MASTER OF SOCIAL WORK – II YR

PRESENTATION

ON

THE EMPLOYEE PROVIDENT FUND

&

MISCELLANEOUS PROVISIONS ACT,

1952

(EPF & MP SCHEMES)

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.

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.

APPLICABILITY OF THE ACTEvery 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.

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 3years

The Employees Provident Fund Scheme, 1952 The Fund shall vest in & be administered by the Central Board of Trustees and Executive Committee

FEATURES OF THE SCHEME

The Central Government is empowered to increase the rate of contribution to 12% by way of notification in the official Gazette.

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.

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.

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

Benefit to nominee of employee:

On the death of an employee while in service a lump sum insurance amount is

payable to his nominee or family members.

The insurance amount is

equal to the average

balance in the account of

the deceased employee in the Provident Fund during a period of 12

months immediately preceding his death. In case the average

balance exceedsRs.35

,000/- the insurance amount

payable is Rs. 35,000/-plus 25% of the amount in

excess of Rs. 35,000/-

subject to a ceiling of Rs.

60,000/-.

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

Composition of Central Board of Trustees.

Chairman & Vice Chairman appointed by Central

government.

Central provident Fund Commissioner.

Max. 15 officials representing Central Government & State Government each.

10 persons representing employers and employees

each – appointed by Central Government in consultation

with organization of employees.

APPEAL & EMPLOYER’s OWN PF A/C AUTHORIZATION

• Appeal against various orders passed under the Act can be made to employee’s PF Appellate Tribunal. Appeal is entertained only after depositing 75% of the amount demanded.

Appeal :

• An application form provision is made to central Government.• The application must be made by employer and majority of

employees.• The establishment employs 100 or more persons.• The establishment hasn’t committed any default in the payment of PF

contribution or any other offence during 3 years immediately preceding the date of application.

• The Central Government has authorized the employer by an order in writing to maintain a PF A/C

Employer’s Own PF A/c Authorizatio

n:

TERMS & CONDITIONS OF AUTHORIZATION:

Manner of maintenance of

PF A/C.

Submission of Returns.

Manner of Depositing the Contribution.

Facilities to be provided for inspection.

Payment of Administrative

charges.

Other terms & conditions.

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.

POWERS OF INSPECTOR

To collect information & ask to furnish

Information on amount recoverable;

Enter establishment at any time and require

an employee to produce before him

examination any accounts, books,

register or documents relating to employment

of persons.

Make copies from books, register or

other documents in relation to

establishment.