For Employees

For New Entrants:

Enrolment: An employee is eligible for membership from the day he joins the covered establishment.
If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Declare previous employment details, if any, in Form No. 11 to the employer.
On becoming a member of the Schemes file details in Form No. 2 ( family particulars/ nominations) through the employer.
Rate of contribution payable by a member shall be @ 12% of his emoluments.
A member can contribute statutarily over and above the prescribed rate.

For Existing Members:

Enrolment:
Any change in the family status, such as, -

marriage of the member.
additions / deletion in the family.
Legal adoption of the children.
Change of nominee, is to be filed in Form No. 2 through the employer.

In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPFO office, through his employer.
A member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc.

APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952

The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole India except Jammu & Kashmir.

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

· Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.

· Employing 20 or more persons .

· Cinema Theatres employing 5 or more persons.

The Act does not apply to:

The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)

The establishment to which this Act applies shall continue to be governed by this Act , even if the number of employees falls below 20 at a later date. [ 1(5)].

16(1)(b) Establishments under the control of state/central Govt.& employees who are getting benefits in the nature of 16(1) (b) contributory P.F. or old age pension as per rules framed by the Govt.

16(1)(c) Establishment set up under any central, provincial or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules.

Voluntary Coverage

If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment ( voluntary coverage under section 1(4) )

