NATIONAL ACADEMY FOR TRAINING AND RESEARCH IN SOCIAL SECURITY READING MATERIAL DR. SYAMA PRASAD MOOKERJEE INSTITUTE OF SOCIAL SECURITY ADMINISTRATION, Employees’ Provident Fund Organisation (Ministry of Labour & Employment, Govt. of India) Sector – 16A, Near Old Faridabad Nation Highway Crossing, Workshop For Employers/EPF Members Of Unexempted Establishments 18 TH – 19 TH December 2007 Study Guide on Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 Employees’ Provident Funds Scheme, 1952 Employees’ Pension Scheme, 1995 Employees’ Deposit Linked Insurance Scheme, 1976
Transcript
NATIONAL ACADEMY FOR TRAINING AND RESEARCH IN SOCIAL SECURITY
READING MATERIAL
DR. SYAMA PRASAD MOOKERJEE INSTITUTE OF
SOCIAL SECURITY ADMINISTRATION, Employees’ Provident Fund Organisation
(Ministry of Labour & Employment, Govt. of India)
Sector – 16A, Near Old Faridabad Nation Highway Crossing,
Workshop For Employers/EPF Members Of Unexempted Establishments 18
How the Pension is calculated? - Main Features of EPS’95 & Practical Exercises - ANNEXUREANNEXUREANNEXUREANNEXURE---- I (1 to 80) I (1 to 80) I (1 to 80) I (1 to 80)
35
12.
Supply of Annual PF Statement of Accounts 36-37
IV. WHAT EMPLOYERS SHOULD KNOW
1. Role of Employer 38
2. Kind Attention - Employers 39
3.
Delivery of Employee’s Provident Fund Service in the establishment
- Who is a Model Employer
45
4. Bill of Rights of Employers 46
5. Duties of Employers 47
6. Forms and initial/Monthly/Annual Return required to be filed by
employer under EPF’52, EPS’95&EDLI’76 schemes.
48
7. Default in payment of dues by Employer-Consequences 52
V. GRIEVANCE REDRESSAL SYSTEM IN EPFO 53
VI. RATE OF INTEREST 54
VII. “REINVENTING EPF INDIA”
– Mordernisation Project taking leverage of Information Technology
1.
Salient features of the EPFO Business Process
Re-engineering (BPR) Project
55
2. EPFO’s Existing Legacy & New BPR System 57
3. Business Number (BN) 59
4. Social Security Number (SSN) 60
5.
Revised Establishment Monthly Return (R1) 61
6. Expectations From Employers Regarding Filing Of
Monthly Return R1
61A
7. Electronic filing of e-return R1
(Frequently Asked Questions & Answers)
62
8.
New Challans for remittance of dues by employers
(Frequently Asked Questions & Answers)
66
9. Frquently Asked Questions and Answers on SSN 68
10.
Revised Claim Forms for remittance of dues by employers
(Frequently Asked Questions & Answers)
70
i. New Form T1 (substituting Form19/31)
ii. New Form T2 (substituting Form 10D/10C)
iii. New Form T3 (substituting Form 10,10D&5IF)
iv. New Form T4 (substituting Form 13)
11. Banking Arrangements
i. Frequently Asked Questions & Answers for Employers 71
ii. Frequently Asked Questions & Answers for EPF Members 74
VIII. CLAIM FORMS (PRE-BPR)))) ---- ANNEXURE ANNEXURE ANNEXURE ANNEXURE –––– II (1 to 41) II (1 to 41) II (1 to 41) II (1 to 41) 75
i. Form 13- - (II (II (II (II----1)1)1)1)
ii. Form 14 (II(II(II(II----4)4)4)4)
iii. Form 19- (II(II(II(II----8)8)8)8)
iv. Form 20 (II(II(II(II----10)10)10)10)
v. Form 31- (II(II(II(II----14)14)14)14)
vi. Form 10C- (II(II(II(II----18)18)18)18)
vii. Form 10D (II(II(II(II----22)22)22)22)
viii Form 5 IF (II(II(II(II----32)32)32)32)
ix. Returns & Rejection-Points to be checked while filling up claim (II(II(II(II----36)36)36)36)
papers
-Transfer of PF from one establishment to another (II(II(II(II----39)39)39)39)
-Death Claims (II(II(II(II----40)40)40)40)
IX. Frequently Asked Questions(FAQs) 76767676----92929292
X . EPFO Offices in North Zone 93-100
Supplementary Material :
Compact Disc containing soft copies of all claim forms and
statutory returns’ proformae in both Pre-BPR and
Post-BPR scenario is being enclosed with this booklet .
EMPLOYEES’ PROVIDENT FUND ORGANISATION
The Employees’ Provident Fund Organisation is a statutory body under the Ministry of Labour,
Government of India, New Delhi. It administers Social Security Schemes framed under the Employees’
Insurance to industrial employees. These benefits are extended to all the establishments which employ 20
persons.
2. The Employees’ Provident Fund Organisation is an All India Organisation having its offices in all
state capitals, cities, towns and districts with its headquarters at New Delhi. It is administered by the
Central Board of Trustees – Employees’ Provident Fund comprising representatives from employees,
employers and the Central/State Government. At state level, a Regional Committee overseas the
compliance and service delivery.
3. The Employees’ Provident Fund is made applicable to an employee from the date of his joining the
establishment and recovers contribution at the rate of 12% of basic wages and the dearness allowance and
the employer also gives his matching share. Every member of Provident Fund is automatically governed
by Pension and Insurance Schemes. Similar to government employees, the industrial employees are also
eligible to avail the monthly pension after their superannuation and family pension in case of their death.
In case of death of a Provident Fund member, while in service, apart from his own savings under
Employees’ Provident Fund along with interest, the family is eligible for an insurance cover upto a ceiling
of Rs.60,000/-. During life time, a member can avail withdrawals from his Provident Fund for Housing,
Marriage, and Illness etc. The industrial employees numbering around 3.9 crores serving in 3.6 lakhs
establishments are covered by these benefits.
4. The bankers of the Employees’ Provident Fund Organisation is the State Bank of India. It collects
the EPF dues from employers through all its branches and also acting as portfolio manager for the
investment of EPF monies. To meet the administration cost, the Employees’ Provident Fund Organisation
levies administrative charges from employers. To realize the dues from defaulting establishments,
stringent penal provisions are enforced by Regional Provident Fund Commissioners.
5. The Employees’ Provident Fund Organisation, to develop the human resources has set up its own
Training and Research Wing known as National Academy for Training & Research in Social Security
(NATRSS). It imparts training to its own officers and staff and also to its valuable clients namely
employees and employers. This Academy has its units in all the four zones of the Organisation. A
systematic quality training is being imparted thereby the skill of the officers and staff is being improved in
administering the Social Security Schemes.
6. Employees’ Provident Fund Organisation has embarked for a modernization plan of Re-inventing
EPF India through Business Process Re-engineering. This approach will benefit the employees, employers
and the Employees’ Provident Fund Organisation in providing the world class service to all its clients.
Currently as part of the said project, the EPFO has started allotting National Social Security Number
(NSSN) to all the EPF Members which will ensure unique identity to them.
“SERVICE IS OUR MOTTO”
Chapter I
TO WHOM THE PROVIDENT FUND ACT APPLIES? (1) The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, is applicable to –
���� All establishments/Factories; included in the list of notified Industries and class of establishments. The minimum number of persons employed should be 20.
���� The Central Government after giving two months notice is empowered to apply the act to any establishment employing less than 20 persons, by notification in the official gazette.
���� ‘Person’ includes regular, casual, piece rated, part time, temporary and contract employees, etc.
���� The Provident Fund Act will come into force in an establishment from the very date of set up or commencement of business excepting certain class of establishments specified excluded under Section 16 of the Act.
���� It is the duty of an employer to seek registration under the Provident Fund Act from the nearest Provident Fund Office.
