This document provides an overview of the Employees' Provident Funds and Miscellaneous Provisions Act of 1952 in India. The key points covered include: - The objective of the Act is to provide social security and retirement benefits to industrial workers. - It applies to factories with 20 or more employees and establishes provident funds, pension schemes, insurance benefits and processes for termination payments. - The Employees' Provident Fund Scheme of 1952 requires monthly contributions of 12% of wages by employees and employers. The Pension Scheme of 1995 requires an 8.33% contribution from employers. - Other schemes include the Employees' Deposit-Linked Insurance Scheme of 1976 which provides life insurance benefits funded by a 0.5%

1. THE EMPLOYEES’
PROVIDENT
FUNDS AND
MISCELLANEOUS
PROVISIONS ACT, 1952 BY
VIJAY MEHTA

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of the fund, has withdrawn the full amount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
27 Aug 2012

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 workers/ Temporary workers/
Casual
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 amts 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
Sr. Type of Compliance Form Compliance Remark /
No No. Date Submitted to
.
1. Declaration Form from new 2 At the time of RPFC office
Joinees joining
2. Monthly contribution of Employer Challan Before 15th of In SBI
& Employee in Challan for every month
previous month
2. Return of Employees Qualifying 5 Before 15th of RPFC office
every month
3 Return of Employees Leaving 10 Before 15th of RPFC office
every month
4 Monthly Return 12A Before 25th of RPFC office
every month

17. Compliances under EPF & MP Act, 1952
Sr. Type of Compliance Form No. Compliance Date Remark /
No. Submitted to
5. Annual return & reconciliation 3A & 6A Before 30th of April RPFC office
statement
6. Transfer of PF A/c 13 When new Recruit RPFC office
7. Final settlement 19, 10C & At the time of RPFC office
10D Leaving the service
8. Advances for various Purpose 31 After 5 Years of
membership

18. THANK YOU.