Classes of Industries covered under EPF & MP Act, 1952

	Date of Extension		Industries/Class of Establishment
(1 to 6)	1st Nov, 1952	1	Cement
		2	Cigarettes
		3	Electrical, Mechanical or General Engineering Products
		4	Iron and Steel
		5	Paper
		6	Textiles (made wholly or in Part of Cotton or wool or jute or silk whether natural or artificial)
		6A	Jute
(7-19)	31st July,1956	7	Edible Oils and Fats
		8	Sugar
		9	Rubber and rubber products
		10	Electricity including generation, transmission and distribution thereof.
		11	Tea (except in the state of Assam where the Govt. of Assam have instituted a Separate Provident Fund Scheme for the industry including plantations)
		12	Printing (other than printing industry relating to newspaper establishments as defined in the Working Journalists (conditions of Service and Misc. Provisions Act1955)) including the process of composing types for printing, printing by letter press, lithography, photogravure or similar process or book binding
		13	Stone-ware pipes
		14	Sanitary Wares
		15	Electrical porcelain Insulators of high and low tension
		16	Refractories
		17	Tiles
		18	Matches
		19	Glass
			Note: Till the 31st March 1962 the Scheme was not applicable to the following:
		(i)	Match factories having annual Production of five lakhs/gross boxes of matches or less.
		(ii)	Such glass factories other than sheet glass shell factories as have an installed capacity of 600 tones per month or less.
(20-23)	30th Sept., 1956	20	Heavy and Fine chemicals including:
		(i)	Fertilizer
		(ii)	Turpentine
		(iii)	Resin
		(iv)	Medical and pharmaceuticals preparations
		(v)	Toilet Preparations
		(vi)	Soaps
		(vii)	Inks
		(viii)	Intermediates dyes colour lacs and toners
		(ix)	Fatty Acids
		(x)	Oxygen acetylene and Carbon Di-Oxide gases.
			(The Act was actually enforced in the industry with effect from 31.7.57)
		21	Indigo
		22	Lac including Shellac
		23	Non-edible vegetables and animal oils and fats
	31st Dec., 1956	24	Newspaper establishments.
	31st Jan.,1957	25	Mineral Oil Refining
(26 to 30A)	30th April,1957	26	Tea plantations (Other than the tea plantations in the State of Assam
		27	Coffee Plantations
		28	Rubber plantations
		29	Cardamom plantations
		30	Pepper plantations
		30A	Mixed plantations
(31-37)	30th Nov.,1957	31	Iron Ore Mines
		32	Manganese Mines
		33	Limestone Mines
		34	Gold Mines
		35	Industrial and Power Alcohol
		36	Asbestos Cement Sheets
	Limestone Mines	37	Coffee curing establishments
	30th April,1958	38	Biscuit making industry (including composite units making biscuit and Products such as bread, confectionery and milk and milk powder)
	30th April,1959	39	Road Motor Transport establishments
(40 & 41)	31st May,1960	40	Mica Industry
		41	Mica Mines
(42 and 43)	30th June,1960	42	Plywood
		43	Automobile repairing and servicing
	30th Nov. 1960	44	Cane farms owned by sugar factories
(45-47)	31st Dec.1960	45	Rice Milling
		46	Dal Milling
		47	Flour Milling
	31st May,1961	48	Starch
(49-53)	30th June,1961	49	Hotels
		50	Restaurants
		51	Establishments engaged in the Storage or transport or distribution of petroleum or Natural gas or products of either petroleum or natural gas.
		52	Petroleum or natural gas Explorations, prospecting drilling or production.
		53	Petroleum or natural gas refining
(54-58)	31st July,1961	54	Cinemas (including Preview theaters)
		55	Film Production
		56	Film Studios
		57	Distribution concerns dealing with exposed films
		58	Film Processing Laboratories
	31st August,1961	59	Leather and Leather products Industries/Classes of Establishments
(60 and 61)	30th Nov.,1961	60	Stoneware Jars
		61	Crockery
	31st December, 1961	62	Every cane farm owned by the owner or occupier of a sugar factory or cultivated by such owner or occupier or any person on his behalf.
	30th April,1962	63	Every Trading and commercial establishments engaged in the Purchase, sale or storage of any good including establishment of exporter, importer advertiser, commission agents and brokers and commodity and stock exchanges, but not including banks or warehouses established under any Central or State Act.
	30th June,1962	64	Fruit and vegetable preservation
	30th Sept.,1962	65	Cashew nuts
(66 to 70)	31st Oct.,1962	66	Establishments engaged in the processing or treatment of wood including manufacture of hardboard chipboard, jute or textile wooden accessories, cork products, wooden furnitures, wooden sports goods, cane or bamboo products, wooden battery separators.
		67	Saw mills
		68	Wood seasoning kilns
		69	Wood preservation plants
		70	Wood workshop
	31st Dec.,1962	71	Bauxite Mines
	31st March,1963	72	Confectionery
(73 to77)	30th April 1963	73	Laundry and Laundry services
		74	Buttons
		75	Brushes
		76	Plastic and plastic products
		77	Stationery products
	31st May,1963	78	Theaters where dramatic performance or other forms of entertainments are held and where payment is required to be made for admission as audience or spectators.
(79 and 80)	31st May,1963	79	Societies, clubs or associations which provide board or lodging or both facility for amusement or any other service to any of their member or to any of their guest on payments.
		80	Companies, societies, associations, clubs or troupes which give any exhibition or acrobatic or other performance or both, in any arena circular or otherwise or perform or permit any other form of entertainment in any place, other than a theater, and require payments for admission into such exhibition or entertainment as spectators or audience.
(81 and 82)	31st August,1963	81	Canteens
		82	Aerated water, soft drinks or carbonated water w.e.f. 31st Oct.
	31st Oct.,1963	83	Distilling and rectifying of spirits (not falling under industrial and power alcohol) and blending of spirits
(84 and 85)	31st Jan.,1964	84	Paint and Varnish
		85	Bone crushing
(86 and 87)	30th June,1964	86	Pickers
		87	China Clay Mines
(88 to 93)	31st Oct.,1964	88	Attorneys as defined in the Advocates Act, 1961 (25 of 1961)
		89	Chartered or registered Accountants as defined in the Chartered Accountants Act, 1949. (38 of 1949)
		90	Cost and Works Accountants within the meaning of the cost and Works Accountants Act, 1959 (23 of 1959)
		91	Engineers and Engineering Contractors not being exclusively engaged in building and construction industry.
		92	Architects
		93	Medical practitioners and Medical specialists
	31st Dec., 1964	94	Milk and milk products

