Employee Provident Funds And Miscellaneous Provisions Act 1952
Employee Provident Funds and miscellaneous provisions act 1952 by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india [email_address] mobile : 91+9414430763
Applicablility of law Whereever 20 or more workers are working – on all employees (section 2(f)), some companies are exempted ( section 2fff & sec. 17 ).employer is defined in section 2e and includes owner of factory (defined in 2g) schedule I gives list of industries.
EPF account Employee provident fund account is maintained by employer or government. Employer's liability is calculated as per section 7A and the money is transferred to the account every month. Interest is credited every 6 months. Employees get the money back when they retire. They can also take loan out of this fund. It is the duty of the employer to deposit the dues.
Contribution – sec. 6 Both employee and employer have to contribute 10% of basic + DA as provide fund (PF ) contribution. Employees can make more contrbution to the fund if they desire.
Pension scheme Under Section 6A, Government has introduced a new pension scheme styled Employees’ Pension Scheme, 1995 w.e.f. 16.11.1995, in place of Family Pension Scheme, 1971.
Pension scheme implementation It is based on contribution by employees, there is a central board which makes the scheme and implements it.
Calculation of pension At least 10 year contribution is necessary for pension. Pension amount differs from employee to employee and it is calculated using a formula : Pensionable salary* (pensionalble period +2) / 70
Deposit linked insurance The Act was amended in 1976 and a new Section 6C was inserted empowering the Central Government to frame a Scheme to be called the Employees’ Deposit-Linked Insurance Scheme for the purpose of providing life insurance benefit to the employees of any establishment or class of establishments to which the Act applies.
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