*IJM (INDIA) INFRASTRUCTURE LIMITEDHUMAN RESOURCE DEPARTMENT

The Employees Provident Fund Act 1952*

The Employees Provident Fund Act 1952The Employees Provident Funds Act 1952 Employer role & responsibility Employee role & responsibility The Employees Pension Scheme 1995The Employees Deposit-Linked Insurance Scheme (EDLI) 1976List of Forms*

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 Employees Provident Fund Act 1952 *

The Employees Provident Fund Act 1952IntroductionProvident Fund has come into force to give better future to employees on their retirement & his dependants in case of his death during employmentThe 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 deathAct is applicable to all states of India except Jammu and Kashmir

ApplicationEvery 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*

The Employees Provident Fund Act 1952Eligibility & EntitlementEvery 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 serviceMinimum 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 / FactoriesOther industries maximum 12% of the basic payA member can contribute voluntarily more than statutorily prescribed rate (upto 100% of basic salary) which will be transferred to his PF A/c

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The Employees Provident Fund Act 1952Calculation12% contribution by the employee is directly transferred to his Provident Fund A/c12% 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 employee1.10% Administration charges on total wages are payable by the employer0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and payable by the employer towards EDLI fund0.01% EDLI Administration charges calculated on total EDLI slab wages are payable by the employer*

The Employees Provident Fund Act 1952BenefitsEmployees 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 retirementPF amount of the deceased member is payable to nominees / legal heirsImmediate income tax exemption under Sec 80C of IT ActEqual contribution by the employerInterest 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 applicableTotally tax free returns *

The Employees Provident Fund Act 1952Interest 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 / AprilThe present rate of interest is 8.5%

NominationThe member can nominate other person / persons to receive the Fund amount in the event of his deathThe nomination details provided by the members are maintained at the Regional Provident Fund Office for use in the event of death of the member*

The Employees Provident Fund Act 1952Annual Statement of AccountAfter 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*

The Employees Provident Fund Act 1952Full Settlement PF A/c settled immediately under the circumstances;Retirement after 58 yearsRetirement on account of permanent incapacity Termination of service on retrenchmentVoluntary Retirement Scheme (VRS)Permanent migration from India to settle abroad / taking employmentFor 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 Employees Provident Fund Act 1952Advances / WithdrawalsPurchase 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 etcMarriage of self / son / daughter / sister / brotherEducation of son / daughter Abnormal conditions like natural calamitiesPhysically handicapped member for purchasing an equipment to minimize the hardship due to handicap*

The Employees Provident Fund Act 1952*Employer Role & Responsibility

The Employees Provident Fund Act 1952Monthly 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 monthProvide 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)*

The Employees Provident Fund Act 1952Annual 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

Penalty1237% interest is payable for the delayed period in remitting contributions/ administrative charges depending upon the delayed period

ExemptionEmployer 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*

The Employees Provident Fund Act 1952*Employee Role & Responsibility

The Employees Provident Fund Act 1952Provide details of self & nominees (Form-2) for PF & Pension Scheme at the time of joining the establishmentIn case of already having PF A/c, apply for transfer of previous A/c to the present A/cIf 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 wagesUnderstand that the employer is not liable to pay any contribution on voluntary PFPeriodically verify the details maintained by the employerDon't allow employer to deduct his share of contribution/ administrative charges payable by him from the wagesUnderstand that Employees' Provident Fund Organization does not have any agent / middlemen*

The Employees Pension Scheme 1995*Employees Pension Scheme 1995

The Employees Pension Scheme 1995IntroductionTo 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

ApplicationScheme is compulsory for all the existing members who become members of the Employees Provident Fund Scheme

EligibleMonthly pension to employees on retirementWidows on death of the memberChildren of the member below 25 years age Monthly pension to members upon permanent total disablement during service*

The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)*The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)

The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)ApplicationEDLI scheme is compulsory for all the existing members who become members of the PF SchemeLife insurance benefit (death coverage) of the employee is available under this scheme while in service

CalculationEDLI is calculated on EDLI slab Rs. 6500/-0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and transferred to EDLI fund0.01% Administration charges calculated on total EDLI wagesEDLI / administration charges are payable by the employer

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The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)EligiblePerson 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

List of FormsForms For Claiming Benefits UnderPF Scheme

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FormPurpose13 (revised)For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme14Application for financing a life insurance policy out of PF A/c19To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination20In the event of death of member, this form is to be used by a nominee / family member to claim the member's PF accumulation31To be used by PF members to avail advances / withdrawals as provided in the scheme

List of FormsForms For Claiming Benefits UnderPension Scheme

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FormPurpose10 CFor claiming : - Refund of Employer share - Withdrawal benefit - Scheme certificate for retention of membership10 DTo be submitted by the first claimant i.e. - member - widow / widower - nominee

List of FormsForms For Claiming Benefits UnderEDLI Scheme

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FormPurpose5 (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

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