EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

SCHEMES FRAMED UNDER THIS ACT

1. The Employees Provident Fund Schemes, 1952

2. The Employees Pension Scheme, 1995

3. The Employees Deposit-Linked Insurance Scheme; 1976

OBJECTIVE
To provide institution of Provident Fund for workers in specified industries

SCOPE
To employees drawing pay not exceeding Rs. 6,500/- per month

APPLICATION
The Act extends to whole of India except Jammu and Kashmir

ESTABLISHMENTS COVERED
Subject to the provisions of Section 16 To every establishment - A factory specified in Schedule I and in which 20 or more persons are employed; And As notified by Central Govt.

EMPLOYEES COVERED
To each of the employees whether employed by him directly or through a contractor and the employees contribution shall be equal to the contribution payable by the employer

NON APPLICABILITY SEC 16

Co-operative societies, employing less than 50 persons and working without the aid of power Other State or Central Govt. Establishments having similar schemes & benefits To any other establishment set up under any Central, Provincial or State Act having similar schemes & benefits

IMPORTANT POINTS REGARDING APPLICATION OF ACT

Govt.

can extend it to any establishment

This act doesnt apply if the employer & majority employee has opted other beneficial schemes Once comes under this act will continues to be covered even if no. employees falls below 20.

EMPLOYEES PROVIDENT FUND SCHEMES

Control of Scheme - Fund is vested in and is administered by Central Board Investment - the Board of Trustees in accordance with the investment pattern approved by the Government of India

EXCLUDED EMPLOYEES
An Member who has withdrawn his amount from Fund An employee whose pay at the time has been exceeded Rs. 5000 per month. An apprentice

CONTRIBUTION
Employers contribution 12% of Pay (w.e.f 22.9.1999) Employees contribution 12% of Pay (w.e.f 22.9.1999) Pay includes basic wages + dearness allowance + retaining allowance (if any) + cash value of food concession

FULL WITHDRAWAL OF ACCUMULATED AMOUNT

Amount to be received = Contributed Amount + Interest When employee will get death, permanent disability, superannuation, retrenchment migration from India voluntary retirement, Employee discharges from employment under Industrial Disputes Act, 1947, transfer to an establishment/factory not covered under the Act

ADVANCES & WITHDRAWLS

For payment of Life Insurance towards of a member Purchasing, Construction & renovation of Dwelling house including purchase of Site for the same Closure of establishment > 15 days, not due to strike Non receipt of wages for 2 months or more Hospitalization for 1 month or more, Major Surgical Operation or specified diseases, either himself or family member Marriage Himself, Son/Daughter, or Brother/Sister Post matriculation study - Son/Daughter Member effected by Cut of Electricity Damage of property due to any Calamity For repayment of loans For physically handicapped members to purchase any equipment to minimize hardship

EMPLOYYES PENSION SCHEME

Under Sec 6, Central Govt. replace the Family Pension Scheme, 1971 by this Scheme Central Government Contribution - 1.16% of the wage of the employees. Employees Covered All members of the Family Pension Scheme, 1971 The Non members of prior Schemes have an option to join this Pension Scheme. Notes Minimum 10 years contributory service is required for entitlement to pension Pension on a discounted rate is also payable on attaining the age of 50 years.

CALCULATION OF PENSION
Member Pension = Pensionable Salary x (Pensionable Service + 2) 70 Note Where Contributory Period < 20 years, then the calculation shall be done as contributory Period = 20 years Less 3% x (20 Contribution Period) or 25% whichever is less

MINIMUM PENSION TO BE RECEIVED

Particulars Contribution for 24 yr or more Family Pension member for 10 years minimum widow pension Child Pension (till 25 yrs of age) Orphan Pension Minimum Pension 500 p.m. to 800 p.m. 265 p.m. 450 p.m. > 2500 p.m. 25% of widow pension, Min 115 p.m. 75% of widow pension, Min 170 p.m.

OPTION OF REDUCED PENSION

Employee can reduce the pension by 10%

If above option is opted then

He will get Return of capital = 100 x Original pension in the event of his death

In addition to above his Widow &/or Two Children will continue to get pension upto 25 yrs or life.

EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME SEC 6C Objective For providing life insurance benefit to the employees of any establishment or class of establishments Application of the Scheme To all establishment to which this act applies Exemption from the Scheme If any establishment is having other beneficial schemes Employees Contribution Nil Employers Contribution 1% of total pay
Contd

CONTD.

Administrative expenses 0.01% or Rs. 2 p.m. whichever Is higher Nomination Same as in Provident Fund Payment of assurance benefit Incase of Death Amount = Average Balance in preceding 12 months or membership tenor whichever is less Note In case Average Balance exceeds 25000 ,then Amount payable = 35000 + 25% (35000 Avg. balance) or Rs. 65000 whichever is less

DETERMINATION OF MONEYS DUE

Authorities Central Provident Fund Commissioner, Additional Provident Fund Commissioner, Deputy Provident Fund Commissioner, or Regional Provident Fund Commissioner Mode of recovery of moneys due from employers - As an arrear of land revenue Recovery of moneys by employers and contractors Liability of Contractor Measures for recovery of amount due from employer Recovery Officer Priority of payment of contributions over other debts Insolvent of Winding up

MISC. PROVISIONS

TRANSFER OF ACCOUNTS - If change of Employment

PROTECTION AGAINST ATTACHMENT

POWER TO EXEMPT