of (a) above}.

The incentive by way of refund shall be payable at the end of every quarter starting from quarter ending
March, 2016, as per procedure prescribed by the Central Provident Fund Commissioner and only such
establishments shall be considered eligible for the scheme of refund which have in each month of the quarter
achieved the criteria for qualification either in Incentive Refund Scheme ‘A’ or Incentive Refund Scheme
‘B’.
The Incentive Refund Scheme shall be in operation for one year, i.e. 1 Jan 2016 ~ 31 Dec 2016 (for the
quarters beginning January, 2016, April, 2016, July, 2016 and October, 2016).
j. Provident Fund Acts:
THE EMPLOYEES’PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
(Act No. 19 of 1952)
4th March, 1952
An Act to provide for the institution of provident funds, pension fund and deposit-linked insurance fund
for employees in factories and other establishments.
This act is an important fragment of Labor Welfare legislation enacted by the Parliament to provide social
security benefits to workers. At present, the Act and Schemes framed provide 3 types if benefits:
 Contributory Providentfund.
 Pension benefits to employees/family members.
 Insurance cover to the members of Provident Fund.
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Ways to be accustomed for Employee Provident Fund Act
The following are the people applicable according to the Employee provident fund act
1.Applicability: All establishments employing 20 or more persons (5(or) more for Cinema Theaters) are
brought under preview of the Employee provident fund act from the very first date of setup are subjected to
fulfillment of other conditions. The provisions of the Act are applicable on its own force independently. If
the establishments don’t have the prescribed number of employees and are willing to obtain the benefits of
this act, then they can register voluntarily with regional Provident Fund office.
2.Definition of wages: In the Employee and provident fund act, wages include the sum of basic and
dearness allowances, cash value of food concession and retaining allowances, if any
3. Eligibility:
 An employee at the time of joining the employment and getting salary up to Rs 6,500/-
 He/ she is eligible for membership of fund from very first date of joining a covered establishment.
4. Pension Fund : This is a fund that provides retirement. To avail pension benefit
To avail pension benefit, the member
 Should have completed 10 years of continuous service (or) attained age of 50 years or more.
 Doesn’t receive any EPF pension.
 Will receive pension amount on a monthly basis after attaining the age of 58.
5. Administrative Charges: The administrative charges in the Employee provident fund act include
 Employer has to pay administrative charges at 1.10% of emoluments towards the provident fund fun
charges and 0.01% towards ELDI Scheme
 Employee need not contribute anything towards these charges.
6.Annual Account Statement: After end of each period of contribution, annual statements of accounts
will be sent by PF department to each member last employed. The statement of accounts in fund will
show
 Opening balance of contribution with interest of both employer and employee
 Total contributions and interest earned during the year by both employee and employer.
Withdrawal of Employee Provident and Pension Fund
 A member is eligible to apply for withdrawing his provident and pension fund only after 2 months
from date of resignation, provided that he/she is not employed during the said 2 months.
 The member should submit Form 19 & 10C to withdraw his provident fund dues on leaving the
service/retirement (get it signed by previous employer and submit it to provident fund office).
 Withdrawals are exempted from tax if the employee has rendered continuous service for more than 5
years.
Advances of PF account: Members are eligible to withdraw monies as advances from their PF accounts
for purposes like marriage, education, medical treatment etc. This is tax and interest free.
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Conclusion
Thus the employment provident fund act provides:
 Grant of impunity from operation of the schemes framed under the Act to an establishment or a class
of employees and to an individual, on given conditions.
 Penalties to employers/trustees of exempted Provident Fund who contravenes the provision of the Act
and the Scheme.
 Appointment of inspector to secure compliance under the Act and the Schemes framed there under.
 Mode of recovery of money which is right from the employers.
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k. Objectives of the Study:
The Primary Objective was to study whether G.I. Security Pvt Ltd is eligible to get a refund of 10% of the
administrative charges towards PF from EPFO as per the notification published by EPFO on Incentive
Return Scheme attached in Annexure – D.
The Secondary Objectives of this study were to identify:
 Whether 80% of the employee’s AADHAR is seeded against their UAN number
 Whether 80% of the employee’s bank a/c is seeded against their UAN number
 Whether G.I. Security has completed the UAN activation of its 80% contributory members
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2. RESEARCH METHODOLOGY:
a. SAMPLING METHODOLOGY:
Sample Size — 70 respondents
Sample Unit- Currently working employees across various states have been taken as sample unit.
Sampling Technique - Random Sampling technique
b. RESEARCH DESIGN:
Employees chosen at random are called up over phone and gathered information as per the
questionnaire
The research design is probability research design and is descriptive research.
c. DATACOLLECTION:
Primary data has been used by me in the form of Questionnaire & Observation, which are the two
basic methods of collecting primary data, which suffices all research objectives.
Secondary data sources like data from EPFO dashboard of the company, company wage sheets, and
various internet sites have been used.

