FOR EMPLOYEES

For New Entrants:

Enrolment: An employee is eligible for membership from the day he joins the covered establishment.

If the employees emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.

Declare previous employment details, if any, in Form No. 11 to the employer. On becoming a member of the Schemes file details in Form No. 2 (family particulars/ nominations) through the employer.

Rate of contribution payable by a member shall be @ 12% of his emoluments. A member can contribute statutorily over and above the prescribed rate.

For Existing Members:

Enrolment: Any change in the family status, such as, o o o o

Marriage of the member. Additions / deletion in the family. Legal adoption of the children. Change of nominee, is to be filed in Form No. 2 through the employer.

In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPFO office, through his employer.

A member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc.

APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952 The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole India except Jammu & Kashmir. Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.

Employing 20 or more persons. Cinema Theatres employing 5 or more persons.

The Act does not apply to:

The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)

The establishment to which this Act applies shall continue to be governed by this Act, even if the number of employees falls below 20 at a later date. [1(5)]. 16(1)(b) Establishments under the control of state/central Govt.& employees who are getting benefits in the nature of 16(1) (b) contributory P.F. or old age pension as per rules framed by the Govt. 16(1)(c) Establishment set up under any central, provincial or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules. Voluntary Coverage If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing, the Act may be applicable to such establishment (voluntary coverage under section 1(4))

RATES OF CONTRIBUTION: a) The Employees' Provident Fund Scheme In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer. However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed. Any sick industrial company as defined in Clause (0) of Sub-Section (1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.

Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth. Any Establishment engaged in manufacturing of (a) Jute, (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

b) The Employees' Pension Scheme From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 ). The Central Government also would contribute at the rate of 1.1 / 6% of total wages. c) Employees' Deposit Linked Insurance Scheme: No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).

EMPLOYER
Coverage

Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified. Co-operative Societies, employing 50 or more persons & working without the aid of power. Establishments not coverable statutorily can come under the coverage of the Act statutorily. An establishment continues to be covered under the Act, irrespective of the fall in the employment strength. Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.

Financial Obligations: Contributions:

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments.

Rate of contribution shall be 10% in the case of the following: Brick, beedi, jute, guar gum factories, coir industry other than spinning sector. Establishments declared as sick undertakings by BIFR. A matching contribution is to be collected from the emoluments of the employees. Out of 12% (or 10% as the case may be) of the employers share of contribution, 8.33% is to be remitted towards pension fund.

Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS1976.

Administrative Charges:

An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976. No separate administrative charges for pension scheme

Inspection Charges:

In respect of exempted establishment under P.F. Scheme employer is liable to pay only inspection charges at the rate of 0.18% of emoluments. In the case of establishment exempted from EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.

Interest Liability:

For belated remittances of contributions, administrative / inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.

Damages:

For all the belated remittances of contribution and administration/inspection charges damages are also payable as penalty ranging from 17% to 37% p.a. depending upon delay.

Duties of Employer

Enroll all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees. Remit the contributions and administrative charges before the 15th of the following month. File the initial returns of Form 9, Form 3(P.S.), form 5A. File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues. Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.

The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed. Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees. Make available all relevant records for inspection of visiting officials with due authorizations.

Exemptions under the Schemes Provident Fund

An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27. Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditions governing grant of exemption.

The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.

Pension Scheme

Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS 95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.

There is no provision for exemption of individuals or for class of employees.

EDLI Scheme

The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.