pf contribution / esi contribution

7/31/2019 PF Contribution / Esi Contribution

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EmployerCoverage Establishments employing 20 or more persons and engaged in any of the 180 indusries / Classes of Businesses specified. Co-operative Societies, employing 50 or more persons & wor ing without the aid f power. Establishments not coverable statutorily can come under the coverage of the Actstatutorily. An establishment continues to be covered under the Act, irrespective of the falin the employment strength. Since the Act applies on its own force to the establishments, the employers arerequired to file the particulars in the specified format for registration and allotment of business number.Financial Obligations:Contributions: Statutory rate of contribution is 12% of emoluments (basic wages, dearness alloance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments. Rate of contribution shall be 10% in the case of the following:Bric , beedi, jute, guar gum factories, coir industry other than spinning sector. Establishments declared as sic underta ings by BIFR. A matching contribution is to be collected from the emoluments of the employees

Out of 12% (or 10% as the case may be) of the employers share of contribution, 8.33% is to be remitted towards pension fund. Employer is also required to pay a contribution of 0.5% of the emoluments towars EDLIS1976.Administrative Charges: An employer is required to pay administrative charges at 1.10% of emoluments toards provident fund charges and 0.01% towards EDLI Scheme 1976. No separate administrative charges for pension schemeInspection Charges: In respect of exempted establishment under P.F. Scheme employer is liable to paonly inspection charges at the rate of 0.18% of emoluments. In the case of establishment exempted from EDLI Scheme, the employer is requird to pay only inspection charges at the rate of 0.005% of emoluments.

Interest Liability: For belated remittances of contributions, administrative / inspection charges iterest at the rate of 12% on such remittances for the period of delay is to be remitted.Damages:- For all the belated remittances of contribution and administration/inspection carges damages are also payable as penalty ranging from 17% to 37% p.a. dependingupon delay.Duties of Employer Enrol all categories of employees including the employees engaged by or throughcontractors and also piece rated, hourly rated employees. Remit the contributions and administrative charges before the 15th of the folloing month.

File the initial returns of Form 9, Form 3(P.S.), form 5A. File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remittinthe dues. Maintain the contribution card in respect of each employee in Form 3A and submithe annual returns in Form 3A and 6A after reconciliation with Challans and form 12A. The employer has to ensure that statutory dues in respect of contractors employes are remitted and returns filed. Employer should attest the form No.2 and the claims forms submitted by the meber/ legal heirs/ nominees.


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Ma e available all relevant records for inspection of visiting officials with de authorisation.Exemptions under the SchemesProvident Fund An individual member getting Provident Fund benefits on par with or better thanstatutory provisions can apply for exemption in Form 1 under para 27. Employers can apply for exemption in respect of a class of employees getting siilar or better benefits than the statutory P.F. Scheme under P. 27A subject tothe conditons governing grant of exemption. The employer can see exemption from P.F. Scheme for the entire establishment f the majority of the employees also consent for exemption, subject to certainconditions governing grant of exemption and certain formalities.Pension Scheme Employer can avail exemption for the establishment as a whole, with the consentof majority of employees, if an alternative pension scheme is formulated by theestablishment with benefits either on par with or superior to the EPS 95 and subject to certification of the viability and long sustenance of the scheme by anindependent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions. There is no provision for exemption of individuals or for class of employees.EDLI Scheme The establishment can get exemption from the EDLI Scheme, if the employees therin are entitled for a benefit in the nature of insurance whether lin ed to theirP.F. deposit or not and without paying any contributions.

For Employees

For New Entrants: Enrolment: An employee is eligible for membership from the day he joins the covred establishment. If the employees emoluments exceed Rs. 6,500/- per month, he has the option toin 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 particu

ars/ 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, -

o marriage of the member.o additions / deletion in the family.o Legal adoption of the children.o 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 shold surrender the same to the concerned EPFO office, through his employer.

A member is entitled to various benefits & facilities such as withdrawals, advaces, pensions, death insurance etc.

APPLICABILITY OF EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT 1952The 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:


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Every establishment which is engaged in any one or more of the industries speciied in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. (List of Industries/Establishments)

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 wor ing without te 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 whoare 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 theemployees 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 maybe applicable to such establishment ( voluntary coverage under section 1(4) )

Classes of Industries covered under EPF & MP Act, 1952Date of Extension Industries/Class of Establishment

(1 to 6) 1st Nov, 1952 1 Cement2 Cigarettes3 Electrical, Mechanical or General Engineering Products4 Iron and Steel5 Paper6 Textiles (made wholly or in Part of Cotton or wool or ju

te or sil whether natural or artificial)

6A Jute(7-19) 31st July,1956 7 Edible Oils and Fats8 Sugar9 Rubber and rubber products10 Electricity including generation, transmission and distr

ibution thereof.11 Tea (except in the state of Assam where the Govt. of Ass

am 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 Wor ing Journalists (conditions of Serviceand Misc. Provisions Act1955)) including the process of composing types for printing, printing by letter press, lithography, photogravure or similar process or

boo binding13 Stone-ware pipes14 Sanitary Wares15 Electrical porcelain Insulators of high and low tension16 Refractories17 Tiles18 Matches19 Glass

Note: Till the 31st March 1962 the Scheme was not applicable to the following:


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(i) Match factories having annual Production of five la hs/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) In s(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 Indigo22 Lac including Shellac23 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 Plantations28 Rubber plantations29 Cardamom plantations30 Pepper plantations30A Mixed plantations

(31-37) 30th Nov.,1957 31 Iron Ore Mines32 Manganese Mines33 Limestone Mines34 Gold Mines35 Industrial and Power Alcohol36 Asbestos Cement Sheets

Limestone Mines 37 Coffee curing establishments30th April,1958 38 Biscuit ma ing industry (including composite uni

ts ma ing biscuit and Products such as bread, confectionery and mil and mil powder)30th April,1959 39 Road Motor Transport establishments

(40 & 41) 31st May,1960 40 Mica Industry41 Mica Mines

(42 and 43) 30th June,1960 42 Plywood43 Automobile repairing and servicing

30th Nov. 1960 44 Cane farms owned by sugar factories(45-47) 31st Dec.1960 45 Rice Milling

46 Dal Milling47 Flour Milling

31st May,1961 48 Starch(49-53) 30th June,1961 49 Hotels

50 Restaurants51 Establishments engaged in the Storage or transport or d

istribution 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 Production56 Film Studios


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57 Distribution concerns dealing with exposed films58 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 Croc ery31st December, 1961 62 Every cane farm owned by the owner or oc

cupier of a sugar factory or cultivated by such owner or occupier or any personon 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 bro ers and commodity and stocexchanges, but not including ban s or warehouses established under any Centralor State Act.

