Employees Provident Fund & Miscellaneous Act 1952

7/31/2019 Employees Provident Fund & Miscellaneous Act 1952

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THE EMPLOYEESPROVIDENT

FUNDS AND

MISCELLANEOUSPROVISIONS ACT, 1952


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OBJECTIVEThe Employees provident Funds and Miscellaneous

provisions Act, 1952 is enacted to provide a kind of socialsecurity to the industrial workers. The Act mainlyprovides retirement or old age benefits, such as ProvidentFund, Superannuation Pension, Invalidation Pension,Family Pension and Deposit Linked Insurance.

The Act provides for payment of terminal benefits invarious contingencies such as retrenchment, closure,retirement on reaching the age of superannuation,voluntary retirement and retirement due to incapacity towork.


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APPLICABILITY OF THE ACT

To every factory employing 20 or morepersons.

Any establishment to which the Actapplies shall continue to be governed bythe Act even if the number of personsemployed therein at any time falls below.


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The Employees ProvidentFunds Scheme, 1952

Applicability : Every employee employedin or in connection with the work of a

factory or other establishment covered bythe schemes other than an excludedemployee is entitled and required tobecome a member of the fund from the

date of joining the factory orestablishment.


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Excluded Employee :

An employee who, having been a member

of the fund, has withdrawn the full amountof his contribution in the fund (a) onretirement from service after attaining theage of 55 years or (b) before migrationfrom India for permanent settlementabroad; or for taking employment abroad

An employee whose pay at the time he isotherwise entitled to become a member ofthe Fund, exceeds Rs. 6,500/- per month.

A person who, is an apprentice, or who isdeclared to be an apprentice by theauthority specified in this behalf by theappropriate Government.


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Contribution under EPFScheme,1952

1. Employees : 12% on Basic + DA2. Employer :

(a) 3.67% on Basic + DA

(b) Administrative Charges : 1.10% on

Basic +DA

4-Jun-12


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The Employees Pension

Scheme, 1995Purpose: The purpose of the scheme is

to provide for (1) superannuation pension,

retiring pension or permanent totaldisablement pension to employeescovered by the Employees ProvidentFunds and Miscellaneous Provisions Act,and (2) widow or widowers pension,children pension or orphan pensionpayable to the beneficiaries of suchemployees.


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Contribution

1. Employee: Not required

2. Employer :


It is to be noted that where the pay of themember exceeds Rs. 6,500/- per month,

the contribution payable by the employerwill be limited to the amt. payable on hispay of Rs. 6,500/- only.


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Formalities under EPF Act Employees have been appointed on salary (Basic+ DA or Consolidated ) of Rs. 6500 or less orcovered under the provision of the EPF Act, rightfrom the day of commencement of their work.

Employee can contribute more behind Rs.6500similarly employer also at his discretion can do sobut not mandatory

EPF Act is applicable to such of the establishmentswho are engaging 20 or more persons or hadengaged 20 or more persons at any time duringcalendar year.


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Formalities under EPF Act

Casual workers/ Temporary workers/Probationary, even if they had performedwork even for a day, are technically takeninto account for the purpose of assessmentsof strength of 20 for the purpose ofapplicability of the act and are also coveredunder the act. Apprentices/ Trainees areexcluded from the definition of employees.

Percentage of contribution to be deductedfrom employees contribution is 12% of hissalary, namely Basic + DA , but does notinclude HRA, CCA, Incentive, Bonus,Washing allowance etc.


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Formalities under EPF Act

Employer contribution of 12% of the salary ofemployees is to be paid as under

3.67% to be remitted in Account No.1 ( EmployeesAccount)

8.33% to be remitted in Account No.10 towardspension fund

In addition to 12% of the employer has to remit

1.61% paid as under 1.10% Administrative charges in Account No.2

0.5% EDLI in Account No.21

0.01% Inspection charges in Account No.22


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Formalities under EPF Act. To facilitate the employer to make the

above contribution a consolidated challan

( in quadruplicate) is made in which all theabove contributions could be remitted onechallan itself.


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The Employees Deposit-Linked

Insurance Scheme, 1976

Purpose : To provide life insurancebenefits to the employees of theestablishments covered by the EPF & MPAct, 1952


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Contribution under EDLIScheme,1976

1. Employees : Not required

2. Employer :


(b) Administrative Charges : 0.01% on

Basic +DA

Where the monthly pay of an employee is more thanRs. 6,500 the contribution payable in respect of him

by the employer is limited to the amts payable on a

monthly pay of Rs. 6,500 only.


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Benefits of EDLI schemeThe benefit provided under the scheme in the

nature of life insurance as follows:

1. On the death of an employment while in servicea lump sum insurance amount is payable to hisnominee or family members.

2. The insurance amount is equal to the averagebalance in the account of the deceasedemployee in the Provident Fund during a periodof 12 months immediately preceding his death.

In case the average balance exceedsRs.35,000/- the insurance amount payable isRs. 35,000/- plus 25% of the amount in excessof Rs. 35,000/- subject to a ceiling of Rs.

60,000/-.


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Compliances under EPF & MP Act, 1952

In SBIBefore 15th of

every month

ChallanMonthly contribution of

Employer & Employee in Challanfor previous month

2.

RPFC officeBefore 25th ofevery month

12AMonthly Return4


10Return of Employees Leaving3


5Return of Employees Qualifying2.

RPFC officeAt the time ofjoining

2Declaration Form from newJoinees

1.

Remark /Submitted to

ComplianceDate

FormNo.

Type of ComplianceSr.No

.


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Compliances under EPF & MP Act, 1952

RPFC officeWhen new Recruit13Transfer of PF A/c6.

After 5 Years ofmembership

31Advances for various Purpose8.

RPFC officeAt the time ofLeaving the service

19, 10C &10D

Final settlement7.

RPFC officeBefore 30th of April3A & 6AAnnual return & reconciliationstatement

5.

Remark /Submitted to

Compliance DateForm No.Type of ComplianceSr.No.


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THANK YOU.

Employees Provident Fund & Miscellaneous Act 1952

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Transcript of Employees Provident Fund & Miscellaneous Act 1952