(95 to 97)	31st Jan., 1965	95	Travel agencies engaged in:
		(i)	Booking of international air and sea passengers and other travel arrangements and
		(ii)	Booking of internal air and mail passengers and other travel
		(iii)	Forwarding and clearing of cargo from and to overseas and within India
		96	Forwarding agencies engaged in the collecting, packing, forwarding or delivery of any goods including cargo; loading break bulk service and foreign freight service.
		97	Non-ferrous metals and alloys in the form of ingots
	31st March,1965	98	Bread
	30th June,1965	99	Steaming, redrying, handling, sorting, grading or packing of tobacco leaf.
	31st July,1965	100	Agarbatee (including dhoop and dhoopbatee)
	31st August,1965	101	Magnesite Mines
	30th Sept.,1965	102	Coir (excluding the spinning sector)
	31st Dec.,1965	103	Stone quarries producing roof and floor slabs, dimension stones, monumental stones and mosaic chips stones and mosaic chips.
	31st Jan.,1966	104	Banks other than the nationalized banks established under any Central or State Act;
	30th June,1966	105	Tobacco industry that is to say any industry engaged in the manufacture of Cigars, Zarda, Snuff, Quivam and Guraku from Tobacco.
	31st July,1966	106	Paper Products
	30th Sept.,1966	107	Licensed salt
	30th April,1967	108	Linoleum
	(108 and 109)	109	Indoleum
	31st July,1967	110	Explosives
	31st August,1967	111	Jute bailing or pressing
	31st October,1967	112	Fireworks and percussion cap work
	30th Nov.,1967	113	Tent making
(114 to 120)	31st August,1968	114	Barites Mines
		115	Dolomite Mines
		116	Fireclay Mines
		117	Gypsum Mines
		118	Kyanite Mines
		119	Siliminite Mines
		120	Steatite Mines
	31st Dec.,1968	121	Cinchona Plantations
	30th April,1969	122	Ferro Manganese
(123 and 124)	30th June,1969	123	Ice or ice-cream.
		124	Diamond Mines
	31st Jan.,1970	125	General insurance business
	31st March ,1971	126	Establishments rendering expert service such as supplying of personnel, advice on domestic or departmental enquiries, special service in rectifying pilferage thefts and pay roll irregularities to factories and establishments on certain terms and conditions as may be agreed upon between the establishments and establishments rendering expert service.
	30th Nov.,1971	127	Factories engaged in winding of thread and yarn reeling
	31st March,1972	128	Railway booking Agencies run by Contractors or other private
	30th Sept.,1972	129	Cotton ginning, bailing and pressing
	31st March,1973	130	Every mess, not being a military mess
	31st May,1973	131	Katha making
	31st August 1973	132	Establishments known as hospitals run by any individual association or institution.
	30th April, 1974	133	Beer manufacturing
	30th Sept., 1974	134	Sorting, cleaning and testing of cotton waste.
(135 and 136)	30th Nov.,1974	135	Societies, Clubs and associations which render service to their members, without charging any fees over and above the subscription fee or membership fee.
		136	Garments making factories
(137 to 140)	31st Dec.,1974	137	Agricultural farms,
		138	Fruit orchards
		139	Botanical gardens
		140	Zoological gardens.
	30th June 1975	141	Soapstone mines and establishments engaged in the grinding of soapstone
(142 to 154)	31st July, 1976	142	Apatite Mines
		143	Asbestos Mines
		144	Calcite Mines
		145	Ball-clay Mines