30th June,1962 64 Fruit and vegetable preservation30th Sept.,1962 65 Cashew nuts

(66 to 70) 31st Oct.,1962 66 Establishments engaged in the processingor treatment of wood including manufacture of hardboard chipboard, jute or textile wooden accessories, cor products, wooden furnitures, wooden sports goods, cane or bamboo products, wooden battery separators.

67 Saw mills68 Wood seasoning ilns69 Wood preservation plants70 Wood wor shop

31st Dec.,1962 71 Bauxite Mines31st March,1963 72 Confectionery(73 to77) 30th April 1963 73 Laundry and Laundry services

74 Buttons75 Brushes76 Plastic and plastic products77 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 toany 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 anyplace, 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 drin s 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 Pic ers

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 Wor s Accountants within the meaning of the cost and Wor s Accountants Act, 1959 (23 of 1959)

91 Engineers and Engineering Contractors not being exclusively engaged in building and construction industry.

92 Architects


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93 Medical practitioners and Medical specialists31st Dec., 1964 94 Mil and mil products

(95 to 97) 31st Jan., 1965 95 Travel agencies engaged in:(i) Boo ing of international air and sea passengers and othe

r travel arrangements and(ii) Boo ing of internal air and mail passengers and other tr

avel(iii) Forwarding and clearing of cargo from and to overseas an

d within India96 Forwarding agencies engaged in the collecting, pac ing,

forwarding or delivery of any goods including cargo; loading brea bul serviceand foreign freight service.

97 Non-ferrous metals and alloys in the form of ingots31st March,1965 98 Bread30th June,1965 99 Steaming, redrying, handling, sorting, grading o

r pac ing of tobacco leaf.31st July,1965 100 Agarbatee (including dhoop and dhoopbatee)31st August,1965 101 Magnesite Mines30th Sept.,1965 102 Coir (excluding the spinning sector)31st Dec.,1965 103 Stone quarries producing roof and floor slabs, d

imension stones, monumental stones and mosaic chips stones and mosaic chips.31st Jan.,1966 104 Ban s other than the nationalized ban s establis

hed 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 Gura u from Tobacco.31st July,1966 106 Paper Products30th Sept.,1966 107 Licensed salt30th April,1967 108 Linoleum(108 and 109) 109 Indoleum31st July,1967 110 Explosives31st August,1967 111 Jute bailing or pressing31st October,1967 112 Firewor s and percussion cap wor30th Nov.,1967 113 Tent ma ing

(114 to 120) 31st August,1968 114 Barites Mines115 Dolomite Mines116 Fireclay Mines

117 Gypsum Mines118 Kyanite Mines119 Siliminite Mines120 Steatite Mines

31st Dec.,1968 121 Cinchona Plantations30th 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 business31st 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

reeling31st March,1972 128 Railway boo ing Agencies run by Contractors or o

ther private30th Sept.,1972 129 Cotton ginning, bailing and pressing31st March,1973 130 Every mess, not being a military mess31st May,1973 131 Katha ma ing31st August 1973 132 Establishments nown as hospitals run by

any individual association or institution.


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30th April, 1974 133 Beer manufacturing30th Sept., 1974 134 Sorting, cleaning and testing of cotton

waste.(135 and 136) 30th Nov.,1974 135 Societies, Clubs and associations whichrender service to their members, without charging any fees over and above the subscription fee or membership fee.

136 Garments ma ing factories(137 to 140) 31st Dec.,1974 137 Agricultural farms,

138 Fruit orchards139 Botanical gardens140 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 Mines144 Calcite Mines145 Ball-clay Mines146 Corundum Mines147 Emerald Mines148 Feldspar Mines149 Silica (sand mines)150 Quartz Mines151 Ochre Mines152 Chromite Mines

153 Graphite Mines154 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, stoneboulders and ballasts.

157 Establishments engaged in Fish processing and non-vegetable food preservation industry including bacom factories and por processing plants.

31st May,1977 158 Establishments engaged in manufacture of beedi.31st Dec.,1978 159 Financing establishments other than ban s not be

ing the Unit Trust of India, the Agriculture Refinance Corporation, Industrial Development Ban of India, the Industrial Finance Corporation of India, the State

Finance Corporation6th Jan.,1979 160 Lignite Mines31st July,1979 161 Ferro Chrome

(162 to 164) 31st May,1980 162 Diamond cutting163 Quarsite Mines164 Inland water transport establishments

(165 and 166) 31st Oct.,1980 165 Building and construction166 Manufacture of Myrobalan extract Powder, Myrobalan extra

ct solid and vegetable tanning blended extract30th Nov.,1980 167 Bric23rd Nov.,1981 168 Establishments engaged in Stevedoring loading an

d unloading of ships.(169 and 170 ) 7th Dec.,1981 169 Establishments engaged in poultr

y farming170 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 Ce

ntral or State Government.(iv) Any scientific institution;(v) Any institution in which research in respect of any matt

er is carried on(vi) Any other institution in which the activity of imparting


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nowledge or training is systematically carried on1st Jan.,1984 172 Industries based on asbestos as principa

l raw material on voluntary basis.1st Oct. 1984 173 Cinema theatres employing five o

r more wor ers as specified in section 24 of Cine Wor ers & Cinema Theatre Wor ers(Regulation of Employment) Act, 1981

16th Sept,1989 174 Industries manufacturing Iron ore pellets25th Mar.,1992 175 Guar Gum factories

(176 and 177) 1st April,1992 176 Marble mines177 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 theaircraft 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, mar eting, 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.186 Lodging Houses, Service apartments and condominiums.

CONTRIBUTION OF EMPLOYERSRates of Contribution:

a) The Employees Provident Fund SchemeIn respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared assic ) 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 highercontributions 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 emloyed.

Any sic industrial company as defined in Clause(0) of Sub-Section(1) of Sectio3 of the sic industrial companies ( special provisions ) Act 1985 and which ha

s been declared as such by the Board for Industrial and Financial Reconstruction.

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

Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Bric, (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.b) The Employees Pension SchemeFrom and out of employer s share of Provident Fund contributions 8.33% of the t


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otal 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 Lin ed Insurance Scheme:No amount is recovered from employee s wages . Employer should pay 0.5% of totalwages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).

SUBMISSION OF RETURNSFORM NO. DESCRIPTION PURPOSE2 Nomination form.

