Employees Provident Funds & Misc. Provision Act 1952.

Applicable to the whole of India except Jammu & Kashmir. Every establishment in which 20 or more people are employed. PF benefit starts from the date of joining of the employee whether he is hired in the capacity of trainee / probationer / hired through contractor (however if the contractor is deducting PF then no need for organisation to deduct PF, but certificate confirming that fact should be obtained from contractor and kept on record for PF Officer inspection) Employer and employee contribution is equal i.e. 12% on (Basic + DA). PF deducted from the salary of particular month to be deposited by 15th of the next month (+ grace of 5 days available max upto 20 days). PF deducted from July 2008 salary to be deposited on or before 15th August, 2008. For Employer it is mandatory to contribute to PF on (Basic + DA) upto Rs.6,500/-. Contribution to any amount above that is Management policy decision. For eg. Mgt Decision Statutory Requirement A 10,000 6,500 B 6,500 6,500 C 3,500 3,500 Total 20,000 16,500 Employees Contribution 12% Entire to PF

Employers Contribution 12% Pension Fund 8.33% (Organisation doesnt have to bifurcate PF 3.67% PF office will do the allocation) Plus Employer has to pay Administrative Charges as EDLI 0.5% of (basic + DA) EPF Admin Chg 1.1& of (basic + DA) DLI Admin Chg 0.01% of (basic + DA) It is mandatory for employees completing 10 years of service to opt for Pension. Employee completing 10 years of service can not withdraw entire PF (employer and employees contribution). They are allowed to withdraw their contribution 12% and Employers contribution of 3.67% to PF. Balance amount i.e. Employer contribution amounting to 8.33% will be paid by way of pension (calculation done by PF office basis no of years of service and some ratios, all details not known). Therefore it is advisable not to withdraw PF and continue with the same by transferring old PF no to new employer. Employee having less than 10 years service can withdraw entire PF contribution (employer and employees contribution). Employee resigning from the organisation can transfer his/her PF account with one organisation to another organisation (specific forms are there, within city and within state. (dont have information about inter state) In the event of organisations merging they can apply to Commissioner of PF with court order of merger and resolution to that effect for continuing of one PF registration number preferably to the place where Registered Office is situated, and transferring of balance of contribution from the other PF number to this number.

How PF office manages our fund A/c 1 Provident Fund (Employer 3.67 + Employee 12)

A/c 10 Pension A/c 2

(Employer 8.33)

Admin charges towards A/c 1 & A/c 10 @ 1.10% on (basic + DA) of all employees (Employer contribution)

A/c 21 Employees Deposit Link Insurance Paid In the event of Employees death during service (Employer contribution) @ 0.50% on (basic + DA max upto 6500/-) of all employees i.e. total of (a+b) x 0.50% a. Amount of Actual (Basic + DA) < 6500 b. Amount (No of employees with (Basic+DA) > 6500 x 6500) Dont know what happens to this amount if he completes The service healthy A/c 22 Administrative charge on A/c no 21 (Employer contribution) @0.01% on (basic + DA max upto 6500/-) of all employees i.e. total of (a+b) x 0.50% a. Amount of Actual (Basic + DA) < 6500 b. Amount (No of employees with (Basic+DA) > 6500 x 6500) However, if Management takes decision to contribute to PF above Rs.6500/- then all the admin charges are calculated as straight applicable % on employees(basic + DA) For every deposit, withdrawal, transfer, addition, deletion, nomination, loan against PF there are prescribed challans and forms are available with PF office also available on site. PF claim gets settled within a months time. What all PF office requires at inspection 1. Statement of staff strength to check the no of employees are below 20 during the time the benefit of PF was not extended. (Year and month wise statement since the commencement of business giving no of employees on payroll, name, designation etc are not needed) 2. Muster since commencement of business. 3. Certificate of Incorporation 4. Certificate of Commencement of business 5. Shop & Establishment license 6. Memorandum of Articles of Association 7. Salary Sheet for 3 previous months.

8. List of Directors with address 9. List of employees to be covered with reference to date of joining to allot PF numbers to individual employee.