Pf & miscellaneous provisions act

1. MASTER OF SOCIAL WORK – II YR
PRESENTATION
ON
THE EMPLOYEE
PROVIDENT FUND
&
MISCELLANEOUS
PROVISIONS ACT,
1952
(EPF & MP SCHEMES)

2. SYNOPSIS
 The Employees Provident Fund & Miscellaneous Provisions Act, 1952:-
◦ Objects of the Act;
◦ Applicability/Non-Applicability of the Act;
◦ Features of the Scheme.
 Employees Pension Scheme, 1995:-
◦ Purpose of the Act;
◦ Quantum of Contribution;
◦ Formula to calculate Pension Fund.
 Employees Deposit Linked Insurance Scheme, 1976:-
◦ Features of the scheme;
◦ Benefit to nominee of employee;
 Composition of Central Board of Trustees.
 Determination of Contribution payable.
 Appeal against the order of the officer.
 Employees Own Provident Fund Account authorization.
 Transfer of accounts.
 Penalties.
 Power of Inspectors.
 Conclusion.

3. OBJECT OF THE ACT:
o To provide retirement benefit to the employees in the form of
lump sum amount and also provide for a pension scheme to the
employee & his family. Following schemes are covered under the
Act by Central Government:
 The Employees Provident Fund & Miscellaneous Provisions
Act, 1952.
 Employees Pension Scheme, 1995.
 Employees Deposit Linked Insurance Scheme, 1976.

4. APPLICABILITY OF THE ACT
Every establishment which is a factory engaged in any industry specified in Schedule I to the
Act and in which 20 or more persons are employed. (10 employees w .e .f 9 Nov 2010)
Any other establishment or class of establishment employing 20 or more persons which may
be specified by Central Government by notification in official gazette.
Central Government can also apply provisions of the Act to any establishment employs less
than 20 persons.
Even if the provisions of PF Act are not applicable in a particular establishment, if employer
and majority of employees agree, the Central Provident Fund Commissioner can apply the
provisions to that establishment by issuing a notification in official Gazette.
Once the provisions of Act become applicable, it continues to be applicable even if number
of employees fall below 20.

5. NON-APPLICABILITY OF THE ACT
Any establishment registered under Cooperative
Societies Act or State Law relating to Cooperative
societies, employing less than 50 persons and
working without paid of power.
To any establishment belonging to or under Control
of Central Government or State Government
To any establishment set up under any Central or
State Act
Any other establishment newly set up until the expiry of 3ye

6. The Employees Provident Fund Scheme, 1952
Central Government through
notification in the Official Gazette
frames a Scheme for
establishment of provident funds
for the employees of the
establishment.
The Fund shall vest in & be
administered by the Central Board
of Trustees and Executive
Committee

7. FEATURES OF THE
SCHEME
QUANTUM OF CONTRIBUTION:
The employer’s and employee’s contribution is 12% each.
The employer’s contribution to the Provident Fund will be
10%/12% of the Pay ( i . e Basic Wages +D . A + Retaining
Allowance)
The Central Government is empowered to increase the rate
of contribution to 12% by way of notification in the official
Gazette.
Employee earning more than Rs.6,500 per month is eligible
for availing this scheme.

8. DIVERSION TO PENSION SCHEME:
Out of employer’s contribution of 12% the
employer’s contribution of 8.33% will be diverted to
Employees Pension Scheme. The balance will be
retained in the EPF Scheme.
Thus, on retirement, the employee will get his full
share plus the balance of employer’s share
retained to his credit in EPF account.
INVESTMENT:
The amount received by way of Provident Fund
Contributions is to be invested by the Board of
Trustees in accordance with the investment pattern
approved by the Government of India. The
members get interest on the money standing to the
credit at a rate recommended by the Board of
Trustees approved by the Government of India

9. EMPLOYEES PENSION
SCHEME,1995
Purpose of this Scheme:
To provide Superannuation scheme, retiring pension or
permanent total disablement pension to the employees of
the establishment to whom the Act applies.
To provide widow or widower’s pension, children
pension or orphan pension payable to the beneficiaries of
such employees.