(Common form for PF & Pension schemes.) This is given by PF Members andutilised for releasing PF dues to the nominees. It also contains the details ofthe family members.

11 The Employees Provident Funds Scheme, 1952 [para 34]. Declaration by aperson ta ing up employment in an establishment in which the Employees Provident Funds & Family Pension Fund Scheme is in force.

PensionF9 The Employees Pension Scheme 1995[para 24] . Declaration by a personta ing up employment in an establishment in which the Employees Pension Schemeis in force.

SUBMISSION OF RETURNSFORM NO. DESCRIPTION PURPOSE2 Nomination form.

(Common form for PF & Pension schemes.) This is given by PF Members andutilised 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 aperson ta ing up employment in an establishment in which the Employees Provident Funds & Family Pension Fund Scheme is in force.PensionF9 The Employees Pension Scheme 1995[para 24] . Declaration by a personta ing up employment in an establishment in which the Employees Pension Schemeis in force.MembersEligibility to Membership:a) Employees Provident Fund Scheme: Every employee (including part-time wor ers and those employed by or through co

tractors) shall be entitled to become a member of the Scheme from the date of joining the factory or the other establishment. (Para 26) Every excluded employee shall be entitled to become a member from the date he cased to be such employee. Every member of an exempted Provident Fund on joining establishment to which thScheme applies. Any employee who is not otherwise eligible to become member of the Scheme, on rquest by him and his employer. Every newspaper employee other than an excluded employee shall be entitled to bcome member of the Fund after completion of 3 months continuous service or if h


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e has actually wor ed for 60 days during 3 months or less (There is no wage ceiling in the case of newspaper employee). (Para 80) Every Cine Wor er other than an excluded employee shall be entitled to become amember of the Fund if he has wor ed 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: Every employee who became member of the Employees Provident Fund Scheme on or fter 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). Every employee who is a member of Employees Provident Fund Scheme 1952 and whohas not opted for erstwhile Employees family pension scheme, may also become amember if he opts for Employees Pension Scheme. Every employee who was a member of Employees Provident Fund Scheme and has lefservice between 1-4-93 and 15-11-95 can also join the Employees Pension Schemeby 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 Lin ed Insurance Scheme:Every employee who become member of the Employees Provident fund Scheme/exempte

d Provident Fund Scheme.Administrative Chargesa) 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 wagesb) 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 Lin ed Insurance Scheme:0.01% of the total on which the Employees Deposit Lin ed Insurance contributions recovered subject to a minimum of Rs. 2/- per month .

Inspection Chargesa) 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 Lin ed Insurance Scheme:0.005% of the total wages of the employees who are entitled to become members ofthe Employees Deposit Lin ed Insurance Scheme subject to a minimum of Re. 1/-

Duties of Employera) Employees Provident Fund Scheme (Para 36)and (Para 36A): Enrol the eligible employees as Employees Provident Fund subscriber from the rght date. Send initial returns in Form 5A , F9(Revised) , accompanied by F2(Revised), mon

hly returns in F5, accompanied by F2, F10, F12A accompanied by challans and annual return in F3A accompanied by F6A. To maintain the inspection note boo for an inspector to record his observation Maintain such accounts in relation to the amounts contributed to the fund andy his employees. To comply with all the directives issued by the Central Board for proper implemntation 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):


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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 Lin ed 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 contributionsand Administrative charges or Inspection charges .

DO S FOR A MEMBER: While joining an establishment, furnish details of previous employment if any, ith previous Provident Fund a/c number and scheme certificate. In case of existing Provident Fund/ Pension a/c, apply for transfer of previousa/c number to the present a/c number. Ensure that employee furnishes form with details of previous Provident Fund a/cno. to Employees Provident Fund Organisation. Execute form-2, in details of self, nominee for Provident Fund and pension and etails 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 idone immediately on joining the establishment. Provident Fund is deducted at statutory rate from the total wages i.e. basic, DA. and retaining allowance if any. If desirous of enhancing rate of contribution, inform the desire with the higherate 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 n the whole amount to Employees Provident Fund Organisation through employer. Employer can also contribute on the whole amount drawn as wages under intimationto Employees Provident Fund Organisation. Chec up periodically with the employer that contribution and other charges arepaid 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 TS FOR A MEMBER: Don t give false clarification and incorrect particulars to Employer and Employes Provident Fund Organisation. Don t fall victim to middlemen/ agents. Employees Provident Fund Organization

oes not have any agent. Don t allow Employer to deduct his own share of contribution or administrative harges payable by him from the wages. Don t be a party to misclassified allowances, with a view to avoid payment of Povident FundSPECIFIC 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 Trustes, 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 amou

ts 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 acounts.

SGL account with P.D.O of R.B.I is generally not opened by many Establishments


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The annual returns under Employees Pension Scheme 1995 (Form No. 7 and 8) whicis 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/sic /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 notificationsordinance etc. are not being incorporated /implemented in the Provident Fund rules by the exempted establishments.

EXEMPTION : PROVISIONS OF ACT / SCHEMESTypes of ExemptionAn establishment covered under the Employees Provident Fund & Miscellaneous Provisions Act 1952 is required to comply with the statutory provisions of the Actand also the provisions of the Schemes framed under the Act namely Employees Provident Fund Scheme, 1952, Employees Pension Scheme Scheme, 1995 and EmployeesDeposit Lin ed Insurance Schemes, 1976.

However, the Act provides for grant of exemption from the operation of the Act a

nd 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 ProvidentFund Scheme / Employees Pension Scheme /Employees Deposit Lin ed 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 CentralGovernment. Exemption from the Act is allowed only to a class of establishments. It is granted considering the financial or other circumstances of the class ofestablishments. 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:a. 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 receiptof pension benefits as admissible under the trust rules for a period of 5 yearsw.e.f. 18-02-2000. (Notification dated on 5.4.2000)b. 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 Lin ed 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 establishm

ent 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:a. To an establishment as a whole.b. To an individual employee ( under the Employees Provident Fund & Employees Deposit Lin ed Insurance Scheme only )c. To a class of employees.