���� If the Provident Fund Act is not made applicable to an eligible establishment, any person may inform the name of such establishment and its location to the nearest Provident Fund Office.
���� Departments or branches of an establishment whether situated in the same place or different places shall be treated as parts of the same establishment for coverage under the Act.
���� The Act once applied will continue to apply to the establishment even if the number of employees fall less than 20 after coverage.
���� The Employees’ Provident Fund Act is applicable to the cinema theatres employing 5 or more workers.
(2) Registration – Issue of Provident Fund Code Number- to an establishment.
���� A Registration number, otherwise known as Code Number is issued to every establishment/Factory to which the Provident Fund Act is applied.
���� It is issued by the Regional Provident Fund Commissioner under whose jurisdiction the Establishment is located.
���� Normally, in case of a Factory establishment, the Code No. is allotted by the Regional Provident Fund Commissioner under whose jurisdiction the Factory is located; and not with reference to the location of the Head Office or the Administrative or corporate office.
���� A contractor who is employing 20 persons and engaged in the work of different establishments may obtain a separate code number. The compliance should be reported to all the establishments for which he is working as a contractor.
(3) Time Limit for issue of Code Number:
Code number to an establishment is issued within 3 days by the Regional Provident Fund Commissioner, on receipt of the following:-
���� The employer should submit the application in the prescribed form. It can be collected from the EPF Office or can be downloaded from the EPFO website viz. “www.epfindia.com”. Guidance/Assistance can be availed from any office of the Employees’ Provident Fund Organisation.
���� The application alongwith the proof of set up of establishment etc. to be submitted by the employer, duly enclosing a Bank Demand Draft/Pay Order towards the Employees’ Provident Fund dues along with the prescribed initial returns. (i.e. Form 5A/9 etc.)
���� The establishment will come into the compliance fold from the date of application of the Act to it.
(4) Voluntary application of Act: The following category of establishments can seek voluntary application of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952:-
(i) Any establishment which is not employing 20 persons (including contract workers); and
(ii) Establishments employing 20 persons but not falling in the list of notified industries/class of establishments.
Requirements:
(i) The employer and the majority of employees should give their willingness in writing, and the application should be forwarded to the Regional Provident Fund Commissioner concerned. The application form can be obtained from any Employees’ Provident Fund Office.
(ii) Request for application of the Act should be from a prospective date.
(5) Provident Fund Account Number: On becoming a member of Employees’ Provident Fund, each employee is assigned a Provident Fund number. This number shall indicate the Region (State), Regional Provident Fund Commissioners jurisdiction Code, Number assigned to the establishment followed by number allotted to the employee as indicated below. Region Code RPFC’s Jurisdiction No. assigned Employee
An account number given to an employee viz. HR/GRG/46400/956, denotes – HRis the Region, GRG represents the Office in which his accounts are kept, 46400 is the identification (code) number of his establishment, 956 is the account Number allotted to the employee.
--- --- ---
46400 GRG HR
---
956
(6) Importance of Account Number: The Account No. assigned to a member is important for all transactions with the Employees’ Provident Fund Organisation. All correspondence with the Provident Fund Office should necessarily bear the Code No. of the Establishment and/or the Account number of an employee, as the case may be.
The identification of an establishment and the Provident Fund member is possible only with reference to the code No. and Account No. assigned.
Whenever a member visits the Provident Fund Office, he should furnish his PF Account Number and Establishment Code Number. This will help the Employees’ Provident Fund Organisation to give prompt and speedy service. On changing the employment, the employee will be given a fresh account number. It is the duty of the employer to communicate the Provident Fund Account number to the employees.
YOUR PROVIDENT FUND GIVES YOU
PENSION AND INSURANCE COVER
Chapter II
EXEMPTION On application of the Provident Fund Act to an establishment, the employer may seek exemption from the operation of Provident Fund Scheme or Pension Scheme or Employees’ Deposit Linked Insurance Scheme or from all. The basic condition is that majority of employees should opt for the exemption and the benefits of the private Provident Fund/Pension Scheme should necessarily be at par or more than the Statutory Schemes. For exemption from EDLI Scheme, the insurance benefits payable to the employees should be more favourable than the Statutory Scheme. On grant of exemption, the Board of Trustees constituted by the Employer shall handle the Provident Fund matter relating to investment, maintenance of account and settlement of Provident Fund accounts etc. to the members – such establishments are known as exempted establishments. The exempted establishments should maintain their own Provident Fund recognized by Income Tax. The rate and manner of crediting interest should not be less than the one declared for the members of the unexempted establishments. An individual member and a class of employees may also seek exemption from the Employees’ Provident Funds Scheme, 1952 if he/they desire(s) to join the private Provident Fund scheme of the establishments. Similar provision is also available under Employees’ Deposit Linked Insurance Scheme, 1976. However, no individual and class of employees can avail exemption from the Employees Pension Scheme, 1995. The provisions of the ‘Act’ will continue to apply to exempted establishments, as the exemption is granted from the operation of Scheme/s only. Even after grant of exemption, the Regional Provident Fund Commissioner concerned shall monitor and control the functioning of an exempted establishment through regular inspections.
SERVICE IS OUR MOTTO
Chapter III 1. KNOW YOUR ‘PROVIDENT FUND’
Provident Fund:
���� Provident Fund is a Social Security Benefit to employees.
���� It is a compulsory saving by an employee during his employment.
���� It is meant for old age.
���� This is required to be availed on retirement from service.
���� An employee who contributes to Provident Fund is also eligible to receive a matching contribution from his employer.
���� Your Provident Fund is named as “Employees’ Provident Fund”.
Employees’ Provident Fund Act/Scheme:
���� Employees’ Provident Fund is set up under the Central Act viz. Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, in the year 1952.
���� It is applicable throughout the country (except Jammu & Kashmir).
���� It is applicable to almost all establishments falling under the industries/class of establishments, wherein 20 persons are employed.
���� In the case of cinema theatres workers, it is applicable to such establishments wherein 5 persons are employed.
���� Benefits to an employee are provided through the schemes framed under the ‘Act’.
���� Provident Fund benefits are provided under the Employees’ Provident Funds Scheme, 1952.
���� Pension benefits are provided under the Employees’ Pension Scheme, 1995.
���� Insurance Benefits are provided under the Employees’ Deposit Linked Insurance Scheme, 1976.
���� A member of Employees’ Provident Fund is automatically eligible for Pension and Insurance benefits without paying any additional amount of contribution.
Employees’ Provident Fund Organisation(EPFO):
���� Employees’ Provident Fund Organisation is administering the above Schemes.
���� Employees’ provident Fund Organisation is a statutory body under the Ministry of Labour, Government of India.
���� It is an all India Organisation having its offices in all State Capitals, Cities, Towns and Districts.
���� The Employees’ Provident Fund is administered by Central Board of Trustees – Employees’ Provident Fund.
���� The Central Board of Trustees, Employees’ Provident Fund consist of representatives from Employees’ Association, Employers Association and Central/State Governments.
���� Honorable Minister for Labour, Government of India is the Chairman of Central Board of Trustees, Employees’ Provident Funds.
���� The Chief executive of the Organisation is the Central Provident Fund Commissioner, New Delhi.
���� The Regional Provident Fund Commissioners are In-charge of the Regional/Sub-Regional/Sub-Accounts offices and monitor the compliance from all the establishments.
���� Regional Provident Fund Commissioners are maintaining the Provident Fund accounts and ensure collection of dues from employers and extending of various benefits to the Employees/Family members/Nominees.
Special Features of the Act/Schemes:
���� The Provident Fund, Pension and Insurance benefits are protected against attachment. It cannot be assigned or charged and shall not be liable to attachment under any decree or order of any court.
���� Employees’ Provident Fund as also Provident Fund of exempted establishments is a recognized Provident Fund under the Indian Income Tax Act, 1961.
