HUMAN RESOURCE DEPARTMENT

1

By Rajasekar

The Employee’s Provident Funds Act 1952

Employer role & responsibility

Employee role & responsibility

The Employees Pension Scheme 1995

The Employees Deposit-Linked Insurance Scheme (EDLI)

1976

List of Forms

2

Salary consists of two parts i.e. earnings & deductions

Provident Fund is one of the statutory deduction done by the

employer at the time of salary payment

Provident Fund is governed by the Employee’s Provident

Fund Act 1952

3

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

Eligibility 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 persons4

Eligibility & Entitlement Every employee employed directly / through a contractor who

is in receipt of wages are eligible to become a member of the fund (exception - Apprentice under the Apprentices Act and casual laborers)

Irrespective of permanent / probationary employees, all employees are eligible for joining the PF scheme from the date of joining the service

Minimum 10% of the basic pay for establishments employed less than 10 persons; sick industries declared by necessary authority; Jute, Beedi , Brick, Coir & Guar Gum Industries / Factories

Other industries maximum 12% of the basic pay A member can contribute voluntarily more than statutorily

prescribed rate (upto 100% of basic salary) which will be transferred to his PF A/c

5

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

6

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

Equal contribution by the employer 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

7

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

8

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 through form 23.

Form 23 will show the opening balance at the beginning of the year, contributions during the year, the amount of interest credited at the end of the period and the closing balance at the end of the year

If any error is noticed in Form 23, the member shall bring the same to the notice of the PF Office through employer within 6 months from the date of receipt of the statement

9

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

PF A/c settled after two months under the circumstances;◦ Resignation from the services

 

10

Advances / Withdrawals Purchase of site for 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 Physically handicapped member for purchasing an

equipment to minimize the hardship due to handicap

11

Employer Role & Responsibility

12

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)

13

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

Employee Role & Responsibility

15

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 Understand that Employees' Provident Fund Organization

does not have any agent / middlemen

16

Employees Pension Scheme 1995

17

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

19

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% EDLI Administration charges calculated on total EDLI

wages EDLI / administration charges are payable by the employer

20

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

21

List of Forms

22

Forms For Claiming Benefits Under PF Scheme

23

Form Purpose

13(revised)

For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme

14Application for financing a life insurance policy out of PF A/c

19To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination

20In the event of death of member, this form is to be used by a nominee / family member to claim the member's PF accumulation

31For the use of PF members to avail advances / withdrawals as provided in the scheme

Forms For Claiming Benefits Under Pension Scheme

24

Form Purpose

10 CTo be submitted by a member to withdraw his EPS fund

10 D

To be submitted by the first claimant i.e.- member - widow / widower

- Orphan- nominee

Forms For Claiming Benefits Under EDLI Scheme

25

Form Purpose

5 (I.F.)To be submitted by the person eligible to receive the PF A/c dues of the deceased member who died while in services

Summary

26

Form Purpose

2 Nomination Form

5Return of Employees qualifying for membership to the Employees' Provident Fund for the first time during every month.  Within 15 Days of the following month.

10 Return of members leaving service during the month.

12AConsolidated Statement of dues and remittance By 25th of the following month to which the dues relate.

3A Member's annual Contribution card 

6A Consolidated annual contribution statement

27

January

•Before 15th P.F., P.F. Challan

•Before 25th P.F Form 5, 10 & 12A(P.F)

•Monthly statutory register daily/end of the month

(Monthly statutory register should be maintained)

February

•Same as January month

March

•Before 15th P.F., P.F. Challan

•Before 25th P.F Form 5, 10 & 12A(P.F)

•P.F, P.F. Annual Returns form 6A & 3A

•Monthly statutory register daily/end of the month

(Monthly statutory register should be maintained)

April to December

•Same as January month

28