3. COMPANY PROFILE AND HIERARCHICAL STRUCTURE:
Company Profile and History:
G.I. SECURITY PVT LTD. is a comprehensive and multi-service facility management company. It help its
clients increase profits and reduce risks by outsourcing their non – core business and focusing on their core
business!
While its core strength is its ability to provide end to end facility management solutions for its clients real
estate, they also provide its soft services as individual service offerings. Their clients can avail of manned
guarding, security training and HR services as independent services.
Established in 1973, GI Security is a licensed security company. It provide trained guards across India and in
Nepal and Bhutan. In 2007, GI Security started a security training division, training guards based on the
requirements of the PSAR Act, 2005. This has further been extended to include training programmes for
guards based on client needs and for international requirements.
I.SECURITY PVT LTD.’s approach to facility management is unique. They work in partnership with its
clients to understand their business needs, thereby ensuring that we deliver a flexible and diverse solution,
every time.
Their flexibility allows its clients to respond to changing business conditions hence enhancing asset value
and maximizing returns.
Mission:
(i) We are in the business of providing trained manpower to fulfill our customer requirements. We
will become one of the top three service providers in terms of turnover and profit in every city we
work in. Target date 31.12.2020.
(ii)Enabling the population of India to earn a better livelihood.
(iii)Adding a value to its services
(iv) Help customers by all means – as happy customers stays with you and they comes back even after
a discontinuity of contract.
(v) Ensure zero error and no service lapses
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Vision:
(i) People: Be a great place to work where people are inspired to be the best they can be.
(ii) Portfolio: Bring to the world a portfolio of quality manpower brands that anticipate and satisfy
customers needs.
(iii)Productivity: Be a highly effective, lean and fast-moving organization.
(iv) Live our values: Our values serve as a compass for our actions and describe how we behave in the
world.
(v) Leadership: The courage to shape a better future by leveraging collective ability

(vi)Accountability: By taking ownership
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(vii)
(viii)
Passion: To achieve goals
Diversity: In services while retaining our identity
(ix)Quality: What we do, we do well
(x) Focus on the market:
 Focus on needs of our customers and potential employees.
 Get out into market and listen, observe and learn.
 Be insatiably curious
(xi)Be the brand: Inspire creativity, passion, optimism and fun
(xii)
(xiii)
Profit:
Maximize long-term return to shareowners while being mindful of our overall responsibilities.
In a decade we should have :
 A turnover of Rs. 1000 crores
 A cash profit of 12%
 A presence all over Asia pacific Region
(xiv) Increase strength / manpower by 1000 per year.
Value Statement:
We believe in:
 Giving customers a good and fair deal.
 Offering a high customer service
 Looking for ways to make it easier to do business with us.
 Communicating daily to make our customers and saying Thank you
 Eliminating bureaucracy in all facets of corporate life / Fast and simple operations
 Valuing each others time / Reducing waste relentlessly
 Making profits to survive and grow
 All shall market to grow the business, recruit and train employees
 Investing in training programmes and valuing our employees by training them twice every
year
 Being a legally, morally, ethically correct company
Quality Policy:
As a leading manpower agency we are committed to determine, agree and conform to our customer’s needs
and expectations. We achieve this by:
 Conforming to re organized quality assurance standard ISO 9001:2008 and prevalent laws
 Communicating our quality policy and working procedures to every employee to ensure they
can perform their work to the highest possible standard
various Implementing employee training procedures, laid down by the customers and
institutes to ensure highest standards of work place practice
 Indemnify customers from all statutory and regulatory requirements
 Offer our customers a high quality service so they can focus on their core business and grow
their profits
 Communicating regularly with our customers to ensure that quality and safety standards are
being met

