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1952
1
The Employee’s Provident Fund Act 1952
• List of Forms
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Introduction
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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
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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• Upto 90% of the PF amount can be withdrawn at the age of 54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
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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
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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
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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 14
The Employee’s Provident Fund Act 1952
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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
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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 18
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
Form Purpose
Form Purpose
For claiming :
- Refund of Employer share
10 C
- Withdrawal benefit
- Scheme certificate for retention of membership
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List of Forms
Forms For Claiming Benefits Under EDLI Scheme
Form Purpose
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