		146	Corundum Mines
		147	Emerald Mines
		148	Feldspar Mines
		149	Silica (sand mines)
		150	Quartz Mines
		151	Ochre Mines
		152	Chromite Mines
		153	Graphite Mines
		154	Flourite Mines
(155 to 157)	28th Jan.,1977	155	Establishments which are factories engaged in the manufacture of glue and gelatine.
		156	Stone quarries producing stone chips, stone sets, stone boulders and ballasts.
		157	Establishments engaged in Fish processing and non-vegetable food preservation industry including bacom factories and pork processing plants.
	31st May,1977	158	Establishments engaged in manufacture of beedi.
	31st Dec.,1978	159	Financing establishments other than banks not being the Unit Trust of India, the Agriculture Refinance Corporation, Industrial Development Bank of India, the Industrial Finance Corporation of India, the State Finance Corporation
	6th Jan.,1979	160	Lignite Mines
	31st July,1979	161	Ferro Chrome
(162 to 164)	31st May,1980	162	Diamond cutting
		163	Quarsite Mines
		164	Inland water transport establishments
		166	Manufacture of Myrobalan extract Powder, Myrobalan extract solid and vegetable tanning blended extract
	30th Nov.,1980	167	Brick
	23rd Nov.,1981	168	Establishments engaged in Stevedoring loading and unloading of ships.
(169 and 170 )	7th Dec.,1981	169	Establishments engaged in poultry farming
		170	Establishments engaged in cattle feed industry.
	6th March,1982	171	(i) Any University
		(ii)	Any college, whether or not affiliated to a University.
		(iii)	Any School, whether or not recognised or aided by the Central or State Government.
		(iv)	Any scientific institution;
		(v)	Any institution in which research in respect of any matter is carried on
		(vi)	Any other institution in which the activity of imparting knowledge or training is systematically carried on
	1st Jan.,1984	172	Industries based on asbestos as principal raw material on voluntary basis.
	1st Oct. 1984	173	Cinema theatres employing five or more workers as specified in section 24 of Cine Workers & Cinema Theatre Workers(Regulation of Employment) Act, 1981
	16th Sept,1989	174	Industries manufacturing Iron ore pellets
	25th Mar.,1992	175	Guar Gum factories
(176 and 177)	1st April,1992	176	Marble mines
		177	Diamond saw mills
(178 to 180)	1st April, 2001 :	178	An establishment engaged in rendering Courier services
		179	An establishment of aircraft or airlines other than the aircraft or airlines owned or controlled by the Central or State Government.
		180	An establishment engaged in rendering cleaning and sweeping services
	10th November,2005	181	Any Estt. engaged in construction, maintenance, operation and commercial activities of Railways; other than Indian Railways and other railway establishments owned and controlled by Central or State Government
	27th July, 2006	182	Any establishment engaged in manufacture, marketing, servicing and usage of a computer [as defined in clause (i) of Sub-section (1) of Section 2 of the Information Technology Act (21 of 2000)] / or deriving any form of output therefrom and related processing services.
(183 to 186)	08th December 2007	183	Companies offering Life Insurance, Annuities etc. other than Life Insuarance Corporation of India.
		184	Private Airports and Joint venture Airports.
		185	Electronic Media companies in Private Sector.