Work Culture:
Our culture has evolved as result of a constantly changing world we live and work in. Sitting still in this
environment is simply not an opinion; that’s why we are always looking how we can improve, focus and
better serve all our customers.
The result is a culture where everyone is encouraged to stretch themselves, take responsibility for their
actions and challenge the status quo by coming up with fresh ideas.
Our organization has always thrived on innovation – our long list of clientele is testimony to that – and we
encourage our people to work successfully together to achieve ambitious goals. In addition to allowing
employees to take real ownership of their career development, we also provide comprehensive support and
training opportunities.
Company’s Hierarchical Structure:
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4. DATAANALYSIS AND INTERPRETATION
Q-1. Name of the Respondent: Annexure - B
Q-2. City name of the respondent: Annexure - B
Q-3. Service period of the respondents
Service
period
interval
Less than 1
year
1-3
years
3-5 years 5-7 years 7-9
years
More than 9
years
Service
period
28 26 7 1 15 5
Interpretation : Out of the 70 respondents 40 % have a service a period of less than 1 year, 26% of 1 to 3
years, 21% of 7 to 9 years, 10 of 3 to 5 years.
Q-4. Satisfaction level test on present wages
Satisfactory level YES NO
Frequency 36 34
Interpretation : Out of the 70 respondents 36 i.e. 51% are satisfied with the present wages and the rest 49%
i.e. 34 employees are not satisfied with the present wages.
Desired increment in wages
Levels of
increment
1000-
2000
2000-3000 3000-4000 4000-5000 More than
5000
Frequency 7 11 11 4 1
Interpretation: Out of the 40 respondents who are not satisfied with the present salary package 28% expects
an increment of 2000-3000 Rs. and another 28% group of employees expects 3000-4000 Rs. increment. 17%
expects an increment of Rs. 1000-2000.
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Q-5: Effect of no increment for the next 1 year
Remarks on Job Change Change
job
Will not change
job
Frequency 33 37
Job change behavior versus
service period
Frequency
of Job
change
Frequency of no
change
Less than 1 year 19 9
1 – 3 years 11 15
3 – 5 years 3 4
5 – 7 years 0 1
7 years and above 0 8
Interpretation : If there is no increment for the next 1 year then there is a chance of loosing 47% employees
from the present working strength. So it is recommended to have at least some increment every year to retain
the employees.
Further it can be seen that there in an inclination of job change among the employees (58%) who have not
yet completed 1 year in this company. The job change behavior having a lower effect as the service period is
increasing.
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Q-6: Employees take in case of a hike of Rs. 2000
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Remarks on Rs. 2000 hike per
year
Employees will
stay
Employees will change
job
Frequency 55 15
Service period of employees who
will change job
Less than 1 year 1-2 years More than 2
years
Frequency 10 2 3
Interpretation: It can be seen that if there is an increment of 2000 Rs. per year then 79% of the employees
are willing to stay with the present company and 21% will not stay as they may have higher expectations.
With further study of those 15 employees it has been found that most of those who have higher expectations
towards having an increment every year - 67% have a service period of less than 1 year.
Q-7: Awareness about PF deductions
PF deductions Aware Not aware
Frequency 58 12
Service period versus PF
deductions awareness
Aware Not aware
Less than 1 year 16 12
1 – 3 years 26 0
3 – 5 years 7 0
5 – 7 years 1 0
7 years and above 4 0
Interpretation: 83% of the employees are well-aware about the deductions of PF and the rest 17% do not
have any awareness towards the PF deductions. Further study has revealed that employees who have not yet
rendered a service of at least 1 year, the awareness regarding PF deductions are lower at their side. It is
recommended to carry out proper training programmes to spread awareness regarding the PF deductions
among the freshers.