���� An employee is eligible to avail the rebate on Income Tax on his Provident Fund Contributions subject to ceiling prescribed under the Income Tax Act.
���� Non payment of Employees’ Provident Fund dues by an employer may lead to recovery action by Regional Provident Fund Commissioners such as Prosecution, attachment of Bank Account/Property, arrest and detention etc.
���� Non payment of employees’ contributions recovered from the wages of the employees would constitute ‘Criminal breach of trust’ punishable under Section 406/409 IPC.
���� Employees’ Provident Fund dues paid after the due date (20th of the following month) will result in payment of interest & penalty by the employer.
���� Employees’ Provident Fund account of an employee can be transferred to any place in the country.
���� Employees’ Provident Fund may be withdrawn partially for certain specified purposes such as housing, marriage, illness, etc.
���� All Provident Fund Claims of the member are disposed by EPF Offices within 30 days.
���� Members are given the benefit of filing Nomination for Provident Fund/Pension and Employees’ Deposit Linked Insurance.
���� The annual Employees’ Provident Fund balance is informed to every employee by the Employees’ Provident Fund Office, before 30th September of each year.
���� The Employees’ Provident Fund Organisation has completed its Golden Jubilee in the year 2002.
���� The Employees’ Provident Fund Organisation is marching ahead to achieve its goal for total computerization and inter connection of all its offices in the country so as to ensure service delivery within 2-3 days and any where, at any time service and issue of Social Security No. to all its members.
The employees may go through the following chapters for more details concerning their eligibility for EPF membership, quantum of contributions, Nature of benefits eligible, procedure for availing benefits etc.
2. WHO IS ELIGIBLE TO BECOME A PF MEMBER?
� All employees, employed in an establishment (includes employees employed through contractors, daily rated, piece rated, temporary, casual etc.).
� “Excluded employees” need not be enrolled as PF members. � Excluded employees are –
a) Apprentice
b) Employee drawing the wages (Basic+ DA only) above Rs.6500/- as on the date of joining the establishment. (If the ‘wages’ of an employee is increased beyond Rs.6500 during the course of employment and after becoming a member of Employees’ Provident Fund, such employees are not to be treated as excluded employees. In such cases his contribution shall be restricted to his wages upto Rs.6500/-.)
c) Employees whose Employees’ Provident Fund Accounts were once fully settled after attaining 55 years of Age or on permanent settlement abroad.
� Employees drawing wages above Rs.6500/- can also become a member of the Fund, if the employer and employee give a ‘joint declaration’ to the Regional Provident Fund Commissioner.
� An employee at the time of joining an establishment should declare his previous Provident Fund Account Number/membership details to his present employer for communication to the Commissioner.
� All employees should be enrolled as a Provident Fund member from the date of joining the establishment/factory.
� The details of employees enrolled as a Provident Fund member is communicated through a monthly return in Form 5 to the Commissioner by the employer.
� The employer shall communicate the details of the members who leave the service, through a monthly return in Form 10.
An employee who is enrolled as a member of Provident Fund is automatically
eligible for the membership under the Employees’ Pension scheme, 1995 and Employees’ Deposit Linked Insurance Scheme, 1976.
In case an employee had attained the age of 58 or is in receipt of pension under
Employees’ Pension Scheme, 1995, he is entitled to become a member of Provident Fund only and not eligible to join the Pension Fund.
A member of Employees’ Provident Fund will retain his membership even after his
leaving from employment until his account is fully settled. He can avail the advance/withdrawal during the period he is out of employment. The benefit under EDLI Scheme is admissible only where the member died while in service.
• The membership under EPF shall cease on the day the Provident Fund dues are authorized for final payment by the Commissioner.
• A Provident Fund member who withdraws his Provident Fund dues and thus cease his membership under Provident Fund can continue his membership under Employees’ Pension Scheme, 1995, for availing the pensionary benefit.
• As long as a PF member retains his membership his PF balances will earn interest.
• There is no time limit for withdrawal of PF amount.
• When a PF member leaves one establishment and joins another establishment his PF account can be transferred to his new employer with a new account number.
• A person who joins an establishment, wherein the EPF Scheme 52 is already in force, should be enrolled as a member of PF, Pension and Insurance Schemes, from the date of his joining the establishment.
• An individual Provident Fund member can seek exemption from the membership of Employees’ Provident Fund Scheme, 1952 so as to join the company’s PF. The member may apply to the Commissioner through the employer. This facility is available to a class of employees, also.
YOU DERIVE YOUR SOCIAL SECURITY
BENEFITS THROUGH EPFO
3. BILL OF RIGHTS OF EMPLOYEES
• Right to membership of PF, Pension and EDLI Schemes for every employee of covered establishment drawing monthly Basic pay and D.A. upto Rs.6500/-
• To receive Annual Statement of Provident Fund account by 30th September of the following year.
• To obtain claim form free of cost from any Provident Fund Office.
• To obtain assistance/guidance from Public Relations Officers in filling up of forms.
• To submit claim applications in any office of EPFO and obtain acknowledgement.
• To get Partial Withdrawals settled within a maximum period of 30 days for specified purposes on its receipt in full shape.
• To get claim of Final Withdrawals settled within 30 days from the date of submission of claim in full shape.
• To get the accumulations transferred to your new account within 30 days on change of employment.
• To execute nomination for receiving provident fund accumulations/pension.
• To register grievance and get redressal.
• To approach officer-in-charge of any office for redressal of grievance without prior appointment.
• To receive guaranteed monthly payment of pension even in case of non- payment of dues by employer.
• To receive provident fund dues from Special Reserve Fund:
� In case of non-payment by employer of contribution deducted from wages. � In case of non-payment by the employer of establishment closed for more
than 5 years. � In case of fraudulent withdrawal from your account.
YOU DERIVE YOUR SOCIAL SECURITY
BENEFITS THROUGH EPFO
4. BENEFITS TO MEMBERS
i. BENEFITS UNDER EMPLOYEES’ PROVIDENT FUNDS SCHEME, 1952.
� Every employee is required to pay Contribution to the provident fund @ 12%/10% of the Basic Wages and Dearness Allowance.
� The Employer will also pay an equal amount of contribution. � While contributing to Employees’ Provident Funds, the member is eligible for
Income Tax rebate. � The Provident Fund accumulations of the member will earn compound interest,
calculated on monthly running balances. � The members are informed of the balance of their Provident Fund accumulation
every year through the Annual Statement of Accounts (Form 23). � The Provident Fund members can avail advances / partial withdrawals for
Housing, Marriage, Illness, Closure of establishment etc., through application in Form 31 which provides details and documents to be submitted.
� On retirement or on leaving service, the Provident Fund accumulations can be withdrawn in full by submitting application in Form 19.
� In case of premature death, the Provident Fund is payable to Nominee(s)/ family members by submission of Form 20 by each beneficiary.
� A member of Provident Fund also acquires membership under pension scheme. ii. BENEFITS OF PENSION SCHEME
• Pension is a boon to working class. It is no more the prerogative of Government employees.
• An Employee is eligible for Pension after 10 years of service.
• The Pension is payable on attaining the age of 58 years, whether he is in service or superannuated.
• Early Pension at reduced rate can be availed on leaving the employment, after attaining the age of 50 years.
• Where an employee is totally disabled and leaving service on account of disablement, Disablement Pension is allowed. No age and service stipulation to claim the pension.
� Pension is based on age, wage and service of an employee at the time of his leaving service.
• The payment of Pension is guaranteed and assured even in cases where the employer fails to deposit the pension contributions
• Every year, the pension quantum may increase.
• Wherever the Pension claims are received three months before the date of superannuation, the Regional Provident Fund Commissioner will deliver the Pension Payment Order on the day of superannuation.
• Apart from Pension Benefit, a member can commute upto one-third of his pension and in lieu of this, he will receive a lump-sum amount equivalent to 100 times of the commuted value of pension.
• A Pensioner may nominate a person to receive a lump-sum amount after his death, as Return of Capital.