10. Quantum of Contribution to the
Pension Fund:
Such sums from the Employer’s contribution to EPF
Scheme as may be specified in the Pension Scheme.
However the sum shall not exceed 8.33% of the Pay
(Basic Wages+ D. A +Retaining Allowance),
balance-3.67% as the case may be, will be credited
in employee’s name in Provident Fund account.
Monthly Pension=Pensionable Salary*(Pensionable
Service+2)/70.
For e.g. Pensionable service=33 years, pensionable
salary= Rs. 5,000,
Monthly pension = 5,000*{33+2}/70= Rs. 2,500.

11. Employees Deposit Linked Insurance
Scheme, 1976
Purpose of the Scheme:
To provide Life insurance benefits to the employees
of the establishment to whom the Act applies. After
the Insurance Scheme has been framed , the
Central Government Shall establish a deposit
Linked Insurance scheme by way of notification in
the Official gazette.
Contribution :
Employees : Not required..Employer :(a) 0.50% on Basic + DA
(b) Administrative Charges : 0.01% on Basic +DA and retaining
allowance(if any)Where the monthly pay of an employee is
more than Rs.6,500 the contribution payable in respect of him
by the employer is limited to the amounts payable on a
monthly pay of Rs. 6,500 only

12. Benefit to nominee of employee:
The insurance amount is
equal to the average
balance in the account of
On the death of the deceased employee
in the Provident Fund
an employee during a period of 12
while in service a months
lump sum immediately preceding
his death. In case the
insurance amount average balance
is payable to his exceedsRs.35,000/- the
insurance amount
nominee or payable is Rs. 35,000/-
family members. plus 25% of the amount
in excess of Rs. 35,000/-
subject to a ceiling of Rs.
60,000/-.

13. Statutory Forms Of Provident Fund
 Form 5: Employees qualifying for PF for first time (Month Wise)
 Form 10: Employees leaving the service (Month Wise)
 Form 12A: Statement of contribution (Monthly)
 Form 3A: Contribution card for specific currency period(Employee wise)
 Form 6A: Annual Statement of contribution (Company Wise)Declaration: By the
employee
 Form 2: Nomination and Declaration
 Form 19: To claim final settlement of Provident Fund by member
 Form 10C: Claiming withdrawal Benefit/Scheme certificate
 Form 20: To claim Provident Fund by nominee/legal heir on death of the member.
 Form 10-D:To claim pension. (In duplicate :if within state, in triplicate: if other state.
 Form 5IF: To claim assurance benefit under Employees Deposit Linked Insurance
nominee/legal heir of a member.
 Form 31: To claim temporary withdrawal/advance under Employees Provident Fund
scheme 52.
 Form 13: To effect transfer of Provident Fund/Pension from one A/c to another

14. Composition of Central Board of
Trustees.
10 persons representing employers and
Chairman & Vice Chairman appointed by employees each – appointed by Central
Central government. Government in consultation with organization of
employees.
Max. 15 officials representing Central
Central provident Fund Commissioner.
Government & State Government each.

15. APPEAL & EMPLOYER’s OWN PF A/C
AUTHORIZATION
• Appeal against various orders passed under
the Act can be made to employee’s PF
Appeal : Appellate Tribunal. Appeal is entertained only
after depositing 75% of the amount
demanded.
• An application form provision is made to central Government.
Employer’s • The application must be made by employer and majority of
employees.
• The establishment employs 100 or more persons.
Own PF A/c • The establishment hasn’t committed any default in the payment of
PF contribution or any other offence during 3 years immediately
Authorization: preceding the date of application.
• The Central Government has authorized the employer by an order
in writing to maintain a PF A/C

16. TERMS & CONDITIONS OF
AUTHORIZATION:
Manner of Manner of
Submission of
maintenance Depositing the
Returns.
of PF A/C. Contribution.
Facilities to be Payment of
Other terms &
provided for Administrative
conditions.
inspection. charges.

17. TRANSFER OF ACCOUNTS & PENALTIES
Transfer of A/C:
If the new establishment is covered under PF act;
If the new establishment is not covered under the PF act;
If the old establishment was not covered under the PF act.
Penalties:
Any false statement/ false representation/ avoiding any payment of
benefits under the Act- 5 years imprisonment or Rs. 25,000 or both.

18. POWERS OF INSPECTOR
Enter establishment at
any time and require an Make copies from
To collect information employee to produce books, register or
& ask to furnish before him examination
Information on amount any accounts, books, other documents in
recoverable; register or documents relation to
relating to employment establishment.
of persons.