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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of the fund, has withdrawn the full amountof his contribution in the fund (a) onretirement from service after attaining theage of 55 years or (b) before migrationfrom India for permanent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 :
(a) 8.33% on Basic + DA
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 :
(a) 0.5% on Basic + DA
(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
RPFC officeBefore 15th ofevery month
10Return of Employees Leaving3
RPFC officeBefore 15th ofevery month
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.
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