IJM (INDIA) INFRASTRUCTURE LIMITED

HUMAN RESOURCE DEPARTMENT

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The Employee’s Provident Fund Act
1952

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The Employee’s Provident Fund Act 1952

The Employee’s 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

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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 Employee’s

Provident Fund Act 1952

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The Employee’s 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 Employee’s 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) which will be
transferred to his PF A/c 6
The Employee’s 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

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The Employee’s 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
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The Employee’s 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
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The Employee’s 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

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The Employee’s 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

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The Employee’s 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

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The Employee’s Provident Fund Act 1952

Employer Role & Responsibility

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The Employee’s 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)
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The Employee’s 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
12–37% 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 15
The Employee’s Provident Fund Act 1952

Employee Role & Responsibility

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The Employee’s 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
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The Employees Pension Scheme 1995

Employees Pension Scheme 1995

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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 total disablement
during service 19
The Employees Deposit-Linked Insurance Scheme 1976
(EDLI)

The Employees Deposit-Linked

Insurance Scheme 1976
(EDLI)

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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

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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)

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List of Forms

List of Forms

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List of Forms

Forms For Claiming Benefits Under PF Scheme

Form Purpose

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

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

14 Application for financing a life insurance policy out of PF A/c

To be submitted by a member to withdraw his PF dues on

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leaving service / retirement / termination
In the event of death of member, this form is to be used by a
20 nominee / family member to claim the member's PF
accumulation
To be used by PF members to avail advances / withdrawals
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as provided in the scheme
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List of Forms

Forms For Claiming Benefits Under Pension Scheme

Form Purpose

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

To be submitted by the first claimant i.e.

- member
10 D
- widow / widower
- nominee

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List of Forms

Forms For Claiming Benefits Under EDLI Scheme

Form Purpose

To be submitted by the person eligible to receive the PF A/c

5 (I.F.)
dues of the deceased member who died while in services

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THANK YOU

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