Know about PF

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

2. OBJECTIVEOBJECTIVE
 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 ACTAPPLICABILITY 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’ ProvidentThe Employees’ Provident
Funds Scheme, 1952Funds 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of the fund, has withdrawn the full amount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 EPFContribution under EPF
Scheme,1952Scheme,1952
1. Employees : 12% on Basic + DA
2. Employer :
(a) 3.67% on Basic + DA
(b) Administrative Charges : 1.10% on
Basic +DA
31 Jan 2015

7. The Employees’ PensionThe Employees’ Pension
Scheme, 1995Scheme, 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. ContributionContribution
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 ActFormalities 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 EPFFormalities under EPF
ActAct Casual workers/ Temporary workers/
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 ActFormalities 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 ActFormalities 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-LinkedThe Employees’ Deposit-Linked
Insurance Scheme, 1976Insurance Scheme, 1976
Purpose : To provide life insurance
benefits to the employees of the
establishments covered by the EPF & MP
Act, 1952

14. Contribution under EDLIContribution under EDLI
Scheme,1976Scheme,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 schemeBenefits 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, 1952Compliances under EPF & MP Act, 1952
In SBIBefore 15th
of
every month
ChallanMonthly contribution of Employer
& Employee in Challan for
previous month
2.
RPFC officeBefore 25th
of
every month
12AMonthly Return4
RPFC officeBefore 15th
of
every month
10Return of Employees Leaving3
RPFC officeBefore 15th
of
every month
5Return of Employees Qualifying2.
RPFC officeAt the time of
joining
2Declaration Form from new
Joinees
1.
Remark /
Submitted to
Compliance
Date
Form
No.
Type of ComplianceSr.
No
.

17. Compliances under EPF & MP Act, 1952Compliances under EPF & MP Act, 1952
RPFC officeWhen new Recruit13Transfer of PF A/c6.
After 5 Years of
membership
31Advances for various Purpose8.
RPFC officeAt the time of
Leaving the service
19, 10C &
10D
Final settlement7.
RPFC officeBefore 30th
of April3A & 6AAnnual return & reconciliation
statement
5.
Remark /
Submitted to
Compliance DateForm No.Type of ComplianceSr.
No.

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