Employer

Coverage

Contributions:

Administrative Charges:

Inspection Charges:

Interest Liability:

Damages:-

Duties of Employer

Exemptions under the Schemes

Provident Fund

Pension Scheme

EDLI  Scheme

 

Membership  

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.

b) 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/-

 

FOLLOWING DOCUMENTS ARE REQUIRED FOR DECIDING FINAL DATE OF COVERAGE

 

I.

MANUFACTURING UNIT

1

Copy of 1st partnership deed / memoranda and article of association

2

Extracts from 1st Year ledger / cashbooks for :

1st purchase of raw material

1st salary / wages paid

1st salaray / wages paid

1st sale

1st rent paid

3

Copy of 1st Sales tax assessment order

4

Copy of 1st Income Tax assessment order

5

Copy of 1st years balance sheet

6

Salary/wages registers, vouchers, books and balance sheets from date of start till date of provisional coverage done earlier

7

C.S.T & B.S.T. Certificate

8

Books of accounts ( Ledger, cash books etc.) since beginning.

9

Balance sheet / P&L account (in case of Limited company Annual Report since beginning.)

10

Shops & Establishment Registration Certificate/Factory Licence

11

Partnership deed in case partnership firm) and Memorandum of Association & Articles (In case of Limited Co.)

12

Salary/Wage register and Attendance Register since beginning.

13

Month wise strength of numbers of employees since beginning

14

List of Directors/Partners/ owners along with their residential addresses

15

Name of the Bankers, Address of the Bank and and name of the person responsible for financial affairs.

II.

RESTAURANT/RESIDENTIAL HOTEL

1

All the above documents except Sr. No. 1

2

Invitation card or paper-cutting of the advertisement regarding the inauguration of the restaurant/ hotel.

3

Eating House Licence from the public health department

4

Licence for public entertainment in the premises issued by the police department.

5

1st sale bill (either restaurant or room sale bill whichever is earlier).

6

Room sale register.

7

Excise Certificate.

8

Bar permit licence (if any)

 

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:

 

 

 

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 ).

 

TO BE OBSERVED BY THE ESTABLISHMENT GRANTED EXEMPTION UNDER SEC.17(1) (a) OF THE EMPLOYEES' PROVIDENT FUND & MISC. PROVISIONS ACT 1952  