Issue of Relaxation order under the Employees Provident Fund & Employees Deposit Lin ed Insurance Schemes :


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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 ta e some time to process the application, the Regional Provident Fund Commissioner / Central Provident Fund Commissioner asthe 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 Fundc. 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 ofmembers, Investment of monies, payment of inspection charges and submission ofreturns 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 Lin ed Insurance Scheme.Exemption from the operation of EmployeesProvident 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 consideredwhere 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 theAppropriate 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 isrequired to pay Inspection charges @ 0.18% of total wages on which Provident Fund is recovered, to the Regional Provident Fund Commissioner concerned by depositin 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 schemeto 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 F

und, gratuity or old age pension and such benefits separately or jointly are onthe 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 ofthe scheme to a class of employees. It is granted by the appropriate Governmenton the receipt of application from the employer. The exemption is granted where


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employees are entitled to benefits in the nature of Provident Fund, gratuity orold 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 themonth 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 CentralGovernment. The class of employee may again be permitted to join the statutoryfund. The re-election is permitted only once on each account.

Exemption- Provision of Act / Scheme-At a glanceS.No. Nature of Exemption Granted under Act/Scheme Authority to grant exemption Authority to issue Relaxation Order Remar s1. Exemption from the Act Section 16(2) of the Act CentralGovernment N.A. Exemption to a class of Establishment only for a specified period.2. Exemption from the operation of Employees Provident Fund Scheme 52Section 17(1)(a) or 17(1)(b) Appropriate Government Regional Provident FundCommissioner. (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 95Section 17 (1C) Appropriate Government To an Establishment as a whole.6. - Do - Section 17 (1C) Appropriate Government To a class of Establishment7. Exemption from the operation of Employees Deposit Lin ed Insurance Scheme 76 Section 17 (2-A) Central Provident Fund Commissioner RegionalProvident Fund Commissioner. (para28(7)) To an Establishment as a whole8. - 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 95Section 17 (1C) of an Act provides for grant of exemption from the operation o

f Employees Pension Scheme, 1995 . It is granted by the Appropriate Governmentthrough 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 exemptionis 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, aremore favourable then the benefits provided under this Scheme.

Exemption from the Employees Deposit Lin ed Insurance Scheme 76 :Section 17 (2A) of an Act provides for grant of exemption from the operation ofEmployees Deposit Lin ed Insurance Scheme ,1976 . It is granted to an establishment , where the employees are without ma ing any separate contribution or payment of premium , are in enjoyment of benefits in the nature of Life Insurance whether lin ed 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


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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 Lin ed Insurance Scheme,1976 by a Regional Provident Fund Commissioner .An establishment exempted from the operation of the Employees Deposit Lin ed 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 Lin ed Insurance Scheme,1976, the Regional Provident Fund Commissioner may grant exemptionfrom the operation of any or all of the provisions of the Employee Deposit Lin ed 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 .

EmployerCoverage Establishments employing 20 or more persons and engaged in any of the 180 indusries / Classes of Businesses specified.

Co-operative Societies, employing 50 or more persons & wor ing without the aid f power. Establishments not coverable statutorily can come under the coverage of the Actstatutorily. An establishment continues to be covered under the Act, irrespective of the falin the employment strength. Since the Act applies on its own force to the establishments, the employers arerequired to file the particulars in the specified format for registration and allotment of business number.Financial Obligations:Contributions: Statutory rate of contribution is 12% of emoluments (basic wages, dearness alloance, cash value of food concession and retaining allowances if any,) in the cas

e of 175 establishments. Rate of contribution shall be 10% in the case of the following:Bric , beedi, jute, guar gum factories, coir industry other than spinning sector. Establishments declared as sic underta ings by BIFR. A matching contribution is to be collected from the emoluments of the employeesOut of 12% (or 10% as the case may be) of the employers share of contribution, 8.33% is to be remitted towards pension fund. Employer is also required to pay a contribution of 0.5% of the emoluments towars EDLIS1976.Administrative Charges: An employer is required to pay administrative charges at 1.10% of emoluments toards provident fund charges and 0.01% towards EDLI Scheme 1976.

No separate administrative charges for pension schemeInspection Charges: In respect of exempted establishment under P.F. Scheme employer is liable to paonly inspection charges at the rate of 0.18% of emoluments. In the case of establishment exempted from EDLI Scheme, the employer is requird to pay only inspection charges at the rate of 0.005% of emoluments.Interest Liability: For belated remittances of contributions, administrative / inspection charges iterest at the rate of 12% on such remittances for the period of delay is to be remitted.


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Damages:- For all the belated remittances of contribution and administration/inspection carges damages are also payable as penalty ranging from 17% to 37% p.a. dependingupon delay.Duties of Employer Enrol all categories of employees including the employees engaged by or throughcontractors and also piece rated, hourly rated employees. Remit the contributions and administrative charges before the 15th of the folloing month. File the initial returns of Form 9, Form 3(P.S.), form 5A. File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remittinthe dues. Maintain the contribution card in respect of each employee in Form 3A and submithe annual returns in Form 3A and 6A after reconciliation with Challans and form 12A. The employer has to ensure that statutory dues in respect of contractors employes are remitted and returns filed. Employer should attest the form No.2 and the claims forms submitted by the meber/ legal heirs/ nominees. Ma e available all relevant records for inspection of visiting officials with de authorisation.Exemptions under the SchemesProvident Fund An individual member getting Provident Fund benefits on par with or better than

statutory provisions can apply for exemption in Form 1 under para 27. Employers can apply for exemption in respect of a class of employees getting siilar or better benefits than the statutory P.F. Scheme under P. 27A subject tothe conditons governing grant of exemption. The employer can see exemption from P.F. Scheme for the entire establishment f the majority of the employees also consent for exemption, subject to certainconditions governing grant of exemption and certain formalities.Pension Scheme Employer can avail exemption for the establishment as a whole, with the consentof majority of employees, if an alternative pension scheme is formulated by theestablishment with benefits either on par with or superior to the EPS 95 and subject to certification of the viability and long sustenance of the scheme by anindependent qualified actuary and satisfying the other conditions prescribed gov

erning the grant of exemptions. There is no provision for exemption of individuals or for class of employees.EDLI Scheme The establishment can get exemption from the EDLI Scheme, if the employees therin are entitled for a benefit in the nature of insurance whether lin ed to theirP.F. deposit or not and without paying any contributions.

MembersEligibility to Membership:a) Employees Provident Fund Scheme:1. Every employee (including part-time wor ers and those employed by or through contractors) shall be entitled to become a member of the Scheme from the da

te 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 serviceor if he has actually wor ed for 60 days during 3 months or less (There is no w


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age ceiling in the case of newspaper employee). (Para 80)6. Every Cine Wor er other than an excluded employee shall be entitled to become a member of the Fund if he has wor ed in not less than three feature filmswith 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 Schemeon 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 1952and 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 andhas 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 Lin ed Insurance Scheme:Every employee who become member of the Employees Provident fund Scheme/exempted Provident Fund Scheme.

