The Employee's Provident Fund Act of 1952 mandates compulsory contributions from both employees and employers to establish a retirement fund for employees in India, providing financial security upon retirement or in case of early death. The Act is applicable to factories and certain establishments with 20 or more employees and outlines eligibility, contribution rates, benefits, and withdrawal conditions. It includes provisions for pensions, insurance, and penalties for non-compliance, ensuring the future welfare of employees and their families.

1. THE EMPLOYEE'S PROVIDENT
FUND ACT, 1952
Presented By:
Priyanaka Sule
Priya Mishra
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2. Introduction
 Salary consists of two parts i.e. earnings & deductions
 Provident Fund is one of the statutory deduction done by
the employer at the time of salary payment
 Provident Fund is governed by the Employee’s Provident
Fund Act 1952
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3. Introduction to EPF
• Provident Fund has come into force to give better future to
employees on their retirement & his dependants in case of
his death during employment
• The Employees Provident Funds Act 1952 is compulsory
contributory fund for the future of an employee after
retirement or for his dependents in case of his early death
• Act is applicable to all states of India except Jammu and
Kashmir
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4. Applicability of the Act
To every factory engaged in any industry specified in schedule 1 to the act
and employing 20 or more persons.
To every other establishment employing 20 or more persons specified but the
central government in this behalf.
Any establishment to which the act applies shall continue to be governed but
the act even if the number of persons employed therein at any time falls below
20.
Where a factory is closed down for good and only four security men are
retained for keeping a watch over the assets and properties of the
establishment, the act would not continue to be applicable to the factory.

5. Eligibility & Entitlement
• Every employee employed directly / through a contractor who is
in receipt of wages are eligible to become a member of the fund
• Irrespective of permanent / probationary employees, all employees
are eligible for joining the PF scheme from the date of joining the
service
• Minimum 10% of the basic pay for establishments employed less
than 10 persons; sick industries declared by necessary authority;
Jute, Beedi , Brick, Coir & Guar Gum Industries / Factories
• Other industries maximum 12% of the basic pay
• A member can contribute voluntarily more than statutorily
prescribed rate (up to 100% of basic salary) which will be
transferred to his PF A/c
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6. Benefits
• Employees can take advances / withdraw the PF in case of retirement,
medical care, housing, family obligation, education of children & financing
of life Insurance Polices
• Upto 90% of the PF amount can be withdrawn at the age of 54 years or
before one year of actual retirement
• PF amount of the deceased member is payable to nominees / legal heirs
• Equal contribution by the employer
• present interest rate @ 8.5%
• PF A/c can be transferred if any member changes from one establishment to
other where the PF Scheme is applicable
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7. Calculation
• 12% contribution by the employee is directly transferred to his Provident
Fund A/c
• 12% is contributed by the employer out of which 8.33% is credited to
Employee Pension Fund and the balance 3.67% is transferred to PF A/c of
the employee
• 1.10% Administration charges on total wages are payable by the employer
• 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and payable
by the employer towards EDLI fund
• 0.01% EDLI Administration charges calculated on total EDLI slab wages
are payable by the employer
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8. Calculation of employees provident fund
1. Let us calculate the contribution of an employee who is getting basic
salary of rs.3500 .
Contribution towards Calculation Amount
EPF Employees share 3500*12% 420
EPS Employer share 3500*8.33% 292
EPF Employer Share 3500*3.67% 128
EDLI Charges 3500*0.5% 17.5
EPF Admin Charges 3500*1.1% 38.5
EDLI Admin Charges 3500*0.01% 0.35(round up to rs.1)

9. Calculation of employees provident fund
2.If an employee (having EPF benefit) drawing a salary of 10,000
(Basic + DA) , then what is the calculation for monthly remittance
1) Employee Contribution (12% of 10000) : 1,200.00
2) Employer Contribution- Pension (8.33 %) : 541.00 (limited to 6500 )
3) Employer Contribution-PF (balance ) : 659.00 ( 1200 - 541 )
TOTAL : 2,400.00

10. Recovery of moneys
If any dispute arises regarding the applicability
of the act to an establishment or as to the amount
of money due from any employer under the act or any
scheme, the central provident fund commissioner, any
additional central provident fund commissioner , any
deputy provident fund commissioner, any regional provident
fund commissioner, or any assistant provident fund commissioner
may decide the same by holding an enquiry.
If a employer pays any contribution or administrative charges for or
on behalf of a contractor. Then, he can recover the same from the
contractor either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the contractor.
The contractor can, then recover the employee’s contribution from the
wages of the employee.