  1. The employer in relation to the said establishment shall provide for such facilitation for inspection and pay such inspection charges as the Central Govt. may from time to time direct under clause (a) of such section 17 of the said Act within 15 days from the close of every month.
  2. The rate of contribution payable under the provident fund rules of the establishment shall at no time be lower than those payable under the said Act in respect of the un-exempted establishments and the said scheme framed there under.
  3. In the matter of advances the scheme of the exempted establishment shall not be less favourable than the Employees' Provident Fund Scheme, 1952.
  4. Any amendment to the said scheme which is more beneficial to the employees than the exiting rules of the establishment shall be applicable to them automatically. No amendment of the rules of provident fund of the said establishment shall be made without the previous approval of the Regional Provident Fund Commissioner and where any amendment is likely to effect adversely the interest of the employees of the said establishment the Regional Provident Fund Commissioner shall give a reasonable opportunity to the employees to explain their points of view.
  5. All employees (as defined in section 2(f) of the said Act ) who would have been eligible to become members of the Provident Fund had the establishment not been granted exemption shall be enrolled as members.
  6. Where an employee who is already a member of the Employees' Provident Fund (statutory) or a provident fund of any other exempted establishment is employed in his establishment the employer shall immediately enrol him as a member of the fund and arrange to have the accumulation in the provident account of such employee with his previous employer transferred and credited to his account.
  7. The employer shall establish a Board of Trustees for the management of the Provident Fund according to such directions as may be given by the Central Provident Fund Commissioner or by the Central Government as the case may be from time to time.
  8. The Provident Fund shall vest in the Board of Trustees, who will be responsible for and accountable to the Employees Provident Fund Organisation for proper accounts of the receipt in the and payments from the provident fund and the balance in their custody.
  9. The Board of Trustees shall meet at least once in every three months and shall function in accordance with the guidelines that may be issued from time to time by the Central Government / Central Provident Fund Commissioner or an officer authorised by him.
  10. The accounts of the provident fund maintained by Board of Trustees shall be subject to audit by a qualified independent Chartered Accountant annually. Where considered necessary, the Central Provident Fund Commissioner shall have the right to have the accounts re-audited by any other qualified auditors and the expenses so incurred shall be borne by the employer.
  11. A copy of the Audited annual provident fund accounts together with the audited balance sheet of the establishment for each accounting year shall be submitted to the Regional P.F Commissioner within six months after the close of the financial year. Financial year shall be from the 1st of April to the 31st of March.
  12. The employer shall transfer to the Board of Trustees the contributions payable to the Provident Fund by himself and the employees by the 15th of each month following the month for which the contributions are payable . The employer shall be liable to pay damages to the Board of Trustees for any delay in payment of the contribution in the same manner as an un-exempted establishment is liable under similar circumstances.
  13. The Board of Trustees shall invest the monies in the fund as per directions that may be given by the Government from time to time. The securities shall be obtained in the name of the Board of Trustees and shall be kept in the custody of a scheduled bank under the Credit Control of the Reserve Bank of India.
  14. Failure to make investments as per directions of the Government shall make the Board of Trustees severally and jointly liable to surcharge as may be imposed by the Central Provident Fund Commissioner or his representative.
  15. The Board of Trustees shall maintain a script-wise register and ensure timely realisation of interest.
  16. The Board of Trustees shall maintain detailed accounts to show the contributions credited, withdrawal and interest in respect of each employee.
  17. The Board shall issue an annual statement of accounts to every employee within six months of the close of financial year.
  18. The Board may instead of the annual statement of accounts issue pass books to every employees. These pass books shall remain in the custody of the employees and will be brought up-to-date by the Board on presentation by the employees.
  19. The accounts of each employee shall be credited with interest calculated on the opening balance as on the first day of the accounting year at such rate as may be decided by the Board of Trustees but shall not be lower than the rate declared by the Central Government under para 60 of the said Scheme.
  20. If the Board of Trustees are unable to pay interest as per the rate declared by the Central Government for the reasons that the return on investment is less or for any other reasons then the deficiency shall be made good by the employer.
  21. The employer shall also make good any other loss that may be cause to the Provident Fund due to theft, burglary, defalcation, misappropriation or any other reasons.
  22. The employer as well as the Board of Trustees shall submit such returns to the Regional Provident Fund Commissioner as the Central Government / Central Provident Fund Commissioner may prescribe from time to time.
  23. If the Provident Fund rules of the establishment provide for forfeiture of the employees' contribution in case where an employee ceases to be a member of the fund on the lines of para 69 of the said scheme, the Board of Trustees shall maintain a separate account of the amounts so forfeited and may utilise the same for such purpose as may be determined with the prior approval of the Central Provident Fund Commissioner.
  24. Notwithstanding anything contained in the Provident Fund Rules of the establishment, if on the cessation of any individual from the membership of the fund consequent on retiring from service or on taking up the employment in some other establishment , it is found that the rate of contribution , rate of forfeiture etc. under the P.F Rules of the establishment are less favourable as compared to these under the statutory scheme the difference shall be borne by the employer.
  25. The employer shall bear all expenses of the administration of the Provident Fund including the maintenance of accounts, submission of returns and transfer of accumulations.
  26. The employer shall display on the notice board of the establishment a copy of the rules of the fund as approved by the appropriate authority and as and when amended thereto along with a translation of the salient points thereof in the language of the majority of the employees.
  27.  "The appropriate Government" may lay down any further condition for continued exemption of the establishment.
  28. The employees shall enhance the rate of provident fund contributions appropriately if the rate of provident fund contribution is enhanced under the said Act, so that the benefits under the Provident Fund Scheme of the Establishment shall not become less favourable than the benefits provided under the said Act.
  29. The exemption is liable to be cancelled for violation of any of the above conditions.

 

 

PROVISIONS OF THE EMPLOYEES' PROVIDENT FUND SCHEME 1952 ON SETTLEMENT OF EMPLOYEES' PROVIDENT FUND CLAIMS

 

For reading material refer : 
Employees' Provident Fund Scheme, '52 - para 69 , 70 , 72(1) , 72(2) , 72(3) , 72(3A) , 72(4). 

Forms prescribed for claiming the Provident Fund dues :
By a member :  through Form 19
On death of member by nominee/family member(s)/legal heirs: through Form 20 

SETTLEMENT UNDER PARA 69-TO MEMBER:

THROUGH FORM No.19 

Immediate settlement without waiting period of 2 months 

Settlement only after a waiting
period of two months

69(1)(a) Retirement after attaining 55 years of age.

69(1)(e)(i) transfer of a non retrenched employee from a closed establishment to uncovered establishment.

69(1)(b) Retirement on account of total and permanent incapacity due to bodily or mental infirmity .