Administrative Chargesa) 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 wagesb) 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 Lin ed Insurance Scheme:

0.01% of the total on which the Employees Deposit Lin ed Insurance contributions recovered subject to a minimum of Rs. 2/- per month .

Inspection Chargesa) 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 Lin ed Insurance Scheme:

0.005% of the total wages of the employees who are entitled to become members ofthe Employees Deposit Lin ed Insurance Scheme subject to a minimum of Re. 1/-

Duties of Employera) Employees Provident Fund Scheme (Para 36)and (Para 36A):1. Enrol the eligible employees as Employees Provident Fund subscriber from the right date.


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2. Send initial returns in Form 5A , F9(Revised) , accompanied by F2(Revised), monthly returns in F5, accompanied by F2, F10, F12A accompanied by challansand annual return in F3A accompanied by F6A.3. To maintain the inspection note boo 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 properimplementation 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 Lin ed 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 contributionsand Administrative charges or Inspection charges .

DO S FOR A MEMBER:1. While joining an establishment, furnish details of previous employment i

f any, with previous Provident Fund a/c number and scheme certificate.2. In case of existing Provident Fund/ Pension a/c, apply for transfer of previous a/c number to the present a/c number.3. Ensure that employee furnishes form with details of previous Provident Fund a/c no. to Employees Provident Fund Organisation.4. 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.5. Ensure that particulars furnished are correct in all respects.6. Ensure that enrolment to Employees Provident Fund/ Employees Pension Scheme is done immediately on joining the establishment.7. Provident Fund is deducted at statutory rate from the total wages i.e. basic, D.A. and retaining allowance if any.

8. 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.9. 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.10. Chec 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 TS FOR A MEMBER:1. Don t give false clarification and incorrect particulars to Employer andEmployees Provident Fund Organisation.2. Don t fall victim to middlemen/ agents. Employees Provident Fund Organization does not have any agent.3. Don t allow Employer to deduct his own share of contribution or administrative charges payable by him from the wages.


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4. Don t be a party to misclassified allowances, with a view to avoid payment of Provident Fund

FOLLOWING DOCUMENTS ARE REQUIRED FOR DECIDING FINAL DATE OF COVERAGEI. MANUFACTURING UNIT1 Copy of 1st partnership deed / memoranda and article of association2 Extracts from 1st Year ledger / cashboo s for :

1st purchase of raw material1st salary / wages paid1st salaray / wages paid1st sale1st rent paid

3 Copy of 1st Sales tax assessment order4 Copy of 1st Income Tax assessment order5 Copy of 1st years balance sheet6 Salary/wages registers, vouchers, boo s and balance sheets from date ofstart till date of provisional coverage done earlier7 C.S.T & B.S.T. Certificate8 Boo s of accounts ( Ledger, cash boo s etc.) since beginning.9 Balance sheet / P&L account (in case of Limited company Annual Report since beginning.)10 Shops & Establishment Registration Certificate/Factory Licence11 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 beginning14 List of Directors/Partners/ owners along with their residential addresses15 Name of the Ban ers, Address of the Ban and and name of the person responsible for financial affairs.II. RESTAURANT/RESIDENTIAL HOTEL1 All the above documents except Sr. No. 12 Invitation card or paper-cutting of the advertisement regarding the inauguration of the restaurant/ hotel.3 Eating House Licence from the public health department4 Licence for public entertainment in the premises issued by the police de

partment.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 EMPLOYERSRates of Contribution:a) The Employees Provident Fund SchemeIn respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as

sic ) 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 highercontributions 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 emloyed.

Any sic industrial company as defined in Clause(0) of Sub-Section(1) of Sectio3 of the sic industrial companies ( special provisions ) Act 1985 and which ha


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s been declared as such by the Board for Industrial and Financial Reconstruction.

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

Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Bric, (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.b) The Employees Pension SchemeFrom 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 Lin ed Insurance Scheme:No amount is recovered from employee s wages . Employer should pay 0.5% of totalwages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).SUBMISSION OF RETURNS BY UN-EXEMPTED ESTABLISHMENTSFORM NO. DESCRIPTION PURPOSEOne time Returns on Coverage1(Revised) Nomination form of EPF Scheme. This is given by PF members and

utilised for releasing PF dues to the nominees. It also contains the details ofthe family members. Print Now9(Revised) The Employees Provident Funds Scheme , 1952 [para 36(1)] and the Employees Pension Scheme 1995[para 20] . Return of employees who are entitled and required to become members of the Employees Provident Fund and PensionFund. (Within 15 Days of coverage). Print Now

5A The Employees Provident Funds Scheme , 1952 [para 36(a)] and the Employees Pension Scheme 1995[para 21] Return of ownership to be sent to the Regional Commissioner. (in duplicate) Within 15 Days of coverage. Print Now

Monthly

12A The Employees Provident Funds Scheme , 1952 [para 36(1)] and the Employees Pension Scheme 1995[para 20(4)] and The Employees Deposit Lin ed Insurance Scheme, 1976. Consolidated Statement of dues and remittance By 25th ofthe following month to which the dues relate. Print Now

5 The Employees Provident Funds Scheme , 1952 [para 36 (2)(a)] Return of Employees qualifying for membership to the Employees Provident Fund for the first time during every month. Within 15 Days of the following month. Print Now

10 The Employees Provident Funds Scheme , 1952 [para 36 (2)(a) & (b)Return of members leaving service during the month. Print Now

Annual3A The Employees Provident Funds Scheme , 1952 [para 35 & 42] and the Employees Pension Scheme 1995 (Para 19) Member s annual Contribution card : Form showing month wise recoveries towards E.P.F and Pension Fund in respect of a member for one financial year. To be furnished by the employer before 30th Aprilof the following year. Print Now

6A The Employees Provident Funds Scheme , 1952 [para 43] and the EmployeesPension Scheme 1975[para 20] Consolidated annual contribution stateme

nt : This form provides annual contributions of each member of the establishment


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. A vital form for compiling the annual Provident Fund statement of a subscriber. To be submitted by 30th April. Print Now

Occasional211 The Employees Provident Funds Scheme , 1952 [para 34]. Declaration by a person ta ing up employment in an establishment in which the EmployeesProvident Funds & Family Pension Fund Scheme are in force. Print Now

