emploees provedent fund

7/29/2019 Emploees Provedent Fund

1/21

DR. M.K. PANDEY. ACS,LL.M,MBA,ACMA,PH.D


2/21

Establishments employing 20 or more persons andengaged in any of the 180 industries / Classes ofBusinesses specified.

Co-operative Societies, employing 50 or more persons &

working without the aid of power. Establishments not coverable statutorily can come under

the coverage of the Act statutorily. An establishment continues to be covered under the Act,

irrespective of the fall in the employment strength.

Since the Act applies on its own force to theestablishments, the employers are required to file theparticulars in the specified format for registration andallotment of business number.


3/21

Statutory rate of contribution is 12% ofemoluments (basic wages, dearness allowance,cash value of food concession and retaining

allowances if any,) in the case of 175establishments. A matching contribution is to be collected from

the emoluments of the employees.Out of 12% (or 10% as the case may be) of theemployer's share of contribution, 8.33% is to beremitted towards pension fund.

Employer is also required to pay a contributionof 0.5% of the emoluments towards EDLIS'1976.


4/21

Rate of contribution shall be 10% in the caseof the following:

Brick, beedi, jute, guar gum factories, coirindustry other than spinning sector.

Establishments declared as sick undertakingsby BIFR.


5/21

Employees' Provident Fund Scheme: Every employee (including part-time workers

and those employed by or through contractors)

shall be entitled to become a member of theScheme from the date of joining the factory orthe other establishment. (Para 26)

Every excluded employee shall be entitled tobecome a member from the date he ceased tobe such employee.

Every member of an exempted Provident Fundon joining establishment to which the Schemeapplies.


6/21

Any employee who is not otherwise eligible to becomemember of the Scheme, on request by him and his employer.

Every newspaper employee other than an excluded

employee shall be entitled to become member of the Fundafter completion of 3 months continuous service or if he hasactually worked for 60 days during 3 months or less (There isno wage ceiling in the case of newspaper employee). (Para80)

Every Cine Worker other than an excluded employee shall beentitled to become a member of the Fund if he has worked innot less than three feature films with one or more producersprovided his pay at the time of joining the Fund does notexceed Rs. 1600/-P.M or Rs.15,000/- per year. (Para 81)


7/21

Every employee who became member of the Employees'Provident Fund Scheme on or after 16-11-95. (Employeewho is above the age of 58 on the date of joining theEmployees' Provident Fund Scheme shall not be enrolled).

Every employee who is a member of Employees'Provident Fund Scheme 1952 and who has not opted forerstwhile Employees' family pension scheme, may alsobecome a member if he opts for Employees' PensionScheme.

Every employee who was a member of Employees'Provident Fund Scheme and has left service between 1-4-93 and 15-11-95 can also join the Employees' PensionScheme by submission of option.


8/21

The Employees' Pension Schememembership will cease from the date the

member attains 58 years of age . However, hewill continue to be a member of Employees'Provident Fund till he leaves the service andwithdraws the Provident Fundaccumulations.


9/21

a) Employees' Provident Fund Scheme:1.10% of total wages on which Provident Fund isrecovered subject to a minimum of Rs. 5/- shall bepayable by the employer every month . Prior to1.8.98, w.e.f. 1.8.98 .65% of total wages

b) Employees' Pension Scheme :No administrative charges are payable by theemployer .The entire cost of administration is met by

Central Government . c) Employees' Deposit Linked Insurance Scheme:0.01% of the total on which the Employees' DepositLinked Insurance contributions recovered subject to aminimum of Rs. 2/- per month


10/21

a) Employees' Provident Fund Scheme:0.18% of the total wages on which ProvidentFund is recovered .

b) Employees' Pension Scheme Scheme:Nil . c) Employees' Deposit Linked Insurance

Scheme:0.005% of the total wages of the employees whoare entitled to become members of theEmployees' Deposit Linked Insurance Schemesubject to a minimum of Re. 1/


11/21

a) Employees' Provident Fund Scheme (Para 36)and (Para 36A): Enrol the eligible employees as Employees' Provident Fund

subscriber from the right date. Send initial returns in Form 5A , F9(Revised) , accompanied by

F2(Revised), monthly returns in F5, accompanied by F2, F10, F12Aaccompanied by challans and annual return in F3A accompaniedby F6A.

