This document discusses India's Employee Provident Funds and Miscellaneous Provisions Act of 1952. It applies to factories and establishments with 20 or more employees. It establishes mandatory contributions by employees and employers to funds for employees' provident funds, pension funds, and insurance. Employees can withdraw funds under certain circumstances like retirement, unemployment, or for purposes like education or home construction. The process for online withdrawal requires verifying identification details in the Universal Account Number portal. Employers have responsibilities like registering applicable establishments; deducting, contributing and remitting employee and employer funds; and ensuring employee details are updated.

1. Employee’s Provident Funds
and Miscellaneous Act,1952
Extent: Whole of India (Except Jammu&
Kashmir)
Section :22

2. Applicability
This is applicable to :
1. “Every factory engaged in any industry specified in schedule I”.
in which 20 or more are employed.
2. Any other establishment or class of establishment in which 20
or more are employed.
Or Which may be specified by the central government.
This Act Does not Apply to
Any establishment registered under the co-operative society
Act,1912.
1. Any state-related co-operative society employed less than 50
people and working without the aid of power.
2. A newly setup establishment for an initial period of 5 years.
3. Any Central/State Government establishment having its own
scheme of provident fund.

3. Eligibility
For getting EPF- Any person is eligible, who is
employed:
 For work of the establishment.
 Through contractor.
 Connection with work of establishment is eligible
for the benefit of the Act.

4. Schemes
 Employees provident fund scheme 1952
 Employees deposit linked insurance scheme, 1976
 Employee’s family pension scheme, 1995

5. Employee Provident Fund
Scheme
 The Employee Provident Fund (EPF) is a retirement
benefits scheme in which employees of an organization contribute a
small portion of their basic pay monthly. In the same line, the
employer also contributes a similar amount on their behalf towards
the scheme
 It is mandatory for the employee and the employer to make a EPF
contribution. Each make a 12% contribution of the employees’
dearness allowance and basic salary towards EPF. Given below are
the details of the employees’ and employers’ contribution towards
EPF.
 Employee’s contribution towards EPF - 12% of the employee’s
salary is deducted by the employer on a monthly basis for
contribution towards EPF. The entire contribution goes towards the
EPF account.
 Employer’s contribution towards EPF - The employer also
contributes 12% of the employee’s salary towards EPF.

7.  Contribution for EPF is two parts, one is by the employee, and the other is by the
employer.
Contribution by the Employee is, including basic wage and dearness allowance
is -12%.
Contribution on the part of the employer is-
 8.33% (for Employees Pension Scheme Account of Employee)
 3.67 % (for Employee Provident Fund Account of Employee)
 0.50% ( for Employees Deposit Linked Insurance Account of Employee)
 0.50% ( is Employer has to pay an additional charge for an administrative
account- minimum 500 rupees and if there is no contribution by the employer that
month, an employer must pay rupees 75)
 The interest rate for every month is 8.65%, which may differ every year (interest
rate is calculated every month, but it is deposited in the account at the end of the
financial year)
Example
 For example, the employee is getting a basic salary and dearness allowances at
rupees 15, 000.
 Employee’s contribution to EPF is 12% of 15,000 that is 1,800.
 Employer’s contribution to EPF is 8.33 % of 15,000 that is 1,250.
 Employers contribution for EPF is subtracted from employees contribution that is
(1800-1250=550)
 Total EPF contribution every month is 1800+550=2,350
 Interest for every month is 8.65%/12= 0.7083% (4,700)

9. Employees deposit linked
insurance scheme, 1976
• The scheme Established the purpose of providing life
insurance benefits to the employees.
• The benefit under the scheme is to provide the incentive to
the members to save more in the Provident fund account.
• The benefit under this scheme is linked to the amount of
accumulation in the Provident fund account of the member.
• All the members of the employee’s Provident Fund Scheme
are covered as members of the employee’s deposit linked
insurance scheme also.

10. Employee’s family pension
scheme, 1995
For the benefit of providing family pension and life insurance
benefit. Following benefit package is:
 Pension for life to the member, on retirement and invalidation
 To the member of the family upon the death of the members.
 Facility for capital return ( corpus accretion) on an option formula
basis
 Commutation if pension up to 1/3 Rd of pension amount.
 Retention of membership of the scheme till attaining the age of
68
 Retirement pension under the new scheme will be payable on
fulfilling minimum 10 years eligible service and on attaining the
age of 58 years.

11.  Calculation of EPS pension
The formula to calculate the EPS pension is as follows: Monthly pension
amount= (Pensionable salary X pensionable service) /70."
 Example
suppose contributions to the EPS account have been made for 14 years and 7
months and the pensionable salary is Rs 15,000.
The monthly pension amount will be calculated as follows:
(15,000 x 15) / 70 = Rs 3,214.28
 Suppose you have joined the EPS scheme in January 2010, and you leave the
service in March 2025. Thus, till August 2014, you would have completed 4 years
and 7 months service. Between September 2014 and February 2025, the
completed service period is 10 years and 5 months. Further, assuming that
pensionable salary is Rs 6,500 till August 2014 and Rs 15,000 from September 1,
2014 onwards.
First, the calculation of pension will be made for the period between January 2010
and August 2014 as
 (Rs 6,500 X 5 years)/70 = Rs 464. 28
The pension for the period between September 2014 and February 2025 will be
calculated as follows:
(Rs 15,000 X 10 years)/70 = Rs 2,142.85
Thus, the total pension payable to you will be Rs 2,607.13 (Rs 464.28 + 2142.85).