Q-8: UAN activation status
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UAN activated UAN not activated
68 2
Interpretation: 97% employees UAN is activated.
Q-9: Bank a/c seeding status against UAN
Bank a/c seeded Bank a/c not seeded
68 2
Interpretation: 97% employees AADHAR is seeded to their EPF a/c.
Q-10: AADHAR seeding status against UAN
Interpretation: 71% employees AADHAR is seeded to their EPF a/c.
Q-11: Awareness about the benefit of AADHAR and bank seeding against PF a/c
Aware Not aware
16 54
Interpretation: It can be seen 77% employees are not aware of the future benefits of seeding AADHAR and
bank a/cs against their PF number. It is recommended to carry out proper training programs amongst the
employees regarding such benefits of PF.
AADHAR seeded AADHAR not seeded
50 20

5. ONE SAMPLE Z TEST FOR PROPORTIONS:
Z test in determining whether 80% of the AADHAR has been seeded against the UAN
To test:
H0A : p0A = 0.8 = 80% of the employee’s AADHAR is seeded to their UAN a/c
H1A: p1A < 0.8 = less than 80% employee’s AADHAR is seeded to their UAN a/c
In a sample of 70 employees (50*100)/70 = 71% employee’s AADHAR is seeded to their UAN a/c.
np = 70 * (0.80) = 56
n (1 - p) = 70 * (1 – 0.80) = 14
Since both np and n (1-p) are at least 10, the normal approximation method has been used here.
The test H0A : p0A = 0.8 against H1A: p1A < 0.8 is a left tailed test.
Therefore the appropriate test statistic would be,
Where, is the sample mean, is the hypothesized population proportion and n is the sample size
Here, = 0.71 , = 0.80, n = 70
= - 0.09 / 0.0478= -1.883
Given that the population proportion is 0.80, a sample of n = 70 translates to a z score of -1.883.
Therefore the p value is , p = P [z < -1.883] = 0.02985 assuming the level of significance α at 0.05
Distribution plot of N (0,1)
- 21-
Since p = 0.02985 is less than 0.05, the chosen level of significance, hence we should reject the null
hypothesis and accept the alternative hypothesis.
AADHAR
seeded
AADHARnot
seeded
Total sample
size
50 20 70

Conclusion : There is sufficient evidence that G.I. Security Pvt. Ltd. has not been able to complete the
AADHAR seeding process of 80% of its employees.
Z test in determining whether 80% of the bank a/cs has been seeded against the UAN
To test:
H0B : p0B = 0.8 = 80% of the employee’s bank a/c is seeded to their UAN a/c
H1B: p1B < 0.8 = less than 80% employee’s bank a/c is seeded to their UAN a/c
In a sample of 70 employees (68*100)/70 = 97% employee’s bank a/c is seeded to their UAN a/c.
np = 70 * (0.80) = 56
n (1 - p) = 70 * (1 – 0.80) = 14
The test H0B : p0B = 0.8 against H1B: p1B < 0.8 is a left tailed test.
Here, = 0.97 , = 0.80, n = 70
= 0.17 / 0.0478= 3.556
Given that the population proportion is 0.80, a sample of n = 70 translates to a z score of 3.556
Therefore the p value is , p = P [z < 3.556] = 0.9998 assuming the level of significance α at 0.05
- 22-
Since p = 0.9998 is greater than 0.05, the chosen level of significance, hence we should accept the null
hypothesis and reject the alternative hypothesis.
Bank a/c
seeded
Bank a/c not
seeded
Total sample
size
68 2 70

