IJM (INDIA) INFRASTRUCTURE

LIMITED

HUMAN RESOURCE DEPARTMENT

The Employees Provident Fund

Act 1952

The Employees Provident Fund Act 1952

The Employees Provident Funds Act 1952

Employer role & responsibility
Employee role & responsibility
The Employees Pension Scheme 1995
The Employees Deposit-Linked Insurance Scheme
(EDLI) 1976
List of Forms

Introduction

Salary consists of two parts i.e. earnings &

deductions

Provident Fund is one of the statutory deduction

done by the employer at the time of salary
payment

Provident Fund is governed by the Employees

Provident Fund Act 1952

The Employees Provident Fund Act 1952

Introduction
Provident Fund has come into force to give better
future to employees on their retirement & his
dependants in case of his death during employment
The Employees Provident Funds Act 1952 is compulsory
contributory fund for the future of an employee after
retirement or for his dependents in case of his early
death
Act is applicable to all states of India except Jammu and
Kashmir
Application
Every industry employing 10 or more persons (180
industries are specified in Schedule 1 of the Act)
Every industry employing 10 or more persons which the
Central Govt. may notify
Any other establishment notified by the Central
Government even if employing less than 10 persons 5

The Employees Provident Fund Act 1952

Eligibility & Entitlement
Every employee employed directly / through a
contractor who is in receipt of wages are eligible to
become a member of the fund (exception - Apprentice
under the Apprentices Act and casual laborers)
Irrespective of permanent / probationary employees,
all employees are eligible for joining the PF scheme
from the date of joining the service
Minimum 10% of the basic pay for establishments
employed less than 10 persons; sick industries
declared by necessary authority; Jute, Beedi , Brick,
Coir & Guar Gum Industries / Factories
Other industries maximum 12% of the basic pay
A member can contribute voluntarily more than
statutorily prescribed rate (upto 100% of basic salary)
6
which will be transferred to his PF A/c

The Employees Provident Fund Act 1952

Calculation
12% contribution by the employee is directly
transferred to his Provident Fund A/c
12% is contributed by the employer out of which
8.33% is credited to Employee Pension Fund and the
balance 3.67% is transferred to PF A/c of the employee
1.10% Administration charges on total wages are
payable by the employer
0.50% EDLI calculated on total EDLI slab (Rs. 6500)
wages and payable by the employer towards EDLI
fund
0.01% EDLI Administration charges calculated on total
EDLI slab wages are payable by the employer

The Employees Provident Fund Act 1952

Benefits
Employees can take advances / withdraw the PF in case
of retirement, medical care, housing, family obligation,
education of children & financing of life Insurance Polices
Upto 90% of the PF amount can be withdrawn at the age
of 54 years or before one year of actual retirement
PF amount of the deceased member is payable to
nominees / legal heirs
Immediate income tax exemption under Sec 80C of IT
Act
Equal contribution by the employer
Interest rate is usually higher than the prevailing market
rate (present interest rate @ 8.5%)
PF A/c can be transferred if any member changes from
one establishment to other where the PF Scheme is
applicable
Totally tax free returns
8

The Employees Provident Fund Act 1952

Interest
Interest is credited to the members PF A/c on monthly
running balance
Interest rate is fixed by the Central Government in
consultation with the Central Board of trustees of
EEPF every year during March / April
The present rate of interest is 8.5%
Nomination
The member can nominate other person / persons to
receive the Fund amount in the event of his death
The nomination details provided by the members are
maintained at the Regional Provident Fund Office for
use in the event of death of the member
9

The Employees Provident Fund Act 1952

Annual Statement of Account
After the close of each year of contribution, annual
statement of account will be sent to each member
through establishment where the member was last
employed
The annual statement of fund account will show the
opening balance at the beginning of the year,
contributions during the year, the amount of interest
credited at the end of the period and the closing
balance at the end of the year
If any error is noticed in the annual statement, the
member shall bring the same to the notice of the PF
Office through employer within 6 months from the date
of receipt of the statement
10

The Employees Provident Fund Act 1952

Full Settlement
PF A/c settled immediately under the circumstances;
Retirement after 58 years
Retirement on account of permanent incapacity
Termination of service on retrenchment
Voluntary Retirement Scheme (VRS)
Permanent migration from India to settle abroad /
taking employment
For female members leaving service for getting married
PF A/c settled after two months under the circumstances;
Resignation from the services

11

The Employees Provident Fund Act 1952

Advances / Withdrawals
Purchase of site for construction of house /
construction of House / purchase of flat
Additions / alterations / improvements to the house
Repayment of loan
Hospitalisation for more than a month / major
surgical operation
/ suffering from TB, Leprosy,
Paralysis, Cancer, Heart ailment etc
Marriage of self / son / daughter / sister / brother
Education of son / daughter
Abnormal conditions like natural calamities
Physically handicapped member for purchasing an
equipment to minimize the hardship due to handicap
12