Contribution Challans . .SUBMISSION OF RETURNS BY EXEMPTED ESTABLISHMENTS

FORM NO. DESCRIPTION PURPOSEOne time Returns on CoveragePension3(PS) The Employees Pension Scheme 1995[para 20 (i)]. Consolidated Return of employees who are entitled and required to become members of the PensionFund on the date the Pension comes into force. Within 15 days of coverage.Print NowEmployees Deposit Lin ed Insurance SchemeF1 (IF) The Employees Deposit Lin ed Insurance Scheme, 1976[para 10] .Consolidated Return of employees who are entitled and required to become membersof the Insurance Fund on the date the Scheme comes into force. Within 15 days of coverage. Print NowMonthly Returns

PensionF4 (PS) The Employees Deposit Lin ed - Insurance Scheme, 1976 [para 10] . A return of members joining service during the month. Within 15 days of closeof every month. Print NowF5 (PS) The Employees Pension Scheme 1995[para 20 (2)]. (leaving) Return of Members Leaving Service During the Month. Within 15 days of close of every month. Print Now

Employees Deposit Lin ed Insurance SchemeF2 (IF) The Employees Deposit Lin ed Insurance Scheme, 1976 [para 10] .Return of employees entitled for membership of Insurance Fund. Within 15 days ofclose of every month. Print NowF3 (IF) The Employees Deposit Lin ed Insurance Scheme, 1976 [para 10] .

Return of members of Insurance Fund Leaving service during the month. Within 15days of close of every month. Print NowAnnual ReturnsPensionF7 (PS) The Employees Pension Scheme 1995[para19] . Contribution card for members for the year : Form showing month wise recoveries towards Pension Fund inrespect of a member for one financial . To be furnished by the employer before 30th April of the following year. Print Now

F8 (PS) The Employees Pension Scheme 1995[para 20]. Consolidated annual contribution statement : This form provides annual contributions of each member of the establishment . A vital form for compiling the annual PS statement of a subscriber

to be submitted by 30th April of the following years. Print Now

Employees Deposit Lin ed - Insurance SchemeF4 (IF) The Employees Deposit Lin ed - Insurance Scheme, 1976 [para 10] .Consolidated annual contribution statement : This form provides annual contributions of each member of the establishment. A vital form for compiling the annualInsurance statement of a subscriber. Print NowF4 (IF) No. of employees and amount of inspection charges paid (.005%) of wages.Occasional Returns


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PensionF9 The Employees Pension Scheme 1995[para 24] . Declaration by a personta ing up employment in an establishment in which the Employees Pension Schemeis in force. Print Now

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 19On death of member by nominee/family member(s)/legal heirs: through Form 20SETTLEMENT UNDER PARA 69-TO MEMBER:THROUGH FORM No.19Immediate settlement without waiting period of 2 months Settlement onlyafter a waitingperiod of two months69(1)(a) Retirement after attaining 55 years of age. 69(1)(e)(i) transfer ofa 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 thepurpose of getting married; waiting period not applicable.69(1)(c) Migration from India for permanent settlement abroad or ta ing 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. 2070(i) If a nomination exists, payment is made to the nominee in accordance withForm 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.a. Major sons ,b. Major sons of a deceased son ,

c. Married daughters whose husbands are alive ,d. 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 bemade 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, ifthe 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 thetitle of the claimant.When the payment is to be made to a minor, it is payable to :a. The Guardian appointed under Guardian and Wards Act 1890 , failing (a),


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tob. The Guardian appointed by the member as per para 61(4A), failing (a),(b), toc. To the natural guardian of the minor, failing (a) (b) (c), tod. 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:a. The Manager appointed for the minor s estate under Indian Lunacy Act ,1912 failing (a),b. The natural guardian of the lunatic, failing (a)(b),c. 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 ofa 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.WITHDRAWALSTypes of Benefit Eligibility Eligible Amount Form Documentary SupportThe purchase of site for construction of house

5 Years of membership of the Fund (Minimum balance in members a/c shouldbe Rs. 1000/-)* The purchase should be in favour of member or member & spouse. l 24 months wages (Basic & DA)ORl Members own share of contribution + Companys share of Contribution with interestthereon

No.31A declaration from the member that, dwelling site or dwelling house/flator 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 members a/c should be Rs. 1000/-)* The purchase should be in favour of member or member & spouse. l 36 months wages (Basic+DA)ORl Members own share of contribution + Companys share of contribution with interest thereon

No.31

A declaration from the member that, dwelling site or dwelling house/flator 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 members a/c should be Rs. 1000/-)* The purchase should be in favour of member or member & spouse. l 36 months wages (Basic+DA)ORl Members own share of contribution + Companys share of contribution with intere


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st 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 thedate of completion of dwelling house

12 months basic or members own share of contribution with thereon.No.31

68 BB : REPAYMENT OF LOANTypes of Benefit Eligibility Eligible Amount Form Documentary SupportAdvance from the fund for repayment of loan 10 years membership of the fund& member should have ta en loan from Govt. Body 36 month wages (Basic +DA)ORMembers own share of Contribution + Companys share of Contribution with interestthereon. No.31

A certificate from the lending authority furnishing the details of loanand outstanding amount.68 J : ADVANCE FROM FUND FOR ILLNESSTypes of Benefit Eligibility Eligible Amount Form Documentary SupportAdvance from the fund for illness viz. hospitalisation for more than a month, ma

jor 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 hospitalisationor operation.68 K : ADVANCE FROM THE FUND FOR MARRIAGETypes of Benefit Eligibility Eligible Amount Form Documentary Supportl 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 ofthe fund & minimum balance in members account should be Rs. 1000/- l 50% ofmembers own share of contribution No.31 Declaration by the member whichis attested by the employer.

68L : ADVANCE IN ABNORMAL CONDITIONSTypes of Benefit Eligibility Eligible Amount Form Documentary SupportGrant 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 members 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 ELECTRICITYTypes of Benefit Eligibility Eligible Amount Form Documentary SupportGrant of advance to members affected by cut in the supply of electricityl The advance may be granted only to a member whose total wages for any one mont

h commencing from the month of January 1973 were 3/4th or less than 3/4th of wages for a month l Wages for a monthORl Rs.300/- No.31 Certificate from State Govt. regarding cut in the supplyof electricity.68 N : GRANT OF ADVANCE TO MEMBERS WHO ARE PHYSICALLY HANDICAPPEDTypes of Benefit Eligibility Eligible Amount Form Documentary SupportTo Physically Handicapped member for purchase of an equipment required to minimize the hardship on account of handicap. Production of medical certifica


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te from a competent medical practitioner to the effect that he is physically handicapped Basic wages+ DA for six monthsor 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 themember is physically handicapped..Note: For calculation/ computing the period of membership U/P 68B, 68BB, 68K, total service exclusive of periods of brea under the same employer before the scheme is applied to him, as well as period of membership of the fund is always included.