• Family Pension is payable in case of death of a member: � after leaving the employment. � while in employment. � after drawing the pension
• To receive the Family Pension, only one application in Form 10-D is required to be submitted by the widow/widower, on her behalf and also on behalf of her/his children.
• Family Pension is payable even where the death occurs before 10 years of service. Thus, the minimum eligible service of 10 years is not applicable.
• On death of a pensioner. the Pension is automatically payable to the spouse (widow / widower).
• When a member dies as Bachelor or Spinster or where there is no spouse or children below 25 years, the Family Pension is payable to Nominee till his/her death.
• When there is no valid nomination, the Family Pension is payable to dependent father followed by dependent mother.
• In addition to Family Pension to Widow / Widower, Children below 25 years are also eligible for Pension simultaneously. It is payable to the married daughters also, below the age of 25 years.
• On death or re-marriage of widow / widower, Children will be given enhanced pension treating such children as Orphan.
• On behalf of the minor children the pension is payable to guardian.
• Any child in a family with total and permanent disablement will receive Children Pension till death.
• The monthly pension is payable through designated Banks and Post Offices on the first day of every month through the Savings Bank account of the pensioner.
• The pension can be drawn anywhere in India.
• The employees with less than 10 years of service on the day of superannuation may avail the benefit of withdrawal from Pension Fund.
• Where an employee has not served for 10 years on the date of leaving service and has not attained the age of 58 years, he may obtain a Scheme Certificate so as to continue his membership during un-employment period and the same can be used to count the previous service as and when he joins another establishment covered under the Act.
• The employees who have not contributed to the Employees’ Family Pension Scheme, 1971 can also join the Employees’ Pension Scheme before attaining the age of 58 years, at their option, after paying the contribution and interest upto-to-date.
• The contribution to Pension Fund can be made beyond the ceiling limit of Rs.6,500/- on the joint request of the employee and the employer so as to get more benefit.
• The Pension quantum is determined separately for the period of service from 1.3.1971 to 15.11.1995 as fixed amount. This is known as “Past Service” benefit.
• The Pension for the service rendered on or after 16.11.1995 is calculated through formula namely,
Pensionable Salary x Pensionable Service 70
• An employee on his superannuation is entitled for Pension (through the above formula) upto 60% of the pensionable salary. (Pensionable Salary would mean, the salary drawn by the employee for a period of 12 months prior to the date of superannuation).
BENEFITS TO MEMBERS BENEFITS TO FAMILY MEMBERS
Withdrawal Benefit
Scheme Certificate
Pension 1. Superannuation Pension 2. Early Pension 3. Disabled Pension
Commutation of Pension
Option for Return of Capital
Widow Pension Children Pension Orphan Pension Disabled Children Pension Nominee Pension Dependent Parent Pension Return of Capital to Nominee
iii. Benefits under Employees’ Deposit Linked Insurance Scheme, 1976
• A member of Provident Fund is also a member of Employees Deposit Linked Insurance Scheme.
• In case of death of an employee, while in service, insurance benefit upto Rs.60,000/- is payable to the Nominee / family members.
• No contribution is required to be paid by the employee for the insurance benefit. The employer alone is required to pay the contribution.
SUBMIT YOUR TRANSFER APPLICATION
PROMPTLY. DO NOT WAIT TILL YOUR
SUPERANNUATION
5. PAYMENT OF CONTRIBUTION (1) The Rate of contributions payable under the three Schemes (with effect from 22-9-97.) are as under:- Contribution is calculated on the Basic Pay, Dearness Allowance including cash value of food concession and retaining allowances , if any, payable to each member.
Name of the Scheme
Employees’ share Employers’ share
Employees’ Provident Fund Scheme, 1952
12 % *
3.67 % (amount in excess of
8.33%) (i.e 12% - 8.33%)
Employees’ Pension
Scheme,1995 NIL
8.33 % (No separate recovery. Diverted from & out of
Provident Fund Contributions only)
Employees’ Deposit Linked
Insurance Scheme,1976
NIL
0.5%
* 10 % In case of certain establishments (Jute, Beedi, Bricks, Coir industry, Gaur gum industries) and also to any establishment which employs less than 20 persons.
(2) Example: Method of calculating Provident Fund Contribution from the Monthly salary.
Employees’ Salary = Basic DA HRA City Conveyance Total
wages allowance etc. 4000 2000 500 100 200 6900 Attracts PF Deduction PF not to be deducted. i.e.: Rs.6000/- @ 12% = Rs.720/- Matching share payable by Employer : Rs.720/- Out of this, 8.33% of ‘wages’ is diverted to Pension Fund (i.e.) Rs.500/- Balance Rs.220/- will go to Employer’s share of Provident Fund.
The employer is also required to pay “Administrative Charges’ to the Employees’ Provident Fund Organisation @1.10% of wages of each employee under EPF and @ 0.01% under EDLI scheme. Thus, in this case, the EPF dues payable by member and employer are as under:-
Contribution Admn. Charges
Share
Wages
(Basic+DA) Rs.
Provident Fund Rs.
Pension Fund Rs.
EDLI* Rs.
PF Rs.
EDLI** Rs.
Employee’s 6000 720 --- --- --- ---
Employer’s --- 220 (720-500)
500 30 66 2 (Minimum)
Total
940 (EPF Scheme, 1952)
500 (Pension
Scheme,1995)
30 (EDLI Scheme, 76)
66 2
* The EDLI contribution and administration charges under EPF/EDLI are payable on the aggregate wages (Basic + DA including cash value of food concession and retaining allowances, if any, of all the employees. ** The contribution under EDLI Scheme is not required to be reflected individual wise in the contribution card in Form 3A
Over Time Allowance/Bonus/Commission/Lay Off Compensation/ Medical Allowance/Conveyance Allowance/House Rent Allowance/ City Compensatory Allowance/Cash Allowance/Honorarium/ Washing /Shoe Allowance
The Regional Provident Fund Commissioner may be contacted if any further doubts arise in this regard. (3) Member’s Contribution Card (Form 3A). The contributions recovered from each member alongwith Employers’ matching contribution are to be recorded on monthly basis in the contribution card of each member by the employer. This contribution card is to be prepared for each financial year commencing from April to March i.e. the wage period from March to February. This contribution card can be perused by the Provident Fund member, on demand once in every two calendar months. After the close of the financial year, before 30th April of each year, the Forms 3A are required to be sent to the Regional Provident Fund Commissioner concerned by the employer. Form 3A will be the basis for extracting contributions of a member shown in his Annual statement of accounts. (4) The employee’s share of Provident Fund contribution may be deducted by Employer from the wages of the member before disbursement. However, such deduction should be made only from the wages for which the contribution pertains. For example, the employee’s share of contribution for March 2006 should be deducted only from the wages for March 2006. In case where such deduction has been omitted to be made due to clerical or accidental mistake, the employer may deduct it from the subsequent wages with the written consent of the Enforcement Officer. ‘Wages’ means Basic wages, Dearness Allowance including cash value of food concession and Retaining Allowance if any. (5) A member is required to contribute compulsorily upto Rs.6,500/- of his wages and he may voluntarily opt to contribute beyond the wage ceiling of Rs.6,500/- (i.e. upto his ‘wages’) In such cases, an employer is not required to pay his own share of contribution above the wage ceiling of Rs.6,500/-. During the course of membership, if the ‘wages’ (Basic + Dearness Allowance including cash value of food concession and Retaining allowances) has crossed Rs.6,500/-, the member and employer are required to pay Provident Fund Contribution upto Rs.6,500/- only. In such cases the member cannot be treated as “excluded employee”. (6) If an employee is willing, he can also contribute to the fund in excess of the statutory limit of 10% or 12% of his wages, as the case may be. The employer need not pay in excess of the statutory limit. In Form 3A, the rate at which employees’ share of Provident Fund contribution was recovered should be indicated by the employer. (7) There is no separate contribution payable to the Pension Fund. The contribution towards Pension Fund is diverted from the employer’s share of EPF contribution at the rate of 8.33% of the wages. (8) An employee need not contribute under EDLI Scheme, 1976. The employer alone is required to pay the contribution. (9) The employer’s share of Provident Fund contribution should not be deducted from the wage of a member or recovered from the member.