12. Under what circumstances can
EPF be withdrawn?
Individuals may opt for either partial or complete withdrawal of EPF.
But such withdrawals can be made only under specific
circumstances.
Here is a list of a few such circumstances under which individuals
can withdraw EPF completely –
 On retirement.
 If their unemployment period extends more than two months.
 While switching from one profession to another or in between
jobs. But the duration without a job should be more than two
months.
 Here is a list of a few such circumstances under which individuals
can withdraw EPF partially –
 For a wedding.
 For higher education.
 For purchasing land or constructing a house.
 Repayment of home loan.
 Renovating a housing property.

13. What is the process of EPF
withdrawal?
EPF India members can withdraw EPF by submitting a withdrawal
application either offline or through EPF online portal.
For offline submission –
 Individuals need to fill up a ‘new composite claim form’ or a
‘composite claim form” and submit the same to the EPFO office
under their jurisdiction.
 A composite claim form needs to be attested by their employer.
For online submission –
 Individuals must have an active Universal Account Number (UAN).
 The mobile number used to activate the UAN should be active as
well.
 UAN should be linked to be linked with Aadhaar. They would also
need the PAN and respective bank details with its IFSC code.
 After ensuring all the prerequisites are in place, they need to login
into the UAN online portal.
 Individuals need to verify their KYC details and then proceed as per
instructions.

14. EPF scheme is among one of the largest and biggest saving
schemes available to Indian employees. The key benefits of the
scheme are mentioned below:
 Long-Term Financial Security:
 Retirement Period
 Unseen circumstances: .
 Unemployment/Income Loss.
 Resignation/Quitting of Job:
 Death:
 Disability of the employee:.
 Lay-off:
 Pension Scheme:
 Insurance Scheme:
 Accessible All Over:

15. Responsibilities of an
Employer
 Any Company (Organization) greater than 20 members on it’s rolls should
register (some establishments are exempted)
 Registration is on-line, free of cost and hassle free. No requirement of visiting
EPF office
 PAN is mandatory for registration. Digitally sign and upload requisite
documents.
 Update establishment/owner particulars – online (FORM 5A)
 Timely payment of EPF dues
 Establishments using Bank credit from any Scheduled Commercial Bank are
required to furnish an annual certificate to their auditors
 Enrolment of all eligible employees on its rolls (regular or contractual) –
wages upto Rs 15,000

16. Cont..
 New employee already a member of EPF from his/her previous
employment would continue to
remain EPF member.
 Confirm remittance status of contractual employees belonging to an
EPF registered
establishment before releasing payment to such contractors.
 Enroll employees drawing wages more than 15,000, if they so
desire.
 Verify and confirm that all employees have KYC (Aadhaar, Bank
Account, PAN) compliant UAN
(Universal Account Number).
 Generate UAN for new employee and upload KYC information
 Update family particulars and nomination of all employees who are
EPF members.
 Deduct employee share from employee wages, add matching
employer contribution, EDLI contribution and administrative charges
and remit to EPF along with prescribed return immediately after
disbursement of salary. (last date 15th of the month).
 If employee is having UAN but no KYC, collect and upload KYC

17.  In order to apply for PF withdrawal online, you need to make sure the
following conditions are met.
 UAN should be activated and the mobile number used for activating the UAN
is in working condition.
 UAN is linked with your KYC i.e., Aadhaar, PAN and bank details.
PF online withdrawal procedure is as follows:
 Step-1 Firstly, you need to go to the UAN portal.
 Step-2 Next step is to login with your UAN and password then enter the
CAPTCHA.

18.  Step-3 Next, click on Manage, you will get a drop down as shown
just click on KYC.

19.  Step-4 On clicking KYC you will get this screen just check whether
your Aadhar, PAN and bank details are verified or not. Please note
that for online withdrawal, Aadhar and PAN verification is mandatory
from employer.

20.  Step-5 After verifying the details Go to Online Services, from the
drop-down menu click the Claim form

21.  Step-6 On clicking the Claim form, it will display the member details,
KYC details etc. Then, to submit your claim form just click on the
tab Proceed for online claim.

22.  Step-7 In this form, just select the claim you want under the tab “I
want to apply for”. Withdrawal is available under the following
conditions:
 Form-31 – Partial withdrawal of PF
 Form-19 – Complete PF withdrawal
 Form-10C – Pension withdrawal benefit & scheme certificate
 Form-10D – Claim of monthly pension

23.  Once applied, an OTP will be sent to the Aadhar linked mobile
number. Enter the OTP and submit. On successful submission of the
claim, a reference number will be generated and displayed which
can be used for further claim status check.

24. EPF Challan Account Numbers
EPF Challan contains 5 account numbers but most of us don’t know
about these account numbers on EPF Challan. While generating
challan online in new unified PF portal it is very important to check
whether all the details entered in each account number of PF challan
or not.
 EPF Challan Account Numbers
 Account Number 1: It consists 12% of employee PF contribution
and 3.67% of employer contribution.
 Account Number 2 : It consists 0.5% administration charges of
employer
 Account Number 10 : It consists 8.33% Pension contribution of
employer
 Account Number 21 : It consists 0.5% EDLI (Employee Deposit
Linked Insurance) charges.
 Account Number 22 : It consists 0.01% EDLI administration
charges