69(1)(e)(ii) Transfer of an employee from a covered establishment to an un-covered establishment under the same employer.

69(1)(d) Termination of service on retrenchment.

69(2) Other cases viz. Resignation, Leaving service, etc.

69(1)(dd) Termination on V.R.S

Note: For female members leaving service for the purpose of getting married; waiting period not applicable.

69(1)(c) Migration from India for permanent settlement abroad or taking employment  abroad.

69(1)(e)(iii) Members discharged & retrenchment compensation paid under I.D. Act 1947.  

 

Settlement under para 70:

(Accumulation of a deceased member) through Form No. 20

70(i) If a nomination exists, payment is made to the nominee in accordance with Form 2(R) . (Nomination and Declaration Form).

70(ii) If no nomination subsists, payment is to be made to every member of his family (as defined under para-2(g) of Employees' Provident Fund Scheme 1952) in equal share. For the purpose of this paragraph, a member's posthumous child, if born alive , shall be treated as a surviving child, born before the member's death.
But the following will not be eligible for any share, if other family members are available to receive the accumulations. 

  1. Major sons ,
  2. Major sons of a deceased son ,
  3. Married daughters whose husbands are alive ,
  4. Married daughter of a deceased son whose husbands are alive. 

70(iii) In cases where para 70(i), 70(ii) , does not apply, the payment is to be made to the person who is legally entitled to it, vide para 70(iii). In case there is no nominee and also there is no person entitled to receive the amount, if the amount to the credit of the fund does not exceed Rs. 10,000/-, the Commissioner may pay such amount to the claimant after enquiry and after satisfying the title of the claimant.

When the payment is to be made to a minor, it is payable to : 

  1. The Guardian appointed under Guardian and Wards Act 1890 , failing (a), to
  2. The Guardian appointed by the member as per para 61(4A), failing (a),(b), to
  3. To the natural guardian of the minor, failing (a) (b) (c), to
  4. To the person , considered to be the proper person by the commissioner when the amount not exceeding Rs.20,000/- or the person considered to be the proper person , by the Chairman , C.B.T where the amount exceeds Rs. 20,000/- . Para-72(3)

When the payment is to be made to a lunatic person , it is payable to: 

  1. The Manager appointed for the minor's estate under Indian Lunacy Act ,1912 failing (a),
  2. The natural guardian of the lunatic, failing (a)(b),
  3. To the person considered by the Commissioner as proper person , amount not exceeding Rs.20,000/- or to person considered by Chairman C.B.T as proper person amount exceeding Rs. 20,000/-. Para-72(3A)

Note: Maximum amount payable by money order is Rs.2000/- and beyond that by cheque. If the amount is beyond Rs. 500/-, the M.O. cost will be borne by the claimant.

 

Para 70(A):

If a person entitled to received a share in the Provident Fund accumulations of a deceased member is charged with committing the murder of the member or with abetting the crime, the share payable to such person shall be retained till the case is finalised . If, subsequently he/she is exonerated, the share will be paid to him/her. If such a person is found guilty and convicted, the share will be  paid equally to other person(s) entitled to receive the accumulations.

WITHDRAWALS

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

The purchase of site for construction of house

 

5 Years of membership of the Fund (Minimum balance in member’s a/c should be Rs. 1000/-)
* The purchase should be in favour of member or member &  spouse.

l 24 months wages (Basic & DA)
OR
l Member’s own share of contribution + Company’s share of Contribution with interest thereon

 

No.31

 

A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumberances  and the same is under the title of the member or the spouse (notification dated 25.2.2000) 

The Construction of House  

5 Years of membership of the Fund

(Minimum balance in member’s a/c should be Rs. 1000/-)
* The purchase should be in favour of member or member &  spouse.

l 36 months wages (Basic+DA)
OR
l Members own share of contribution  + Company’s share of contribution with interest thereon

 

No.31

 

A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumberances  and the same is under the title of the member or the spouse (notification dated 25.2.2000)  

The purchase of dwelling flat  

5 Year of membership of the Fund

(Minimum balance in member’s a/c should be Rs. 1000/-)
* The purchase should be in favour of member or member &  spouse.

l 36 months wages (Basic+DA)
OR
l Members own share of contribution  + Company’s share of contribution with interest thereon  

No.31  

A declaration from the member that, dwelling site or dwelling house/flat or the house under construction is free from encumberances and the same is under the title of the member or the spouse (notification dated 25.2.2000)   

Additions, Alterations or improvements to the dwelling house  

5 years from the date of completion of dwelling house

 

12 months basic or members own share of contribution with thereon.  