(10) The Provident Fund contribution of contract employees and the matching contribution representing the employers share shall be payable by the contractor to the principal employer, every month. (11) The recovery of Provident Fund contribution will arise, only where the ‘wages’ are payable to an employee in a month. As such no employee can pay Provident Fund contributions when he is not drawing wages or during out of employment period.
EPFO IMPARTS TRAINING TO
EMPLOYEES AND EMPLOYERS
6. PROVIDENT FUND ADVANCES/WITHDRAWALS
A member of the EPF can avail the advance/withdrawal during the period of his membership, whether in employment or not, for the following purposes:-
(1) For financing Insurance policy (Please see the important note given in the relevant para)
(2) For Housing (purchase of site, house, flat, and construction, addition/alteration of house and repayment of housing loans).
(3) Financial assistance- on dismissal ,discharge, retrenchment and closure/lock out.
(4) For illness of the member/family member. (5) For marriage and post matriculation education.
(6) To meet the loss of property due to natural calamity. (7) Loss in wages due to power-cut. (8) Purchase of Equipment for physically handicapped. (9) To withdraw the Provident Fund one year before retirement.
How to avail Provident Fund advances?
The Employees Provident Fund is a Social Security scheme mainly meant for the post retirement period of the working class. Though it is the main objective, it also provides for withdrawing their Provident Fund money to meet out certain contingencies.
The Provisions envisaged under paragraphs 62 to 68-O of the EPF Scheme regulates the withdrawals/advances that a member can avail of himself during his period of membership.
There is a common application form for all the advances i.e. Form-31 except for withdrawal under Para 62 for financing Life Insurance Policies.
S.No.
FORM No. PURPOSE SCHEME PROVISIONS
1. Form 14
Application for financing a life insurance policy out of PF accumulation (Employee share) of the member
Para 62 of EPFS,52
2. Form 31
Common form for all types of advances/withdrawal for specified purposes from the fund (other than final settlement)
Para 68 of EPFS,52
The v
arious k
inds o
f advances/w
ithdra
wals
availa
ble
, conditio
ns o
f elig
ibili
ty, docum
ents
to b
e s
ubm
itte
d e
tc. are
giv
en b
elo
w:
Basic
co
nd
itio
ns
:
Refe
ren
ce
P
UR
PO
SE
C
ON
DIT
ION
S F
OR
EL
IGIB
ILIT
Y
AM
OU
NT
EL
IGIB
LE
D
OC
UM
EN
TS
Para
N
o.6
2
(Form
14)
To p
ay a
nnual
pre
miu
m
for
mem
bers
LIC
P
olic
y
1.
Serv
ice- 2 y
ears
and a
bove.
2.
Polic
y
to
be
assig
ned
in
favour of th
e C
.BT.
3.
Nom
inee
for
the
EP
F&
LIC
m
ust be identical.
Annual
Pre
miu
m
deducte
d
from
Mem
bers
Pro
vid
ent Fund
Account.
(See n
ote
belo
w)
Imp
ort
an
t N
ote
: I
n t
he i
nte
res
t o
f th
e
EP
F m
em
bers
, it
is a
dvis
ed
th
at
the
me
mb
ers
ma
y a
vo
id t
akin
g
a L
IC P
olic
y a
nd
pa
yin
g a
nn
ua
l p
rem
ium
w
ith
dra
win
g f
rom
th
eir
PF
acco
un
t. T
he
wit
hd
raw
al
fro
m P
F i
s n
ot
on
ly r
ed
ucin
g y
ou
r P
F b
ala
nce
s b
ut
als
o d
ep
rive
s y
ou
r fa
mil
y t
he f
ull q
ua
ntu
m o
f in
su
ran
ce b
en
efi
t p
ayab
le,
in c
as
e o
f p
rem
atu
re d
eath
of
an
em
plo
ye
e,
un
der
the E
DL
I S
ch
em
e,1
97
6,f
or
wh
ich
yo
u a
re e
nti
tle
d w
ith
ou
t p
ayin
g
an
y
co
ntr
ibu
tio
n.
Fu
rth
er,
aft
er
the i
ntr
od
ucti
on
of
pe
nsio
n s
ch
em
e
the f
am
ily i
s p
rote
cte
d,
fro
m t
he d
ate
of
de
ath
of
a P
rovid
en
t F
un
d
me
mb
er.
C
on
sid
eri
ng
th
es
e a
sp
ec
ts, P
F m
em
be
rs m
ay
des
ist
tak
ing
a L
IC p
olic
y w
ith
a v
iew
to
fin
an
ce f
rom
his
PF
acco
un
t.
68-B
(F
orm
31)
For
purc
hase
of
a
Dw
elli
ng
site
1.
Mem
bers
hip
– 5
years
. 2.
Min
imum
bala
nce
in
Em
plo
yees s
hare
Rs.1
000
3.
Pro
perty s
hould
be f
ree f
rom
encum
bra
nces.
4.
No
second
advance
is
allo
wed.
1.
Am
ount
availa
ble
in
P
rovid
ent
Fund a
ccount (B
oth
share
s) or
2.
Cost of site o
r
3.
24 m
onth
s b
asic
wages +
D.A
.,
Whic
hever is
the least.
Decla
ration
sig
ned
by
the
mem
ber
and
em
plo
yer
alo
ngw
ith F
orm
31.
68B
For
the
purc
hase
of
dw
elli
ng
House
or
ready
built
flat/constructio
n
of
dw
elli
ng
House.
1. M
em
bers
hip
– 5
years
. 2. M
inim
um
bala
nce
in
Em
plo
yees s
hare
Rs.1
000
3. P
roperty should
be free from
encum
bra
nces
No s
econd a
dvance is a
llow
ed.
1.
36 m
onth
s B
asic
wages +
DA
or
2.
am
ount
availa
ble
in
P
rovid
ent
Fund a
ccount (B
oth
share
s) or
3.
Cost of house/c
onstruction –
W
hic
hever is
the least.
Decla
ration
sig
ned
by
the
mem
ber
and
em
plo
yer
alo
ngw
ith F
orm
31.
68-B
(7)
68-B
(7B
)
For
additio
ns/
substa
ntial
altera
tions,
impro
vem
ents
to
the H
ouse.
- do-
1.
PF m
em
bers
hip
- 5 y
ears
2.
Min
imum
bala
nce
in
Em
plo
yees’ share
Rs.1
000
3.
After
5
years
from
th
e
com
ple
tion o
f th
e h
ouse.
Als
o a
llow
ed a
further w
ithdra
wal,
after 10 y
ears
.
1.
Cost of additio
ns, etc
. 2.
Em
plo
yees’
ow
n
share
, w
ith
inte
rest.
3.
12 m
onth
s B
asic
wages +
DA
W
hic
hever is
the least.
Decla
ration
sig
ned
by
the
mem
ber
and
em
plo
yer
alo
ngw
ith F
orm
31.
68-B
B
Repaym
ent
of
housin
g
loans
to the a
gency
1. 1
0 y
ears
of M
em
bers
hip
. 2. m
em
ber’s
ow
n
share
should
not be less than R
s.1
000/-
1.
Whole
or
part of
the lo
an to
be
repaid
. M
em
ber’s
and
em
plo
yer’s
contrib
utions in full/
36 m
onth
s P
ay +
D
A. W
hic
hever is
the least.
2.
Payable
direct to
the A
gency o
nly
.
1.
A
decla
ration
from
th
e
Mem
ber
with
the
deta
ils o
f site/ H
ouse/ Fla
t purc
hased.