Annual Statement of account

As soon as possible and after the close of each period of currency of contribution, annual statements of accounts will be sent to each member through the factory or other establishment where the member was last employed. The statement of accounts in the fund will show the opening balance at the beginning of the period,amount contributed during the year, the total amount of interest credited at the end of the period or any withdrawal during the period and the closing balanceat the end of the period. Members should satisfy themselves as to the correctness of the annual statement of accounts and any error should be brought through the employer to the notice of the Provident Fund Office within 6 months of the receipt of the statement.

Contribution

E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner providedby the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employers contribution and employees contribution at a specified rate. The rates are revised from time to time. Currently, the employees contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employers is 4.75%of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.100/- are exempted from paymentof contribution. Employers will however contribute their own share in respect of these employees.Collection of Contribution

An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day ofthe Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Ban of India and some other ban s to receive the payments on its behalf.Contribution Period and Benefit PeriodThere are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.Contribution period Corresponding Cash Benefit periodContribution Period Cash Benefit Period1st April to 30th Sept. 1st January of the following year to 30th June.1st Oct. to 31st March 1st July to 31st December of the year following

Medical BenefitTYPE OF MEDICAL BENEFITS PROVIDEDThe Employees State Insurance Scheme provides full medical care in the form of medical attendance, treatment, drugs and injections, specialist consultation and hospitalization to insured persons and also to members of their families where the facility for Specialist consultation, hospitalization has been extended to thefamilies.


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For the families, this benefit has been divided into two categories as under:-FULL MEDICAL CAREThis consists of hospitalization facilities and includes specialist services, drugs and dressings and diets as required for in-patients.EXPANDED MEDICAL CAREThis consists of consultation with the specialists and supply of special medicines and drugs as may be prescribed by them in addition to the out-patient care. This also includes facilities for special laboratory tests and X-Ray examinations.Apart from the curative services provided through hospitals and dispensaries, the Corporation also provides the following facilities including family welfare services.IMMUNIZATIONThe Corporation has embar ed upon a massive programme of immunization of young children of insured persons. Under this programme, preventive inoculation and vaccines are given against diseases li e diphtheria, pertusis, polio, tetanus, measles, mumps, rubella, tuberculosis etc.FAMILY WELFARE SERVICESAlong with the immunization programme, the Corporation has been underta ing provision of family Welfare Services to the beneficiaries of the Scheme. The Corporation has organized these services in 180 centres besides reserving 330 beds in hospitals for underta ing tubectomy operations. So far, 828976 sterilization operation viz. 176197 vasectomies and 652779 tubectomies have been performed upto 31.3.1999. The ESI Corporation has also extended additional cash incentive to insu

red persons to promote acceptance of sterilization method by providing sic nesscash benefit equal to full wage for a period of 7 days for vasectomy and 14 daysfor tubectomy. The period for which cash benefit is admissible is extended beyond the above limits in the event of any complications after Family Planning operations.SUPPLY OF SPECIAL AIDSInsured persons and members of their families are provided artificial limbs, hearing aids, and artificial appliances li e spinal supports, cervical collars, waling calipers, crutches, wheel chairs and cardiac pace ma ers as a part of medical care under the Scheme.Sic ness BenefitsSic ness Benefit represents periodical cash payments made to an IP during the period of certified sic ness occurring in a benefit period when IP requires medica

l treatment and attendance with abstention from wor on medical grounds. Prescribed certificates are; Forms 8,9,10,11 & ESIC-Med.13. Sic ness benefit is 70% ofthe average daily wages and is payable for 91 days during 2 consecutive benefitperiods.

Qualifying Conditions(i) To become eligible to Sic ness Benefit, an IP should have paid contribution for not less than 78 days during the corresponding contribution period.(ii) A person who has entered into insurable employment for the first time has to wait for nearly 9 months before becoming eligible to sic ness benefit, because his corresponding benefit period starts only after that interval.(iii) Sic ness Benefit is not payable for the first two days of a spell of sicness except in case of a spell commencing within 15 days of closure of earlier

spell for which sic ness benefit was last paid. This period of 2 days is called"waiting period". This provision should be clearly understood by IMOs/IMPs as actual experience shows that such of IPs who want to avail medical leave on flimsygrounds generally come for First Certificate/First & Final Certificate within 15 days of earlier spell, usually on unpaid holidays and/or on each wee ly off etc, to avoid loss of benefit for 2 days due to fresh waiting period.

Extended Sic ness Benefit (ESB)


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IPs suffering from long term diseases were experiencing great hardship on expiryof 91 days Sic ness benefit. Often they, though not fit for duty, pressed for aFinal certificate. Hence, a provision for paying Sic ness Benefit for an extended period (Extended Sic ness Benefit)of upto 2 years in a ESB period of 3 years.1. An IP suffering from certain long term diseases is entitled to ESB, only after exhausting Sic ness Benefit to which he may be eligible. A common list of these long term diseases for which ESB is payable, is reviewed by the Corporation from time to time. The list was last reviewed on 5.12.99 and revised provisions ofESB became effective from 1.1.2000 and at present this list includes 34 diseases which are grouped in 11 groups as per International Classification of diseasesand theo names of many existing diseases have been changed as under :-I Infectious Diseases1. Tuberculosis2. Leprosy3. Chronic Empyema4. AIDS

II Neoplasms5. Malignant Diseases

III Endocrine, Nutritional and Metabolic Disorders6. Diabetes Mellitus-with proliferative retinopathy/diabetic foot/nephropathy.

