The Employee Provident Fund (EPF) provides social security for employees by encouraging savings during employment. It benefits employees by saving for retirement, employers by ensuring a steady workforce, and the government by accumulating funds for economic projects. The EPF applies to establishments with 20 or more employees, as well as certain industries like cinemas and contractors, and once covered an establishment cannot withdraw from the program. Employers must contribute 12% of employee salaries to the EPF monthly.

1. EMPLOYEE
PROVIDENT FUND
(“EPF”)
Compliance with laws
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2. OBJECTIVE OF
PROVIDENT FUND
• For Employees • For Employers • For Government
It provides social It provides funds of
It provides a steady considerable
security in a way
workforce, which is magnitude for
inculcating among
them a spirit of essential for utilization on
prosperity of the various projects
savings while they
are employed. establishment. designed to
promote economic
interests.
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3. COVERAGE & APPLICABILITY
Cinemas
Factory Owners
& &
Establishment
Contractors
All establishments
employing 20 or more All Cinema / theaters
employees, either employing 5 or more
directly or through persons.
contractor
All factories employing The Act applies to all
20 or more workmen contractors in the
either directly or business of manpower
through contractor supply.
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4. CONTRIBUTION CALCULATOR
Statutory rate of contribution is 12% of Rate of contribution shall be 10% in the case
emoluments (basic wages, dearness of the following:
allowance, cash value of food concession and
retaining allowances if any,) in the case of 175 Brick, beedi, jute, guar gum factories, coir
establishments. industry other than spinning sector.
Statutory
Deduction
Out of 12% (or 10% as the case may be) of the Employer is also required to pay a
employer’s share of contribution, 8.33% is to contribution of 0.5% of the emoluments
be remitted towards pension fund. towards Employee Deposit Link Insurance
Scheme ’1976.
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5. Statutory Compulsion
Once Covered.
Once
Covered, no
getting out !
An establishment to which the Act has been made applicable, shall
continue to be governed by the Act notwithstanding that the
number of persons employed therein at any time falls or has fallen
below 20 (Twenty).
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6. Prabhjit Gill
Founder – Evaluer.
Partners in Employment Law
Evaluer. Experts at Employment Law