2.
Letter
from
th
e
agency
show
ing
the
outs
tandin
g
am
ount
with
deta
ils.
68-B
C
Withdra
wal/financin
g
from
the fund for
the
purc
hase o
f dw
elli
ng
House/fla
t or
the
construction
of
dw
elli
ng
House
inclu
din
g
the
acquis
itio
n
of
a
suitable
site by th
e
mem
ber
1. 5
years
of m
em
bers
hip
2. m
em
ber’s ow
n share
should
not be less than R
s.2
0,0
00/-
1.
Whole
or
part of
the lo
an to
be
repaid
. M
em
ber’s
and
em
plo
yer’s
contrib
utions in full/
36 m
onth
s P
ay +
D
A. W
hic
hever is
the least.
2.
Payable
direct
to
the
Agency
only
.
1. A
decla
ration
from
th
e
Mem
ber
with t
he d
eta
ils
of
site/
House/
Fla
t purc
hased.
2. Letter
from
th
e
agency
show
ing th
e
outs
tandin
g
am
ount w
ith d
eta
ils.
68-H
(1)
Clo
sure
/Lock
out
of
facto
ry
or
where
an
em
plo
yee
not
in
receip
t of
pay
for
more
th
an
2
month
s.
(Non-r
ecovera
ble
Advance)
1.
Entire
fa
cto
ry
must
rem
ain
clo
sed for m
ore
than 1
5 d
ays.
2.
Em
plo
yees
must
be
unem
plo
yed.
3.
No c
om
pensation is p
aid
. 4.
Reason
for
clo
sure
/ non-
receip
t of w
ages m
ust be o
ther
than the s
trik
e.
Mem
ber’s o
wn s
hare
of contrib
utions
with inte
rest.
One
or
more
(n
on-r
ecovera
ble
) advance.
68-H
(2)
Clo
sure
/ Lockout of
facto
ry
(Recovera
ble
A
dvance)
1. P
eriod
of
clo
sure
m
ust
be
more
than s
ix m
onth
s.
2. A
fter
availi
ng
the
full
em
plo
yees’ share
. 3. E
mplo
yee
must
be
unem
plo
yed
4. N
o c
om
pensation p
aid
.
1.
100%
of
the a
mount
to t
he c
redit
of em
plo
yers
share
. O
ne o
r m
ore
re
covera
ble
advance
is
adm
issib
le.
2.
If th
e period of
clo
sure
exceeds
more
th
an
5
years
it
can
be
converted
into
non-r
efu
ndable
advance.
--
68-H
(1
A)
To
help
th
e
PF
mem
ber
dis
mis
sed/
dis
charg
ed/
retrenched.
1. D
ism
issal/
dis
charg
e/
retrenchm
ent
ord
er
should
have
been
challe
nged
in
a
court o
f Law
and p
endin
g.
(Non-r
ecovera
ble
Advance)
50%
of
the M
em
ber’s o
wn s
hare
of
contrib
utions w
ith inte
rest.
One
or
more
non-recovera
ble
advance is a
dm
issib
le.
Copy o
f th
e a
ffid
avit f
iled in
the
court
with
the
case
Num
ber of th
e C
ourt.
Para
68-
J
(Form
31)
For ill
ness
i) for M
em
ber
(ii) for fam
ily
1. H
ospitaliz
ation fo
r one m
onth
or m
ore
or
2. M
ajo
r surg
ical opera
tion o
r 3. T
reatm
ent
of
T.B
. le
pro
sy,
para
lysis
, H
eart
ailm
ent,
Menta
l dera
ngem
ent etc
.
Hospitaliz
ation
for
1
month
or
more
is
necessary
fo
r th
e
purp
ose o
f 2 &
3 a
bove.
1. M
em
ber’s
ow
n
share
of
contrib
utions w
ith inte
rest. o
r 2. C
ost
of
the
treatm
ent/
Hospitaliz
ation/ surg
ical opera
tion.
Or
3. A
mount re
queste
d b
y the m
em
ber.
or
4. 6
month
s B
asic
wages +
DA
, W
hic
hever is
the least.
1.
Em
plo
yers
’ certific
ate
on
non-a
vaila
bili
ty
of
ES
I benefits
or
ES
I auth
ority
’s c
ertific
ate
. 2.
Medic
al
certific
ate
from
th
e
Docto
r of
a
Hospital
in
support
of
illness and hospitaliz
ation
(as g
iven in the F
orm
31)
Para
68-
K
(Form
31)
(a)
For
the
marria
ge
of
self/
daughte
r/
son/
sis
ter/
bro
ther. O
r (b
) For
post
matric
ula
tion
education
of
the
son
or
daughte
r
1.
7
years
m
em
bers
hip
in
th
e
Fund
2.
Mem
bers
’ ow
n
share
of
contrib
utions m
ust not be less
than o
ne T
housand R
upees.
3.
Maxim
um
3
advances
are
allo
wed
during
the
entire
period o
f serv
ice.
4.
Applic
ation should
re
ach th
e
offic
e
befo
re
the
date
of
marria
ge.
1. 5
0%
of th
e e
mplo
yee’s
ow
n s
hare
of contrib
utions w
ith inte
rest
2. a
mount asked f
or
by the m
em
ber,
--
Whic
hever is
less.
(a) N
o d
ocum
enta
ry p
roof is
re
quired.
(b)
Certific
ate
/Fee
Receip
t from
th
e
educational
institu
te.
68-L
(F
orm
31)
Loss
of
Pro
perty d
ue t
o
flood,
earthquake
and rio
t.
1.
Mem
ber’s m
ovable
or im
movable
pro
perty
should
have
been
dam
aged.
2.
Sta
te G
ovt. m
ust
notify
the a
rea
as c
ala
mity h
it a
rea.
3.
Applic
ation should
be subm
itte
d
within
4 m
onth
s fro
m the d
ate
of
Notification.
1. 50%
of
ow
n share
of
contrib
utions
inclu
din
g inte
rest th
ere
on; or
2. Am
ount re
quired b
y the m
em
ber; o
r 3. R
s.5
000, w
hic
hever is
the least.
Copy o
f th
e S
tate
Govern
ment
notification.
68-M
(F
orm
31)
Advance
to
mem
bers
affecte
d
by
Pow
er cut.
1. C
ut
in th
e supply
of
ele
ctric
ity of
the F
acto
ry.
2. W
ages p
aid
must be 7
5%
or le
ss.
3. R
eduction in w
ages m
ust
be d
ue
to p
ow
er cut.
4. S
tate
G
ovt.
must
notify
th
e
enfo
rcem
ent
of
pow
er
cut
in th
at
are
a.
Only
one a
dvance is a
dm
issib
le.
1. O
ne m
onth
wages; or
2. M
em
ber’s o
wn s
hare
of
contrib
utions
with inte
rest th
ere
on; or
3. R
s.3
00/-
Whic
hever is
the least.
Em
plo
yer’s
certific
ate
in
th
e
Form
31.
68-N
(F
orm
31)
Purc
hase
of
equip
ment
by
handic
apped.
Docto
r should
certify
that
the
mem
ber is
physic
ally
handic
apped.
1.
Mem
ber’s o
wn s
hare
of
contrib
utions
with inte
rest.
2.
Cost of equip
ment
3.
Mem
ber’s B
asic
w
ages + D
A fo
r 6
month
s.
4.
Am
ount re
queste
d b
y the m
em
ber.
Whic
hever is
the least.
(No s
econd a
dvance w
ithin
3 y
ears
)
Docto
r’s
certific
ate
certifyin
g
the
expenditure
in
volv
ed
for
the purc
hase of
the re
quired
equip
ment.
68-N
N
(Form
31)
Withdra
wal
within
one year
befo
re
the
retire
ment.
1.
After
attain
ing
the
age
of
54
years
by the m
em
ber. o
r 2. W
ithin
one year
befo
re his
actu
al
retire
ment
on
supera
nnuation,
whic
hever is
late
r.