IV Disorders of Nervous System7. Monoplegia8. Hemiplegia9. Paraplegia10. Hemiparesis11. Intracranial Space Occupying Lesion12. Spinal Cord Compression13. Par insons disease14. Myasthenia Gravis/Neuromuscular Dystrophies

V Disease of Eye15. Immature Cataract with vision 6/60 or less16. Detachment of Retina

17. Glaucoma

VI Diseases of Cardiovascular System18. Coronary Artery Disease:-(a) Unstable Angina(b) Myocardial infraction with ejection less than 45%19. Congestive Heart Failure- Left , Right20. Cardiac Valvular Diseases with failure/complications21. Cardiomyopathies22. Heart disease with surgical intervention alongwith complications

VII Chest Diseases23. Bronchiectasis

24. Interstitial Lung Disease25. Chronic Obstructive Lung Diseases (COPD) with congestive heart failure (Cor Pulmonale)

VIII Diseases of the Digestive System26. Cirrhosis of liver with ascities/chronic active hepatitisIX Orthopaedic Diseases27. Dislocation of vertebra/prolapse of intervertebral disc28. Non union or delayed union of fracture29. Post Traumatic Surgical amputation of lower extremity


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30. Compound fracture with chronic osteomyelitis

X Psychoses31. Sub-group under this head are listed for clarification(a) Schizophrenia(b) Endogenous depression(c) Manic Depressive Psychosis (MDP)(d) Dementia

XI Others32. More than 20% burns with infection/complication33. Chronic Renal Failure34. Reynauds disease/Burgers disease.1. In addition to the above list, Director General/Medical Commissioner are authorised to sanction ESB for a maximum period upto 730 in cases of rare but treatable diseases or under special circumstances, such as, adverse reaction to drugswhich have not been included in the above list, depending on the merits of eachcase, on the recommendations of RDMC/AMO or either authorised officers runniongthe medical scheme.2. To be entitled to the Extended Sic ness Benefit an Insured Persons should have been in continuous employment for 2 years or more at the beginning of a spellof sic ness in which the disease is diagnosed and should also satisfy other contributory conditions.3. ESB shall be payable for a period of 124 days initially and may be extended u

p to 309 days in chronic suitable cases by Regional Dy. Medical Commissioner/Medical Referee/Administrative Medical Officer/Chief Executive of the E.S.I. Schemein the State or his nominee on the report of the specialist(s).

Enhanced Sic ness BenefitsIt was introduced w.e.f 1.8.1976 as an incentive to IPs/IWs for undergoing Vasectomy /Tubectomy. Insured Persons eligible to ordinary sic ness benefit are paidenhanced sic ness benefit at 100% of average daily wages for undergoing sterilisation operations for family welfare. Duration of enhanced Sic ness Benefits is upto 7 days in the case of Vasectomy and upto 14 days in the case of the Tubectomy from the date of operation or from the date of admission in the hospital as the case may be. The period is extendable in case of post operative complicationsMaternity Benefit

Maternity Benefit is payable to an Insured Woman in the following cases subjectto contributory conditions:-Confinement-payable for a period of 12 wee s (84 days) on production of Form 21and 23.Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6 wee s (42 days) from the date following miscarriage-on the basis of Form 20 and 23.Sic ness arising out of Pregnancy, Confinement, Premature birth-payable for a period not exceeding one month-on the basis of Forms 8, 10 and 9.In the event of the death of the Insured Woman during confinement leaving behinda child, Maternity Benefit is payable to her nominee on production of Form 24 (B).Maternity benefit rate is 100% of average daily wages.

Temporary Disablement Benefit(a) TDB is payable to an employee who suffers employment injury (EI) or Occupational Disease and is certified to be temporarily incapable to wor . "Employment Injury" has been defined under Section 2(8) of the Act, as a personal injury to an employee caused by accident or occupational disease arising out of and in thecourse of his employment, being in insurable employment, whether the accident occurs or the occupational disease is contracted within or outside the territoriallimits of India.b. Certificates Required for TDB:


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Accident Report in form 16,Form 8,9,10, 11 and ESIC Med.13.c. Eligibility for TDB :The benefit is not subject to any contributory conditions. An IP is eligible from the day he joins the insurable employment.(d) TDB Rate is 90% of average daily wages.d. Duration of TDB :There is no prescribed limit for the duration of TDB. This is payable as long astemporary disablement lasts and significant improvement by treatment is possible. If a Temporary Disablement spell lasts for less than 3 days (excluding day ofaccident), IP will be paid sic ness benefit, if otherwise eligible. A special point for IMOs/IMPs is that some IPs may resist ta ing a Final Certificate especially before 3 days for fear of loss of TDB.

Permanent Disablement Benefit

(a) PDB is payable to an IP who suffers permanent residual disablement as a result of EI (including Occupational Diseases) and results in loss of earning capacity. The proper authority for assessing loss of earning capacity for injuries isthe Medical Board and for Occupational Diseases, Special Medical Board.

(b) The duration of PDB may be for the period given by Medical Board, if assessment is provisional or for entire life if assessment is final.

(c) PDB Rate: The PDB rate is calculated as percentage of loss of earning capacity as assessed by the Medical Board/MAT/EI Court in relation to TDB. List of injuries deemed to result in permanent total disablement and percentage loss of earning capacity has been previewed in 2nd Schedule to ESIC Act, 1948. Hence, the maximum rate of PDB can be equal to the rate of TDB.PDB amount is revised by the ESIC from time to time to adjust for inflation. Thelatest enhancement is with effect from 01.08.2009

(d) Commutation of PDB (Regulation 76-B): IP whose PDB has been assessed as final and who has been awarded the same at the rate not exceeding Rs.1.50 per day may apply for commutation of periodical payments of PDB into a lump-sum. When an application for commutation is made within 6 months of the date of communicationof Medical Board decision periodical payments shall be commuted into a lump sum

provided the total commuted value does not exceed Rs.10,000 at the time of commencement of final award. However, where such an application is made after expiryof 6 months, LO/RO will refer the case to MR/PTMR to certify whether the IP hasan average expectation of life for his age. Such a certificate is issued by Medical Referee in the relevant place on RO/LO letter.

(e) Age of an IP will have to be proved to the satisfaction of the Corporation in all cases. Medical Boards assess the age of IPs who are not able to produce satisfactory proof of age and opinion of Medical Board shall be final in this regard.Dependants Benefit

The dependants benefit is payable to the dependants as per Section 52 of the Act

read with provision of 6(A) of Section 2 in cases where an IP dies as result ofEI. The age of dependants, has to be determined either by production of Documentary evidence as specified in Regulation 80(2) or Age certified by Medical Officer In charge of Government Hospital or Dispensary.

The minimum rate of DB w.e.f 1.1.90 is Rs.14/- per day and these rates of the DBare increased from time to time. The latest enhancement is with effect from 01.08.2009Dear Sapna,


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In addition to my friend Teli epalli s reply, I shall give the details on calculation of Gratuity.

For gratuity calculation, the formula is Number of years of service x last drawnsalary x15 /26.

1. Number of years of service : If the service comprises of completed years anda fraction of year, the fraction has to be rounded to full year. i.e. If the fraction is 6 months or below, it will be rounded down. And if it is above six months, it will be rounded up.

2. Last drawn salary : Practically it is advisable to ta e average salary of preceeding twelve months.

For eg : Let the service as 5 years and salary as Rs. 26,000.

Gratuity c

pf contribution / esi contribution

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