No.31

 

 

 

 68 BB : REPAYMENT OF LOAN

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Advance from the fund for repayment of loan

10 years membership of the fund & member should have taken loan from Govt. Body

36 month wages (Basic + DA)
OR
Members own share of Contribution + Company’s share of Contribution with interest thereon.

No.31

 

A certificate from the lending authority furnishing the details of loan and outstanding amount.  

68 J : ADVANCE FROM FUND FOR ILLNESS

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Advance from the fund for illness viz. hospitalisation for more than a month, major surgical operation or suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc.

Stay in Hospital at least for a month

6 moths wages (Basic + DA)

No.31

A certificate from the Medical Practitioner for hospitalisation or operation.

68 K : ADVANCE FROM THE FUND FOR MARRIAGE

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

l Advance from the fund for Marriage of self/son/daughter/ sister/brother etc.
l Advance from the fund for education of Son/Daughter

l 7 years membership of the fund & minimum balance in member’s account should be Rs. 1000/-

l 50% of member’s own share of contribution

No.31

Declaration by the member which is attested by the employer.

 

 68L : ADVANCE IN ABNORMAL CONDITIONS

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Grant of advance in abnormal conditions, Natural calamities etc.

l Certificate of damage from appropriate authority.
l State Govt. declaration.

l Rs. 5000/- or 50% of member’s own share of contribution (To apply within 4 months)

No.31

l Certificate from the Appropriate Authority.

68 M : ADVANCE TO MEMBER AFFECTED BY CUT IN THE SUPPLY OF ELECTRICITY

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

Grant of advance to members affected by cut in the supply of electricity

l The advance may be granted only to a member whose total wages for any one month commencing from the month of January 1973 were 3/4th or less than 3/4th of wages for a month

l Wages for a month
OR
l Rs.300/-

No.31

Certificate from State Govt. regarding cut in the supply of electricity.

68 N : GRANT OF ADVANCE TO MEMBERS WHO ARE PHYSICALLY HANDICAPPED

Types of Benefit

Eligibility

Eligible Amount

Form

Documentary Support

To Physically Handicapped member for purchase of an equipment required to minimize the hardship on account of handicap.

Production of medical  certificate from a competent medical practitioner to the effect that he is physically handicapped

Basic wages+ DA for six months
or own share of contribution with interest or cost of equipment which ever is least.

No.31

Certificate from the Medical practitioner to the effect that the member is physically handicaped..

Note: For calculation/ computing the period of membership U/P 68B, 68BB, 68K, total service exclusive  of periods of break under the same employer before the scheme is applied to him, as well as period of membership of the fund is always included.

 

 

CONDITIONS FOR GRANT OF INSTALLMENT FACILITY TO LIQUIDATE THE OUTSTANDING PF ARREARS

 

This facility is available only for liquidation of arrears under the Employees Provident Fund Act including damages and interest.

  • Maximum installments shall be 36 (monthly installments). However, the number of installments admissible in each case will be decided on individual merits.
  • Except in the case of sick units, the defaulters shall be required to liquidate the employees’ share, before applying for installments.
  • The scheme shall operate from the subsequent month of grant of the facility.
  • A revolving bank guarantee equal to one installment shall be furnished along with the proposal.
  • The proposal shall be submitted to the regional / sub-regional / sub-accounts office controlling compliance of the establishment. Depending on the delegated powers the case shall be processed by the appropriate office.
  • Where the case is to be decided by the Head office, the proposal complete in all respect shall be forwarded by the Regional Provident Fund Commissioner-I alongwith his observations and specific recommendations.
  • RPFC-I shall recommend the installment only where it exceeds the delegated powers or where the period required stretches beyond the calendar year.
  • Only if the RPFC is satisfied about the viability of the scheme, he shall send his recommendation.
  • The number of installments recommended shall be reasonable and relatable to the quantum of default.
  • The establishment shall be required to remit the installment amount positively before 15th of the subsequent month.
  • The establishment shall ensure remittance of the current dues alongwith the installment dues before 15th of the month.
  • There shall be an undertaking regarding payment of damages and interest dues as and when levied.
  • The installment scheme shall be deemed to have been cancelled in case of any default in payment either of installment amount or current dues.
  • Consequent on the cancellation of the installment facility, all coercive steps shall be initiated against the establishment / employer for realizing the outstanding dues without further notice.
  • Even where the default amount is within the powers of the RPFCs a review shall be made by the RPFC-I of the region periodically.

Further details, if any required, can be had from the nearest office of the Employees Provident Fund Organisation.