CONTRIBUTION OF EMPLOYERS

Rates of Contribution:

a) The Employees' Provident Fund Scheme

In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.

Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.

Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.

Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

b) The Employees' Pension Scheme

From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 ).

The Central Government also would contribute at the rate of 1.1 / 6% of total wages.

c) Employees' Deposit Linked Insurance Scheme:

No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).

SUBMISSION OF RETURNS

FORM NO.	DESCRIPTION	PURPOSE

2	Nomination form. (Common form for PF & Pension schemes.)	This is given by PF Members and utilised for releasing PF dues to the nominees. It also contains the details of the family members.

11	The Employees' Provident Funds Scheme, 1952 [para 34].	Declaration by a person taking up employment in an establishment in which the Employees' Provident Funds & Family Pension Fund Scheme is in force.
Pension
F9	The Employees' Pension Scheme 1995[para 24] .	Declaration by a person taking up employment in an establishment in which the Employees' Pension Scheme is in force.

Eligibility to Membership:

a) Employees' Provident Fund Scheme:

1. Every employee (including part-time workers and those employed by or through contractors) shall be entitled to become a member of the Scheme from the date of joining the factory or the other establishment. (Para 26)

2. Every excluded employee shall be entitled to become a member from the date he ceased to be such employee.

3. Every member of an exempted Provident Fund on joining establishment to which the Scheme applies.

4. Any employee who is not otherwise eligible to become member of the Scheme, on request by him and his employer.

5. Every newspaper employee other than an excluded employee shall be entitled to become member of the Fund after completion of 3 months continuous service or if he has actually worked for 60 days during 3 months or less (There is no wage ceiling in the case of newspaper employee). (Para 80)

6. Every Cine Worker other than an excluded employee shall be entitled to become a member of the Fund if he has worked in not less than three feature films with one or more producers provided his pay at the time of joining the Fund does not exceed Rs. 1600/-P.M or Rs.15,000/- per year. (Para 81)

Note: w.e.f 1-11-90 , an employee is eligible for membership from the very first date of joining a covered establishment.

a) Employees' Pension Scheme:

1. Every employee who became member of the Employees' Provident Fund Scheme on or after 16-11-95. (Employee who is above the age of 58 on the date of joining the Employees' Provident Fund Scheme shall not be enrolled).

2. Every employee who is a member of Employees' Provident Fund Scheme 1952 and who has not opted for erstwhile Employees' family pension scheme, may also become a member if he opts for Employees' Pension Scheme.

3. Every employee who was a member of Employees' Provident Fund Scheme and has left service between 1-4-93 and 15-11-95 can also join the Employees' Pension Scheme by submission of option.

Note: The Employees' Pension Scheme membership will cease from the date the member attains 58 years of age . However, he will continue to be a member of Employees' Provident Fund till he leaves the service and withdraws the Provident Fund accumulations.

c) Employees' Deposit Linked Insurance Scheme:

Every employee who become member of the Employees' Provident fund Scheme/exempted Provident Fund Scheme.

Administrative Charges

a) Employees' Provident Fund Scheme:
1.10% of total wages on which Provident Fund is recovered subject to a minimum of Rs. 5/- shall be payable by the employer every month . Prior to 1.8.98, w.e.f. 1.8.98 .65% of total wages

b) Employees' Pension Scheme Scheme:
No administrative charges are payable by the employer .The entire cost of administration is met by Central Government .

c) Employees' Deposit Linked Insurance Scheme:
0.01% of the total on which the Employees' Deposit Linked Insurance contributions recovered subject to a minimum of Rs. 2/- per month .

Inspection Charges

a) Employees' Provident Fund Scheme:
0.18% of the total wages on which Provident Fund is recovered .

b) Employees' Pension Scheme Scheme:
Nil .

c) Employees' Deposit Linked Insurance Scheme:
0.005% of the total wages of the employees who are entitled to become members of the Employees' Deposit Linked Insurance Scheme subject to a minimum of Re. 1/-

Duties of Employer

a) Employees' Provident Fund Scheme (Para 36)and (Para 36A):

1. Enrol the eligible employees as Employees' Provident Fund subscriber from the right date.

2. Send initial returns in Form 5A , F9(Revised) , accompanied by F2(Revised), monthly returns in F5, accompanied by F2, F10, F12A accompanied by challans and annual return in F3A accompanied by F6A.

3. To maintain the inspection note book for an inspector to record his observation.

4. Maintain such accounts in relation to the amounts contributed to the fund andby his employees.

5. To comply with all the directives issued by the Central Board for proper implementation of the scheme.

Pay to the Fund within 15 days of the close of the month both the shares of contribution and administrative charges or inspection charges .

b) Employees' Pension Scheme Scheme (Para 20 EPS '95):
There is no need to furnish a separate return by the employers.
Pay to the Fund within 15 days of the month Pension Fund contributions.

c) Employees' Deposit Linked Insurance Scheme (Para 10):
There is no need to furnish a separate return by the employers .
Pay to the Fund within 15 days of the close of the month both the contributions and Administrative charges or Inspection charges .