The Employees Provident Fund Act 1952

Employer Role & Responsibility

13

The Employees Provident Fund Act 1952

Monthly Returns
Filing monthly PF returns with the EPFO within 15
days of the close of each month
Provide list of new employees joined in the
establishment during the preceding month & are
qualified to become member in fund (Form-5)
Provide list of employees leaving service during the
preceding month (Form-10)
Employer should file 'Nil' returns if there is no new
employee or no employee leaving the service during
the preceding month
Provide the total no. of members last month, new
members joined and existing members resigned in
the preceding month & total no. of present
subscribers to be fund
(Form-12A)
14

The Employees Provident Fund Act 1952

Annual Returns
Employer shall send to the Commissioner within one
month of the close of the year, a consolidated Annual
Contribution Statement (Form-6A) and individual
employee sheet
(Form-3A) showing the contributions
made by the employees and employer during the year
Penalty
1237% interest is payable for the delayed period in
remitting
contributions/
administrative
charges
depending upon the delayed period
Exemption
Employer can seek exemption from the Scheme if
similar / better benefits are provided other than the
Scheme by forming a Voluntary PF Trust which will work
under the rules & regulations of EPFO
1

The Employees Provident Fund Act 1952

Employee Role & Responsibility

16

The Employees Provident Fund Act 1952

Provide details of self & nominees (Form-2) for PF &
Pension Scheme at the time of joining the establishment
In case of already having PF A/c, apply for transfer of
previous A/c to the present A/c
If willing to increase contribution, inform the same to the
employer to deduct the amount from the salary
(Voluntary Provident Fund).
Voluntary PF can be upto 100% of wages
Understand that the employer is not liable to pay any
contribution on voluntary PF
Periodically verify the details maintained by the employer
Don't allow employer to deduct his share of contribution/
administrative charges payable by him from the wages
Understand that Employees' Provident Fund Organization
does not have any agent / middlemen
17

The Employees Pension Scheme 1995

Employees Pension Scheme 1995

18

The Employees Pension Scheme 1995

Introduction
To give long term protection / financial security to employee
upon retirement and his family in case of his pre-mature
death, family pension scheme has come into force by
diverting 8.33% contribution made by employer towards PF
scheme
Application
Scheme is compulsory for all the existing members who
become members of the Employees Provident Fund Scheme
Eligible
Monthly pension to employees on retirement
Widows on death of the member
Children of the member below 25 years age
Monthly pension to members upon permanent
disablement during service

total
19

The Employees Deposit-Linked Insurance Scheme

1976 (EDLI)

The Employees Deposit-Linked

Insurance Scheme 1976
(EDLI)

20

The Employees Deposit-Linked Insurance Scheme

1976 (EDLI)
Application
EDLI scheme is compulsory for all the existing
members who become members of the PF Scheme
Life insurance benefit (death coverage) of the
employee is available under this scheme while in
service
Calculation
EDLI is calculated on EDLI slab Rs. 6500/0.50% EDLI calculated on total EDLI slab (Rs. 6500)
wages and transferred to EDLI fund
0.01% Administration charges calculated on total EDLI
wages
EDLI / administration charges are payable by the
employer
21

The Employees Deposit-Linked Insurance Scheme

1976 (EDLI)
Eligible
Person who is eligible to receive PF dues of deceased
member who died while in service is only eligible to
receive EDLI fund
Exemption
Employer can seek exemption from the Scheme if
similar / better benefits are provided other than the
Scheme with the consent of majority of employees
(Ex: IJM opted LIC as it is giving death coverage of
Rs. 1,60,000/- under EDLI instead of Rs. 60,000/given by EPFO)

22

List of Forms

List of Forms

23

List of Forms
Forms For Claiming Benefits UnderPF Scheme
Form

Purpose

For transferring the PF A/c of a member from one

13
establishment to another establishment covered
(revised)
under the Act / Scheme
14

Application for financing a life insurance policy out of

PF A/c

19

To be submitted by a member to withdraw his PF dues

on leaving service / retirement / termination

20

In the event of death of member, this form is to be

used by a nominee / family member to claim the
member's PF accumulation

31

To be used by PF members to avail advances /

withdrawals as provided in the scheme
24

List of Forms
Forms For Claiming Benefits UnderPension Scheme
Form

Purpose

10 C

For claiming :
- Refund of Employer share
- Withdrawal benefit
- Scheme certificate for retention of membership

10 D

To be submitted by the first claimant i.e.

- member
- widow / widower
- nominee

25

List of Forms
Forms For Claiming Benefits UnderEDLI Scheme
Form

Purpose

5 (I.F.)

To be submitted by the person eligible to receive the

PF A/c dues of the deceased member who died while
in services

26

THANK YOU

27