The Employee’s Provident Fund Act

1952

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 The Employee’s Provident Fund Act 1952

 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

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 Introduction

 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

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 The Employee’s Provident Fund Act 1952
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

Application
 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 persons

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 The Employee’s Provident Fund Act 1952

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
 The Employee’s Provident Fund Act 1952

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

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 The Employee’s Provident Fund Act 1952

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
 Immediate income tax exemption under Sec 80C of IT Act

 Equal contribution by the employer

 Interest rate is usually higher than the prevailing market rate

(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

 Totally tax free returns

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 The Employee’s Provident Fund Act 1952

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

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 The Employee’s Provident Fund Act 1952

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
 The annual statement of fund account 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 the annual statement, 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

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 The Employee’s Provident Fund Act 1952

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

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 The Employee’s Provident Fund Act 1952

Advances / Withdrawals
 Purchase of site for construction of house / 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

 Abnormal conditions like natural calamities

 Physically handicapped member for purchasing an

equipment to minimize the hardship due to handicap

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The Employee’s Provident Fund Act 1952

Employer Role & Responsibility

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 The Employee’s Provident Fund Act 1952

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)

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 The Employee’s Provident Fund Act 1952

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
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The Employee’s Provident Fund Act 1952

Employee Role & Responsibility

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 The Employee’s Provident Fund Act 1952

 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
 Periodically verify the details maintained by the employer
 Don't allow employer to deduct his share of contribution/
administrative charges payable by him from the wages
 Understand that Employees' Provident Fund Organization does
not have any agent / middlemen
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The Employees Pension Scheme 1995

Employees Pension Scheme 1995

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 The Employees Pension Scheme 1995

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
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The Employees Deposit-Linked Insurance Scheme 1976
(EDLI)

The Employees Deposit-Linked

Insurance Scheme 1976
(EDLI)

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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% Administration charges calculated on total EDLI

wages
 EDLI / administration charges are payable by the employer

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The Employees Deposit-Linked Insurance Scheme 1976
(EDLI)

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
(Ex: IJM opted LIC as it is giving death coverage of Rs.
1,60,000/- under EDLI instead of Rs. 60,000/- given by
EPFO)

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List of Forms

List of Forms

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 List of Forms

Forms For Claiming Benefits Under PF Scheme

Form Purpose

For transferring the PF A/c of a member from one

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establishment to another establishment covered under the
(revised)
Act / Scheme

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

To be submitted by a member to withdraw his PF dues on

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leaving service / retirement / termination
In the event of death of member, this form is to be used by a
20 nominee / family member to claim the member's PF
accumulation
To be used by PF members to avail advances / withdrawals
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as provided in the scheme
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 List of Forms

Forms For Claiming Benefits Under Pension Scheme

Form Purpose

For claiming :
- Refund of Employer share
10 C
- Withdrawal benefit
- Scheme certificate for retention of membership

To be submitted by the first claimant i.e.

- member
10 D
- widow / widower
- nominee

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 List of Forms

Forms For Claiming Benefits Under EDLI Scheme

Form Purpose

To be submitted by the person eligible to receive the PF A/c

5 (I.F.)
dues of the deceased member who died while in services

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THANK YOU

Ashish Rawat

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