DO'S FOR A MEMBER:

While joining an establishment, furnish details of previous employment if any, with previous Provident Fund a/c number and scheme certificate.
In case of existing Provident Fund/ Pension a/c, apply for transfer of previous a/c number to the present a/c number.
Ensure that employee furnishes form with details of previous Provident Fund a/c no. to Employees' Provident Fund Organisation.
Execute form-2, in details of self, nominee for Provident Fund and pension and details of family and see that it is forwarded to Employees' Provident Fund Organisation by the employer.
Ensure that particulars furnished are correct in all respects.
Ensure that enrolment to Employees' Provident Fund/ Employees' Pension Scheme is done immediately on joining the establishment.
Provident Fund is deducted at statutory rate from the total wages i.e. basic, D.A. and retaining allowance if any.
If desirous of enhancing rate of contribution, inform the desire with the higher rate opted for to Employees' Provident Fund Organisation through employer and allow employer to deduct at enhanced rate from the wages.
If the wages drawn is more than Rs. 6500/-, intimate your desire to contribute on the whole amount to Employees' Provident Fund Organisation through employer. Employer can also contribute on the whole amount drawn as wages under intimation to Employees' Provident Fund Organisation.
Check up periodically with the employer that contribution and other charges are paid to Employees' Provident Fund Organisation and ensure it's correctness by verifying the form-3A (contribution card) maintained by the employer.

DON'TS FOR A MEMBER:

Don't give false clarification and incorrect particulars to Employer and Employees Provident Fund Organisation.
Don't fall victim to middlemen/ agents. Employees' Provident Fund Organization does not have any agent.
Don't allow Employer to deduct his own share of contribution or administrative charges payable by him from the wages.
Don't be a party to misclassified allowances, with a view to avoid payment of Provident Fund

SPECIFIC PROBLEMS OF EXEMPTED ESTABLISHMENTS

A few establishments are not submitting the prescribed monthly returns.
Quite a few major employers are delaying transfer of fund to the Board of Trustees, thus violating the conditions for grant of exemption.
Board of Trustees is not reconstituted in time.
Investment is not being made by many of the trustees on the plea that huge amounts are sanctioned towards NR loans, House Building and that State/Central Government securities are not available.
Audit Reports of the Provident Fund Trust are due.
Accounts slips are being issued by most of the trustees even without audit of accounts.
SGL account with P.D.O of R.B.I is generally not opened by many Establishments.
The annual returns under Employees' Pension Scheme 1995 (Form No. 7 and 8) which is due on 30th April every year are not submitted in time.
Provident Fund Advance claims account not settled in time.
Details of Board of Trustees are not available on closure/sick/defaulting units.
Statutory rate of interest not paid by several establishments.
Mis-utilisation of fund by Board of Trustees.
Amendment made in the Employees' Provident Fund Act and Scheme by notifications/ordinance etc. are not being incorporated /implemented in the Provident Fund rules by the exempted establishments.

EXEMPTION : PROVISIONS OF ACT / SCHEMES

Types of Exemption

An establishment covered under the Employees' Provident Fund & Miscellaneous Provisions Act 1952 is required to comply with the statutory provisions of the Act and also the provisions of the Schemes framed under the Act namely Employees' Provident Fund Scheme, 1952, Employees' Pension Scheme Scheme, 1995 and Employees' Deposit Linked Insurance Schemes, 1976.

However, the Act provides for grant of exemption from the operation of the Act and also exemption from the operation of the Schemes framed under the Act. Thus, the types of exemptions provided under the Act may be broadly classified as under:

a. Exemption from the Act ( Including the Schemes ), under Section -16 (2) of the Act.

b. Exemption from the operation of the Scheme(s) viz. Employees' Provident Fund Scheme / Employees' Pension Scheme /Employees' Deposit Linked Insurance Schemes.

(a) Exemption from the Act ( Including the Schemes ):

This type of Exemption is allowed under Section 16(2) of the Act by the Central Government. Exemption from the Act is allowed only to a class of establishments. It is granted considering the financial or other circumstances of the class of establishments. This exemption can be given prospectively or retrospectively. It is allowed for a specified period only. The classes of establishments for which this type of exemption currently in force are:

Establishments registered under the Societies Registration Act, 1860, run mainly on grants-in-aid received from the Central Government or the State Government. Establishments which are employing only ex-servicemen who are in receipt of pension benefits as admissible under the trust rules for a period of 5 years w.e.f. 18-02-2000. (Notification dated on 5.4.2000)
Voluntary organisations engaged in leprosy eradication programmes.