Conclusion : There is sufficient evidence that G.I. Security Pvt. Ltd. has been able to complete the bank a/c
seeding process of 80% of its employees.
Z test in determining whether 80% UAN activation is complete or not
To test:
H0A : p0U = 0.8 = 80% of the employee’s UAN is activated
H1A: p1U < 0.8 = less than 80% employee’s UAN is activated
In a sample of 70 employees (68*100)/70 =
97% employee’s AADHAR is seeded to their UAN a/c.
np = 70 * (0.80) = 56
n (1 - p) = 70 * (1 – 0.80) = 14
The test H0U : p0U = 0.8 against H1U: p1U < 0.8 is a left tailed test.
Here, = 0.97 , = 0.80, n = 70
= 0.17 / 0.0478= 3.556
Given that the population proportion is 0.80, a sample of n = 70 translates to a z score of 3.556
Therefore the p value is , p = P [z < 3.556] = 0.9998 assuming the level of significance α at 0.05
- 23-
Since p = 0.9998 is greater than 0.05, the chosen level of significance, hence we should accept the null
hypothesis and reject the alternative hypothesis.
UAN activated UAN not activated Total sample
size
68 2 70

Conclusion
There is sufficient evidence that G.I. Security Pvt. Ltd. has been able to complete the UAN activation of 80%
of their contributory members.
- 24-
6. FINDINGS AND RECOMMENDATIONS:
a. As the company G.I. Security Pvt. Ltd. has not been able to complete the AADHAR seeding of
80% of its employees against their UAN, though its bank seeding and UAN activation well-
exceeds 80% , it is not eligible to get a refund of 10% of its administrative charges at this
juncture. However they are in a position to get a refund of 5% of admin charges as 60% of their
AADHAR seeding is completed along with more than 80% figure for bank seeding and UAN
activation.
b. To ensure employee satisfaction, the company needs to give a substantial amount of hike in
wages of its workers so as to help to improve its employees standard of living as also increase its
motivation.
7. LIMITATIONS:
a. Time period is short and resource constraints.
b. This study is based on prevailing employee’s opinion. But the employee’s strength as also
their opinion changes from time to time.
8. BIBLIOGRAPHY:
Books:
 Fundamentals of Statistics: Goon Gupta, Dasgupta
 Fundamentals of Applied Statistics: Gupta and Kapoor
Web-Resources:
 www.epfindia.com
 www.google.com
 www.wikipedia.org
 www.investopedia.com
 www.bankbazaar.com
 www.thehindu.com
 economictimes.indiatimes.com
 www.portal.wabag.in
 www.epfochennai.tn.nic.in
 www.epfkendra.org.in

9. Annexure:
A. QUESTIONNAIRE:
1. Name of the employee
2. Which city you are living in?
3. How long you are working in this company?
4. Are you satisfied with the present salary package? (YES / NO)
If NO then how much more do you expect to have a better living?
5. If you don’t get an increment in the next 1 year then would you like to stay here or would try for a job
change?
(YES / NO)
6. If you get a hike of 2,000/- in every 12 months, would you like to stay here? (YES / NO)
7. Are you aware of the deductions towards your Provident fund? (YES / NO)
8. Is you UAN is activated? (YES / NO)
9. Have your bank a/c been seeded to your UAN a/c? (YES / NO)
10. Have your AADHAR number been seeded to your UAN a/c? (YES / NO)
11. Do you know about the future benefit of seeding your bank a/c number and AADHAR number in EPF?
(YES / NO)
- 25-
B. EMPLOYEE OPINION SHEEET ATTACHED
C. EMPLOYEE WAGE SHEET ATTACHED
D. NOTIFICATION FOR INCENTIVE RETURN SCHEME ATTACHED

A CASE STUDY ON EPF INCENTIVE REFUND SCHEME - CONDUCTED BY NABARUN CHAKRABORTY (HR Professional)

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