|
|
|
The Employees' Provident Funds Misc. Provisions Act & The Schemes
|
Eligibility |
Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment. |
|
Payment of Contribution |
• The employer shall pay the contribution payable to the EPF, DLI and Employees' Pension Fund in respect of the member of the Employees' Pension Fund employed by him directly by or through a contractor.
• It shall be the responsibility of the principal employer to pay the contributions payable to the EPF, DLI and Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor. |
|
Clarification about Contribution |
Alter revision in wage ceiling from Rs.5000 to Rs.6500 w.e.f. 1-6-2001 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.6500 per month towards Employees' Pension Scheme. The employer's share in the Pension Scheme will be Rs.541 w.e.f. 1-6-2001.
Under Employees' Deposit-Linked Insurance Scheme the contribution O 0,50% Is required to be paid upto a maximum limit o< Rs.6500. The employer will pay administrative charge & 0.01% on a maximum limit of Rs.6500.
The employer will also pay administrative charges @ 0.01% on maximum limit of Rs.6500 whereas an exempted establishment will pay inspection charges @ 0.005% on the total wages paid |
| Notes: |
(1) The above clarification is given by taking wages upto a maximum of Rs.6500 towards wage (basic + DA).
(2) Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and il, for instance, such an employee is getting Rs. 10,000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer's share towards provident fund contribution will be Rs 659 and Rs.541 towards Employees Pension Fund. |
|
|
|
Applicability |
• Every establishment which is a factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed.
• Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf.
• Any establishment employing even less than 20 persons can be covered voluntarily u/s 1 (4) of the Act. |
|
|
Benefits |
|
Employees covered enjoy a benefit of Social Security in the form of an unattachable and un withdrawable (except in severely restricted circumstances like buying house, marriage/ education, etc.) financial nest egg to which employees and employers contribute equally throughout the covered persons' employment.
This sum is payable normally on retirement or death. Other Benefits include Employees' Pension Scheme and Employees' Deposit Linked insurance Scheme |
|
|
 |
Rates of Contribution |
 |
|
Scheme |
Employee's |
Employer's |
Central Govt.'s |
Provident Fund Scheme |
12% |
Amount > 8.33% (in case where contribution is 12% or 10%)
10% (in case of certain Establishments as per details given earlier) |
NIL |
Insurance Scheme |
NIL |
0.5% |
NIL |
Pension Scheme |
NIL |
8.33% (Diverted out of Provident Fund Contrlbutions) |
1.16% |
|
|
|
Damages |
| • |
Less than 2 months |
@ 1 7% per annum |
| • |
Two months and above but less than four months |
@22% per annum |
| • |
Four months and above but less than six months |
@27%per annum |
| • |
Six months and above |
@37% per annum |
|
|
Penal Provision |
Liable to be arrested without warrant being a cognisable 2ji offence. Defaults by employer in paying contributions or ^^2i|H7 inspection/adminis tra tive charges attract imprisonment upto 3 years and fine upto Rs. 10,000 (S.14). For any 15 "r retrospective application, all dues have to be paid by employer with damages upto 100% of arrears. |
|
|
|
|
|
|