To maintain the inspection note book for an inspector to record hisobservation.

Maintain such accounts in relation to the amounts contributed tothe fund andby his employees.

To comply with all the directives issued by the Central Board forproper implementation of the scheme.

Pay to the Fund within 15 days of the close of the month both theshares of contribution and administrative charges/ inspectioncharges


12/21

Employer also contributes to Members PF @3.67% (1.67% in case of sick industry , beedi)

EPFO guarantees the Employer contribution and

Govt. gives a decent interest to PFaccumulations Member can withdraw from this accumulations

to cater financial exigencies in life - No need torefund unless misused

On resignation, the member can settle theaccount. i.e., the member gets his PFContribution, Employer Contribution andInterest.


13/21

Pension to Member Pension to Family (on death of member) Scheme Certificate

Withdrawal benefits No amount is taken from Member to give

Pension to the Member. Employer and Govt.contributes to Pension fund @8.33% [email protected]% respectively

EPFO guarantees pension to members, even ifthe Employer has not contributed to PensionFund


14/21

This Certificate shows the service & familydetails of a member

This is issued if the member has not attainedthe age of 58 while leaving an establishmentand he applies for this certificate

Member can surrender this certificate while

joining another establishment and the servicestated in the certificate is added with theservice he is gaining from the newestablishment.


15/21

After attaining the age of 50 or above, themember can apply for Pension by

surrendering this scheme certificate (if totalservice is atleast 10 years) This is a better choice than Withdrawal

Benefit, as a member dies holding a validscheme certificate, his family will get pension(Death when NOT in service)


16/21

IF not eligible for pension, member maywithdraw the amount accumulated in his

pension account the calculation of this amount is based only

on (i) Last average salary and (ii) Service (Notbased on actual amount available in PensionFund Account)


17/21

Form-19 : To claim final settlement of Provident Fund by amember.

Form-20 : To claim Provident Fund by nominee/legal heir on deathof the member.

Form-10-D : To claim pension. (In duplicate : If within state, Intriplicate : If outside state.)

Form-10-C : To claim withdrawal benefit/scheme certificate underEmployees' Pension Scheme '95.

Form-5IF : To claim assurance benefit under Employees' DepositLinked Insurance '76 by nominee/legal heir of a member.

Form-31 : To claim temporary withdrawal/advance underEmployees' Provident Fund scheme '52.

Form-13 : To effect transfer of Provident Fund/Pension from oneA/C to another


18/21

Application should be signed by the member/claimant. It should be attested by the former employer. In case attestation by the

former employer is not possible, it should be got attested by any otherauthorized official specified with application form.

Application for final settlement can be sent by a member on

completion of 2 months from the date of leaving service, if the reason forleaving service is other than superannuation, medical ground,retrenchment and V.R.S./ Female members getting married etc.

Desired mode of payment can be given legibly, if the amount involvedis more than Rs. 2000/-. The amount will sent by deposit in payees' banka/c. To facilitate this, Bank a/c no., name and address of the bank shouldbe furnished. An advance stamped receipt should also accompany thisapplication.

Application may be supported by the return Form-10, showing thedetails of leaving service and details of contribution for the year in Form-3A, if not sent earlier by the employer.


19/21

Nominee/legal heir should apply in Form-20/Form-10-D /Form-5IF.

If the member has not executed any nomination,

application should be supported by certificate offamily members issued by employer/revenueofficial/sworn in an affidavit by the family/member/legal certificate from a court of law.

Death certificate of the member. Certificate of the employer stating whether the

death was while in service of the member or not.


20/21

Joint photograph of member/spouse or the claimant shouldaccompany the application.

Option for return of capital/commutation should be specified clearly.

Details of non-contributory period during the service, wages/salaryfor last 12 months should also accompany, if not already sent.

Details of the branch of the specified bank may be given legibly.

Date of birth certificates of children

In case of death away from service, an undertaking by the claimant tothe effect that the member was not working / had not worked in anyother covered establishment after exit from the establishment on thebasis of which pension is being claimed.


21/21

emploees provedent fund

Documents