the employee's profident fund act, 1952
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The Employee's Profident Fund Act, 1952. HUMAN RESOURCE DEPARTMENT. By Rajasekar. The Employee’s Provident Fund Act 1952. The Employee’s Provident Funds Act 1952 Employer role & responsibility Employee role & responsibility The Employees Pension Scheme 1995 - PowerPoint PPT PresentationTRANSCRIPT
HUMAN RESOURCE DEPARTMENT
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By Rajasekar
The Employee’s Provident Funds Act 1952
Employer role & responsibility
Employee role & responsibility
The Employees Pension Scheme 1995
The Employees Deposit-Linked Insurance Scheme (EDLI)
1976
List of Forms
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Salary consists of two parts i.e. earnings & deductions
Provident Fund is one of the statutory deduction done by the
employer at the time of salary payment
Provident Fund is governed by the Employee’s Provident
Fund Act 1952
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Introduction Provident Fund has come into force to give better future to
employees on their retirement & his dependants in case of his death during employment
The Employees Provident Funds Act 1952 is compulsory contributory fund for the future of an employee after retirement or for his dependents in case of his early death
Act is applicable to all states of India except Jammu and Kashmir
Eligibility Every industry employing 10 or more persons (180 industries
are specified in Schedule 1 of the Act) Every industry employing 10 or more persons which the
Central Govt. may notify Any other establishment notified by the Central Government
even if employing less than 10 persons4
Eligibility & Entitlement Every employee employed directly / through a contractor who
is in receipt of wages are eligible to become a member of the fund (exception - Apprentice under the Apprentices Act and casual laborers)
Irrespective of permanent / probationary employees, all employees are eligible for joining the PF scheme from the date of joining the service
Minimum 10% of the basic pay for establishments employed less than 10 persons; sick industries declared by necessary authority; Jute, Beedi , Brick, Coir & Guar Gum Industries / Factories
Other industries maximum 12% of the basic pay A member can contribute voluntarily more than statutorily
prescribed rate (upto 100% of basic salary) which will be transferred to his PF A/c
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Calculation 12% contribution by the employee is directly transferred to his
Provident Fund A/c 12% is contributed by the employer out of which 8.33% is
credited to Employee Pension Fund and the balance 3.67% is transferred to PF A/c of the employee
1.10% Administration charges on total wages are payable by the employer
0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and payable by the employer towards EDLI fund
0.01% EDLI Administration charges calculated on total EDLI slab wages are payable by the employer
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Benefits Employees can take advances / withdraw the PF in case of
retirement, medical care, housing, family obligation, education of children & financing of life Insurance Polices
Upto 90% of the PF amount can be withdrawn at the age of 54 years or before one year of actual retirement
PF amount of the deceased member is payable to nominees / legal heirs
Equal contribution by the employer present interest rate @ 8.5% PF A/c can be transferred if any member changes from one
establishment to other where the PF Scheme is applicable
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Interest Interest is credited to the members PF A/c on monthly
running balance Interest rate is fixed by the Central Government in
consultation with the Central Board of trustees of EEPF every year during March / April
The present rate of interest is 8.5%
Nomination The member can nominate other person / persons to receive
the Fund amount in the event of his death The nomination details provided by the members are
maintained at the Regional Provident Fund Office for use in the event of death of the member
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Annual Statement of Account After the close of each year of contribution, annual
statement of account will be sent to each member through establishment where the member was last employed through form 23.
