Professional Documents
Culture Documents
Presented by: Hari Govind A. 3rd semester Holy Grace Academy of Management Studies,Mala
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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
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Introduction
Salary consists of two parts i.e. earnings &
deductions
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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
Eligibility 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
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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
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Calculation
12% contribution by the employee is directly transferred to his Provident
Fund A/c
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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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
Equal contribution by the employer 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
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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
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Form 23 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 Form 23, 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 5/5/12
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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
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Advances / Withdrawals Purchase of site for construction of House / purchase of flat Additions / alterations / improvements to the house Repayment of loan Hospitalization 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 Physically handicapped member for purchasing an equipment to
minimize the hardship due to handicap
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Monthly Returns
Filing monthly PF returns with the EPFO within 15 days of the close of
each 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 5/5/12 (Form-12A)
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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 5/5/12
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Voluntary PF can be upto 100% of wages Understand that the employer is not liable to pay any contribution on
voluntary PF
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List of Forms
For transferring the PF A/c of a member from one 13 establishment to another establishment covered (revised) under the Act / Scheme Application for financing a life insurance policy out of 14 PF A/c To be submitted by a member to withdraw his PF 19 dues on leaving service / retirement / termination In the event of death of member, this form is to be 20 used by a nominee / family member to claim the member's PF accumulation For the use of PF members to avail advances / 5/5/12 31 17 17 withdrawals as provided in the scheme
Thank You
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