Upto
90%
of th
e a
mount sta
ndin
g to the
cre
dit o
f th
e M
em
ber.
Em
plo
yer’s certific
ate
on date
of re
tire
ment etc
.
68-N
NN
(F
orm
31)
Withdra
wal
after
attain
ing
the
age
of
55
years
1.
Any t
ime a
fter
attain
ing th
e a
ge
of 55 y
ears
by the m
em
ber
Upto
90%
of th
e a
mount sta
ndin
g to the
cre
dit o
f th
e M
em
ber
can b
e tra
nsfe
rred
to th
e LIC
fo
r in
vestm
ent
in “V
arishth
a
Pensio
n B
ima Y
oja
na”.
-----
AV
AIL
AD
VA
NC
ES O
NL
Y T
O M
EE
T T
HE
GE
NU
INE
PU
RP
OSE
22
7. HOW TO WITHDRAW PF AND OTHER BENEFITS? On leaving an employment : A member of EPF on his leaving employment on resignation etc., if he is not securing any employment in a PF covered establishment, may claim his PF accumulations by himself. For this purpose the member is required to submit the prescribed application in Form 19. This form is required to be filled in and given to the member by the employer on the date of his leaving the service. This form is required to be submitted to the Regional Provident Fund Commissioner after completion of 2 months from the date of leaving service. In case, the member secures another employment before submitting his application the account is required to be transferred.
In the following cases a member may submit the application immediately, without waiting for a period of 2 months.
1. On retirement from service after attaining the age of 55 years. 2. On retirement on account of total and permanent incapacity due to
bodily or mental infirmity. 3. Migration from India for permanent settlement abroad, or for taking
employment abroad. 4. Individual/Mass retrenchment. 5. Termination of service on V.R.S. 6. A female member who left the service on account of her marriage.
On death of a member. On death of a member, the Provident Fund amount is payable immediately to the nominee/s. If there is no valid nomination the Provident Fund amount is payable equally to all the eligible members of his family.
If both nominee and ‘family’ members are not applicable the legal heir is eligible to claim the Provident Fund dues of the deceased member.
In such cases the claim is to be preferred by the eligible person
through the Form 20. The claim should be forwarded only through the employer. In case of closure of establishment the claim may be sent through the authorised persons as per the list given in the application form. It is desirable that in such cases the claim may be got attested by the bank manager wherein the bank account is kept. In case if any employer refuses to attest and forward the application the fact may be conveyed to the Regional PF Commissioner/Grievance Officer/PRO and further guidance may be obtained.
23
Who can claim the benefits under the Employees’ Pension Scheme, 1995?
A member of Employees’ Provident Fund acquires membership under Pension Scheme also. A Provident Fund member who is eligible to withdraw his Employees’ Provident Fund dues can therefore avail the benefit due under the Pension Scheme also. It is not necessary to avail the pension benefit alongwith Provident Fund. A member can avail his Provident Fund dues only and retain his membership under the Pension scheme. However, a member who had attained the age of 58 years can avail the benefit under the pension scheme. Because, a member cannot retain his pension membership after the age of 58. A member of the Pension Scheme is eligible for the following benefits:-
(i) Withdrawal benefit (ii) Scheme Certificate (iii)Monthly Pension.
On death of an employee, while in service, the family (spouse and children) is eligible to receive monthly family pension i.e. for the widow/widower and also to children (below 25 years).
Thus the benefits under Pension Scheme can be claimed as under: It may be noted that the benefits under Pension Scheme are not at all related
to the contribution paid, on behalf of the member. It is calculated with reference to the age, wage and service of the member. Thus, the factors viz. Age and service determines the eligibility for a particular type of benefit, whereas the ‘wage’ factor enables the determination of quantum of benefit for monthly pension. Before applying for the benefit under Pension Scheme, the member has to verify his age as given to the Employees’ Provident Fund Office and his period of service. He may fall under any one of the following category to receive the benefit mentioned against each:-
Category (1)
Service (2)
Age (3)
Nature of benefit eligible (4)
1 Below 10 years Below 58 years Issue of Scheme Certificate. Or Payment of withdrawal benefit (at the option of member)
2 Below 10 years Attained 58 years Only Withdrawal Benefit
3 10 years and above
Below 58 years Only Scheme Certificate
4 10 years and above
Attained 58 years (whether continued in service or retired)
Monthly Pension to Member
5 10 years and above(Not in employment)
Completed 50 years of age
Eligible for Scheme Certificate Or
For Reduced(early) Monthly Pension.
6 Total and permanent disablement while in service
Below 58 years Disabled Pension to member
24
On Death of a member
Category Occurrence of death
Service Age Benefit
1 Death while in service
Paid at least one months’ contribution for the service rendered during a month
Below 58 years on the date of death
Monthly Pension to the Family (spouse and children). Where no eligible family (spouse and children below 25 years), Family Pension to Nominee for life. Where no family or no nominee, Family Pension to Dependent parents. Minimum Pension Rs.450/-.
2 Death after leaving the service (where the membership is retained)
10 years Below 58 years of age
Monthly Pension to the Family (spouse and children). Where no eligible family (spouse and children below 25 years), Family Pension to Nominee for life. Where no family or no nominee, Family Pension to Dependent parents. Minimum Pension Rs.450/-.
3 Death after leaving the service (where the membership is retained)
Below 10 years
Below 58 years of age
Family Pension to widow/widower/children. If there is no family member, one time benefit of Return of Capital is payable to Nominee or Dependent Parents.
4 Death while receiving Pension
Not relevant Not relevant Family Pension to only spouse and children (below 25 years) (nominee and Dependent parents are not eligible)
Claiming Withdrawal Benefit:- A member who is eligible to draw the withdrawal benefit is required to
submit the application in Form 10C, through the employer.
25
In case a member who has not rendered 10 years service, he is eligible to avail the withdrawal benefit or he may avail the Scheme Certificate, at his option. The option should be indicated in the application form. A note of caution: In the interest of the members of their family, it is not desirable to avail the withdrawal benefit; instead the member may avail the Scheme Certificate which will enable the family to receive family pension in case of his death before attaining the age of 58 years. On contrary, on his survival upto 58 years he will be given the withdrawal benefit, on exit from the membership of Employees’ Pension Scheme, 1995.
Claiming of Scheme Certificate A member who is required to avail the Scheme Certificate compulsorily (when the service is 10 years and above) and the option for Scheme Certificate should be specifically mentioned in the application form. Those who opt for Scheme Certificate instead of Withdrawal Benefit are required to submit the application in Form 10C, through the Employer.
The Scheme Certificate received from the Regional Provident Fund Commissioner should be preserved carefully. It should be submitted to the employer, if the member seeks employment before the age of 58 years. In case of death of the Member, the family can surrender the Scheme Certificate and avail the Family Pension, as admissible under the Pension Scheme.
Other benefits under Pension Schemes: Commutation: A member who is eligible to claim Monthly Pension is also eligible to avail the benefit of commutation. For this purpose, he has to forego upto 1/3rd of the pension amount and in lieu thereof, he will get 100 times of the amount so commuted. This will be given only on a specific option mentioned in the application form. Return of Capital
It is a lump-sum benefit payable after death of the pensioner or to the member himself. It can be opted only by the Member while applying for his Pension. He is required to surrender a portion of his monthly pension (10% /12 ½%) and in lieu thereof, 100 times the original monthly pension is payable on death of member to the nominee given in the application form. There are 3 options available to a member in respect of Return of Capital, as under:- Option 1. Member – Pensioner will draw 90% of his original monthly pension,;
On the death of the pensioner, the nominee will get 100 times of the original Monthly Pension. Option 2. Member will draw 90% of Original Monthly Pension.
On his death, widow will draw 80% of the original Monthly Pension (This is in addition to the normal widow pension). On death of the widow/remarriage, the nominee will receive 90 times of the original monthly pension.