(b) Exemption from the operation of the Scheme(s) viz. Employees' Provident Fund Scheme / Employees' Pension Scheme /Employees' Deposit Linked Insurance Schemes:
In this type of exemption, it is only an exemption from the operation of a specified scheme and not from the Act. Apart from granting exemption to an establishment from the operation of a particular scheme, the Act also provides for grant of exemption to an individual employee and also to a class of employees. Thus, exemption from the operation of the Scheme is granted:

To an establishment as a whole.
To an individual employee ( under the Employees' Provident Fund & Employees' Deposit Linked Insurance Scheme only )
To a class of employees.

Issue of Relaxation order under the Employees' Provident Fund & Employees' Deposit Linked Insurance Schemes :

Before granting exemption to an establishment the application of the establishment and also the rules of the Fund are required to be scrutinised for considering the grant of exemption. As it may take some time to process the application, the Regional Provident Fund Commissioner / Central Provident Fund Commissioner as the case may be, may issue a relaxation order to the establishment specifying that the establishment may not, pending grant of exemption:

a. Submit the returns required to be submitted under the Scheme.

b. Remit the dues to the Fund

c. Transfer the accumulations from the existing Fund to the C.B.T., Employees' Provident Fund.

The Regional Provident Fund Commissioner / Central Provident Fund Commissioner may also impose certain other conditions on maintenance of accounts, enrolment of members, Investment of monies, payment of inspection charges and submission of returns etc., in the Relaxation Order. For all practical purposes the establishment under Relaxation Order shall be treated on par with the establishment granted exemption. The Relaxation Order is issued under para 28(7) of the Employees' Deposit Linked Insurance Scheme.

Exemption from the operation of Employees' Provident Fund Scheme , 1952:

Exemption from the operation of Employees' Provident Funds to an establishment as a whole, is granted either under Section 17(1)(a) or under Section 17 (1)(b) of the Act.

Exemption under Section 17 (1)(a):
The grant of exemption to an establishment under Section 17 (1)(a) is considered where the rates of contribution are not less favourable then the statutory rates provided in Section 6 of the Act and the employees are also in enjoyment of other PF benefits which are also on the whole not less favourable than the benefits provided under the Act / Scheme. The authority to grant this exemption is the 'Appropriate Government', as defined in Section 2(a) of the Act ( Central / State Government, as the case may be ) and notified in Gazette.

Exemption under Section 17(1)(b):
Exemption under Section 17 (1)(b) is granted where the employees in establishment are in enjoyment of benefits in the nature of Provident Fund, Pension or gratuity which are separately or jointly on the whole not less favourable than the benefits provided under the Act / Scheme. It is granted by the 'Appropriate Government ', through a notification in the gazette.

Payment of Inspection charges :
The establishment to which Relaxation Order is issued / exemption is granted is required to pay Inspection charges @ 0.18% of total wages on which Provident Fund is recovered, to the Regional Provident Fund Commissioner concerned by deposit in cash / local cheque in S.B.I. to the credit in A/C No. 2 of the Employees' Provident Fund, through prescribed challan.

Exemption of an Employee : (Employees' Provident Fund Scheme ,52 )

Section 17 (2) read with para-27 of the Employees' Provident Fund Scheme provides for exemption from the operation of all or any of the provisions of the scheme to an individual employee. It is granted by the Regional Provident Fund Commissioner on the receipt of application in Form-1 from the employee. The exemption is granted where an employee is entitled to benefits in the nature of Provident Fund, gratuity or old age pension and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and Scheme.

The re-election is permitted only once on each account.

Exemption of a Class of Employees : ( Employees' Provident Fund Scheme ,52 )

Section 17 (2) read with para-27A of the Employees' Provident Fund Scheme provides for grant of exemption from the operation of all or any of the provisions of the scheme to a class of employees. It is granted by the appropriate Government on the receipt of application from the employer. The exemption is granted where employees are entitled to benefits in the nature of Provident Fund, gratuity or old age pension and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and Scheme.