11. Interest
• Interest is credited to the members PF A/c
on monthly running balance.
• The present rate of interest is 8.5%
Nomination
• The member can nominate other person /
persons to receive the Fund amount in the
event of his death.
• The nomination details provided by the
members are maintained at the Regional
Provident Fund Office for use in the event
of death of the member.
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12. OFFENCES
If any person, for the purpose of avoiding any payment to be made under the
act or the scheme, knowingly makes any false statement or false representation,
he would be punished with imprisonment up to one year, or with fine up to
RS.5000 or with both.
If any person makes default in complying with any other provision of the act or
any condition for exemption from any scheme, he would be published with
imprisonment up to six months but which shall not be less than 1 month and with
fine up to 5000 Rs or with both.
If any person convicted of an offence under the act or the scheme commits it
again, he would be punished with imprisonment up to 5 yrs but which shall not
be less than two yrs, plus fine up to Rs. 25,000 s.14 and 14(AA).

13. Advances / Withdrawals
• Purchase of site for construction of House / purchase of
flat
• Additions / alterations / improvements to the house
• Repayment of loan
• Hospitalization for more than a month / major surgical
operation / suffering from TB, Leprosy, Paralysis, Cancer,
Heart ailment etc
• Marriage of self / son / daughter / sister / brother
• Education of son / daughter
• Physically handicapped member for purchasing an
equipment to minimize the hardship due to handicap
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14. Full Settlement
• PF A/c settled immediately under the
circumstances;
– Retirement after 58 years
– Retirement on account of permanent
incapacity
– Termination of service on retrenchment
– Voluntary Retirement Scheme (VRS)
– Permanent migration from India to settle
abroad / taking employment
– For female members leaving service for
getting married
• PF A/c settled after two months under the
circumstances;
– Resignation from the services
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15. Online Provident Fund
• Provident Fund online payment has been devised for
the companies and the general masses so that they can
easily know the Provident Fund online status which is also at times referred
to as Provident Fund online scheme.
• Provident Fund online status is maintained by the Government of India and
hence you can blindly rely upon the website that is mentioned below for
knowing the Provident Fund online scheme.
http://www.epfindia.com/
•Only with one click to this EPFO site, you would be able to get complete
info about almost anything related to your Provident Fund account.
•The best thing about this is that you are allowed to interact with the
customer service agents who would be able to help you with any of your
problems that are related to Provident Fund in some way or the other.

16. The Employees Deposit-Linked
Insurance Scheme 1976
(EDLI)
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17. Application
• EDLI scheme is compulsory for all the existing members who become
members of the PF Scheme.
• Life insurance benefit (death coverage) of the employee is available under this
scheme while in service.
Calculation
• EDLI is calculated on EDLI slab – Rs. 6500/-
• 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and transferred
to EDLI fund
• 0.01% EDLI Administration charges calculated on total EDLI wages
• EDLI / administration charges are payable by the employer
Eligible
• Person who is eligible to receive PF dues of deceased member who died while
in service is only eligible to receive EDLI fund
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18. Employees Pension Scheme 1995
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19. Introduction
 To give long term protection / financial security to employee upon retirement
and his family in case of his pre-mature death, family pension scheme has
come into force by diverting 8.33% contribution made by employer towards
PF scheme.
Application
 Scheme is compulsory for all the existing members who become members of
the Employees Provident Fund Scheme
Eligible
 Monthly pension to employees on retirement
 Widows on death of the member
 Children of the member below 25 years age
 Monthly pension to members upon permanent total disablement during service
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20. Thank You
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