Form 23 will show the opening balance at the beginning of the year, contributions during the year, the amount of interest credited at the end of the period and the closing balance at the end of the year
If any error is noticed in Form 23, the member shall bring the same to the notice of the PF Office through employer within 6 months from the date of receipt of the statement
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Full Settlement PF A/c settled immediately under the circumstances;
◦ Retirement after 58 years◦ Retirement on account of permanent incapacity ◦ Termination of service on retrenchment◦ Voluntary Retirement Scheme (VRS)◦ Permanent migration from India to settle abroad / taking
employment◦ For female members leaving service for getting married
PF A/c settled after two months under the circumstances;◦ Resignation from the services
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Advances / Withdrawals Purchase of site for construction of House / purchase of flat Additions / alterations / improvements to the house Repayment of loan Hospitalisation for more than a month / major surgical
operation / suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc
Marriage of self / son / daughter / sister / brother Education of son / daughter Physically handicapped member for purchasing an
equipment to minimize the hardship due to handicap
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Employer Role & Responsibility
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Monthly Returns Filing monthly PF returns with the EPFO within 15 days of
the close of each month Provide list of new employees joined in the establishment
during the preceding month & are qualified to become member in fund (Form-5)
Provide list of employees leaving service during the preceding month (Form-10)
Employer should file 'Nil' returns if there is no new employee or no employee leaving the service during the preceding month
Provide the total no. of members last month, new members joined and existing members resigned in the preceding month & total no. of present subscribers to be fund (Form-12A)
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Annual Returns Employer shall send to the Commissioner within one month
of the close of the year, a consolidated Annual Contribution Statement (Form-6A) and individual employee sheet (Form-3A) showing the contributions made by the employees and employer during the year
Penalty 12–37% interest is payable for the delayed period in remitting
contributions/ administrative charges depending upon the delayed period
Exemption Employer can seek exemption from the Scheme if similar /
better benefits are provided other than the Scheme by forming a Voluntary PF Trust which will work under the rules & regulations of EPFO
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Employee Role & Responsibility
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Provide details of self & nominees (Form-2) for PF & Pension Scheme at the time of joining the establishment
In case of already having PF A/c, apply for transfer of previous A/c to the present A/c
If willing to increase contribution, inform the same to the employer to deduct the amount from the salary (Voluntary Provident Fund).
Voluntary PF can be upto 100% of wages Understand that the employer is not liable to pay any
contribution on voluntary PF Understand that Employees' Provident Fund Organization
does not have any agent / middlemen
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Employees Pension Scheme 1995
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Introduction To give long term protection / financial security to employee
upon retirement and his family in case of his pre-mature death, family pension scheme has come into force by diverting 8.33% contribution made by employer towards PF scheme
Application Scheme is compulsory for all the existing members who
become members of the Employees Provident Fund Scheme
Eligible Monthly pension to employees on retirement Widows on death of the member Children of the member below 25 years age Monthly pension to members upon permanent total
disablement during service
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The Employees Deposit-Linked Insurance Scheme 1976
(EDLI)
Application EDLI scheme is compulsory for all the existing members
who become members of the PF Scheme Life insurance benefit (death coverage) of the employee is
available under this scheme while in service
Calculation EDLI is calculated on EDLI slab – Rs. 6500/- 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages
and transferred to EDLI fund 0.01% EDLI Administration charges calculated on total EDLI
wages EDLI / administration charges are payable by the employer
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Eligible Person who is eligible to receive PF dues of deceased
member who died while in service is only eligible to receive EDLI fund
Exemption Employer can seek exemption from the Scheme if similar /
better benefits are provided other than the Scheme with the consent of majority of employees
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List of Forms
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Forms For Claiming Benefits Under PF Scheme
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Form Purpose
13(revised)
For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme
14Application for financing a life insurance policy out of PF A/c
19To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination
20In the event of death of member, this form is to be used by a nominee / family member to claim the member's PF accumulation
31For the use of PF members to avail advances / withdrawals as provided in the scheme
Forms For Claiming Benefits Under Pension Scheme
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Form Purpose
10 CTo be submitted by a member to withdraw his EPS fund
10 D
To be submitted by the first claimant i.e.- member - widow / widower
- Orphan- nominee
Forms For Claiming Benefits Under EDLI Scheme
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Form Purpose
5 (I.F.)To be submitted by the person eligible to receive the PF A/c dues of the deceased member who died while in services
Summary
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Form Purpose
2 Nomination Form
5Return of Employees qualifying for membership to the Employees' Provident Fund for the first time during every month. Within 15 Days of the following month.
10 Return of members leaving service during the month.
12AConsolidated Statement of dues and remittance By 25th of the following month to which the dues relate.
3A Member's annual Contribution card
6A Consolidated annual contribution statement
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January
•Before 15th P.F., P.F. Challan
•Before 25th P.F Form 5, 10 & 12A(P.F)
•Monthly statutory register daily/end of the month
(Monthly statutory register should be maintained)
February
•Same as January month
March
•Before 15th P.F., P.F. Challan
•Before 25th P.F Form 5, 10 & 12A(P.F)
•P.F, P.F. Annual Returns form 6A & 3A
•Monthly statutory register daily/end of the month
(Monthly statutory register should be maintained)
April to December
•Same as January month
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