Wherever the exemption to a class of employees is granted, the employer is required to submit a monthly return to the Regional Provident Fund Commissioner in the prescribed Performa. The due date for submission of this return is 25th of the month following that to which it relates. The employer is required to pay Inspection Charges @ 0.18% on wages of employees exempted and invest the Provident Fund monies in accordance with the pattern of investment prescribed by the Central Government. The class of employee may again be permitted to join the statutory fund. The re-election is permitted only once on each account.

Exemption- Provision of Act / Scheme-At a glance

S.No.	Nature of Exemption	Granted under Act/Scheme	Authority to grant exemption	Authority to issue Relaxation Order	Remarks
1.	Exemption from the Act	Section 16(2) of the Act	Central Government	N.A.	Exemption to a class of Establishment only for a specified period.
2.	Exemption from the operation of Employees' Provident Fund Scheme'52	Section 17(1)(a) or 17(1)(b)	Appropriate Government	Regional Provident Fund Commissioner. (para79)	Exemption to an Establishment as a whole.
3.	- Do -	Section 17(2) read with para 27-A of Employees' Provident Fund Scheme	Appropriate Government	Regional Provident Fund Commissioner. (para 79)	To a class of employees.
4.	- Do -	Section 17(2) read with para 27 of Employees' Provident Fund Scheme	Regional Provident Fund Commissioner		To an individual employee.
5.	Exemption from the operation of the Employees' Pension Scheme '95	Section 17 (1C)	Appropriate Government		To an Establishment as a whole.
6.	- Do -	Section 17 (1C)	Appropriate Government		To a class of Establishment
7.	Exemption from the operation of Employees' Deposit Linked Insurance Scheme '76	Section 17 (2-A)	Central Provident Fund Commissioner	Regional Provident Fund Commissioner. (para28(7))	To an Establishment as a whole
8.	- Do -	Section 17 (2B) read with para28(4)	Central Provident Fund Commissioner	- Do -	To a class of employees.
9.	- Do -	Section 17(2B) read with para28(1)	Regional Provident Fund Commissioner	-	To an individual employee.

Exemption from Employees' Family Pension Scheme '95

Section 17 (1C) of an Act provides for grant of exemption from the operation of Employees' Pension Scheme, 1995 . It is granted by the Appropriate Government through a notification in the official Gazette. Exemption may be granted to an establishment as a whole or to a class of establishments . The grant of exemption is subject to the conditions specified by the Appropriate Government . The exemption is granted where the establishment or the class of establishments are in enjoyment of benefits in a nature of pensionary benefits which are at par or, are more favourable then the benefits provided under this Scheme.

Exemption from the Employees' Deposit Linked Insurance Scheme '76 :

Section 17 (2A) of an Act provides for grant of exemption from the operation of Employees' Deposit Linked Insurance Scheme ,1976 . It is granted to an establishment , where the employees are without making any separate contribution or payment of premium , are in enjoyment of benefits in the nature of Life Insurance whether linked to their deposits in Provident Fund or not and such benefits are more favourable than the benefits admissible under the Insurance Scheme . It is granted by the Central Provident Fund Commissioner by notification in the official gazette and is subject to conditions that may be specified in the notification . It is granted either prospectively or retrospectively .

Pending grant of exemption to an establishment relaxation order may be issued under para-28(7) of the Employees' Deposit Linked Insurance Scheme,1976 by a Regional Provident Fund Commissioner .

An establishment exempted from the operation of the Employees' Deposit Linked Insurance Scheme ,1976 is required to submit a monthly return to the Regional Provident Fund Commissioner .

Para-28(4) of the Scheme provides for grant of exemption by the Central Provident Fund Commissioner to any class of employees .

Under Section 17 (2B) read with Para-28(1) of the Employees' Deposit Linked Insurance Scheme,1976, the Regional Provident Fund Commissioner may grant exemption from the operation of any or all of the provisions of the Employee Deposit Linked Insurance Scheme to an employee.

The establishment shall pay inspection charges at the rate of 0.005% of the basic wages and Dearness Allowance subject to a minimum of Re.1/- per month .