26
Option 3. 87.5% of original monthly pension is payable to the member pensioner for a fixed period of 20 years. It will cease thereafter. At the end of 20 years, the member pensioner, (if he is alive) otherwise his nominee, will be given 100 times the original monthly pension. Claiming of Pension.
A member or the beneficiary can claim Pension through an application in Form 10D in the following cases.
1. On total and permanent incapacity (100% disablement) (without any restriction of service period).
2. On attaining the age of 58 years with eligible service of 10 years.
3. After rendering 10 years service and on leaving the service between 50-57 years. (Reduced Pension can be opted).
4. In case of death of a member while in service or away from service, the eligible family members/nominee/Dependant parents for availing family pension.
5. The Form 10D should be forwarded only through the employer (except in the case of closed establishment)alongwith the documents mentioned. The age of the children should be supported by the school certificate or any valid document.
6. To claim the family pension, the widow/widower may submit only one application on his/her behalf and on behalf of two children. Pension once sanctioned will automatically be passed on to all the eligible beneficiaries, as indicated in the Pension Payment Order.
7. On grant of Pension, the member will be informed. He may collect his copy of Pension Payment Order from the disbursing agency (Bank/Post Office).
Assurance benefit under Employees’ Deposit Linked Insurance Assurance benefit under EDLI scheme is payable only in the case of death of an employee-member while in service. The person(s) who are eligible to Provident Fund benefits are entitled to receive the EDLI benefits. Benefits under the Employees’ Deposit Linked Insurance Scheme The amount of assurance benefit payable is an amount equal to the average balance in the account of the deceased in the Fund during the preceding 12 months or during the period of his membership whichever is less, except where the average balance exceeds Rs.35,000/- the amount payable shall be Rs.35,000/- plus 25% of the amount in excess of Rs.35,000/-
27
, subject to a maximum of Rs.60,000/. The form prescribed for claiming the Assurance benefit under EDLI Scheme,1976 is Form 5(IF).
PENSION IS GUARANTEED.
DISBURSED ON FIRST OF EVERY
MONTH.
28
8. TRANSFER OF PROVIDENT FUND ACCOUNTS
S.No. FORM No. PURPOSE SCHEME PROVISIONS
1. Form 13 (Revised)
Application for seeking transfer of account by a member.
Section 17-A of the Act/ Para 57 of EPFS, 52
A Provident Fund member, on leaving an establishment and joining another establishment (Whether the Act is applicable or not) can seek transfer of his Provident Fund balances to his new Provident Fund account opened in the transferee establishment. This application should be submitted through the present employer to the Regional Provident Fund Commissioner concerned for effecting the transfer. The Regional Provident Fund Commissioner is required to effect the transfer within 30 days. A copy of the transfer certificate (Annexure K) will be sent to the member concerned. The member should also ensure that the amount transferred to his present account number is included in the Provident Fund Annual Statement of account of the year in which transfer was effected. Any delay in transfer of Provident Fund accounts should be brought to the notice of the Regional Provident Fund Commissioner concerned. The physical transfer of fund is allowed only in the case of Employees’ Provident Fund account. There is no physical transfer of funds in the case of the amount contributed towards the pension fund. The details of the membership under Pension Scheme are alone indicated in the Annexure K.
GIVE YOUR NOMINATION AND SECURE
YOUR FAMILY
29
9. MODE OF PAYMENT OF BENEFIT – Provident Fund/Pension/ Employees’ Deposit Linked Insurance Schemes.
The benefits payable to the EPF members towards Advances/Withdrawal, Final payments are normally paid through anyone of the following modes of payment at the option of the claimant. 1) By Postal Money Order, 2) Through Savings Bank Account in a Bank/Post Office (Kept on Payee’s name). Payment by Money Order will be made where the amount due for payment is only upto Rs.2000/-. Beyond this the payment will be made by cheque and sent direct to the Bank in which the Member’s account is kept. Money Order Commission to be borne by the Employees’ Provident Fund Organisation. Final payments made by Money Order upto Rs.500 only, the Money Order Commission will be borne by Employees’ Provident Fund Organisation and not deducted from the amount payable to the member. If opted for payment by deposit into the Bank, the cheque will be sent direct to the bank concerned under intimation to the claimant. The Organisation is also making payment through Electronic Clearance System, wherever the facility is available so as to expedite the crediting of the amount into the member’s account. The above modes of payment is allowed for payment of EDLI benefit and for payment of withdrawal benefit under Pension Scheme. Payment of Pension: The monthly pension is payable through the designated bank selected for this purpose. The scheduled banks such as UTI, ICICI banks are also included as the disbursing agency for payment of pension. The pensioners may opt for any of the Bank/Post Office. The Statewise list of designated banks/post offices who are the disbursing agencies for payment of pension to eligible EPF members is as follows :
30
STATE-WISE NAME OF THE DISBURSMENT AGENCIES
S.No. NAME OF THE
REGION
NAME OF THE DESIGNATED
BANK
POST OFFICES
1. ANDHRA PRADESH 1. ANDHRA BANK
2. STATE BANK OF INDIA 3. SYNDICATE BANK
4. INDIAN BANK
5. HDFC BANK
6. ICICI BANK 7. UTI
POST OFFICES
2. BIHAR
(including
JHARKAND)
1. PUNJAB NATIONAL BANK
2. STATE BANK OF INDIA
3. BANK OF INDIA
4. HDFC BANK
5. ICICI BANK 6. UTI
POST OFFICES
3. DELHI 1. PUNJAB NATIONAL BANK
2. STATE BANK OF INDIA 3. INDIAN BANK
4. HDFC BANK
5. ICICI BANK 6. UTI
POST OFFICES
4. GUJARAT 1. DENA BANK
2. STATE BANK OF INDIA 3. INDIAN BANK
4. HDFC BANK
5. ICICI BANK 6. UTI
POST OFFICES
5. HARYANA 1. PUNJAB NATIONAL BANK
2. STATE BANK OF INDIA
3. HDFC BANK
4. ICICI BANK 5. UTI
POST OFFICES
6. HIMACHAL
PRADESH
1. PUNJAB NATIONAL BANK 2. STATE BANK OF INDIA
3. HDFC BANK
4. ICICI BANK 5. UTI
POST OFFICES
7. KERALA 1. CANARA BANK
2. STATE BANK OF INDIA 3. SYNDICATE BANK
4. INDIAN BANK
5. HDFC BANK 6. ICICI BANK
7. 7. UTI
POST OFFICES
8. KARANATAKA 1. CANARA BANK
2. SYNDICATE BANK
3. STATE BANK OF INDIA
4. STATE BANK OF MYSORE
5. HDFC BANK
6. ICICI BANK
7. 7. UTI
POST OFFICES
31
9. MAHARASHTRA
(Including GOA)
1. BANK OF INDIA
2. PUNJAB NATIONAL BANK
3. STATE BANK OF INDIA
4. HDFC BANK
5. ICICI BANK 6. UTI
POST OFFICES
10. MADHYA PRADESH
(Including
CHATTISGARH)
1. PUNJAB NATIONAL BANK 2. STATE BANK OF INDIA
3. HDFC BANK
4. ICICI BANK 5. UTI
POST OFFICES
11. NORTH EAST
REGION
1. PUNJAB NATIONAL BANK
2. STATE BANK OF INDIA
3. HDFC BANK
4. ICICI BANK
5. UTI
POST OFFICES
12. ORISSA 1. BANK OF INDIA
2. STATE BANK OF INDIA
3. UCO BANK
4. HDFC BANK
5. ICICI BANK 6. UTI
POST OFFICES
13. PUNJAB 1. PUNJAB NATIONAL BANK 2. STATE BANK OF INDIA
3. HDFC BANK
4. ICICI BANK 5. UTI
POST OFFICES
14. RAJASTHAN 1. S.B OF BIKANER & JAIPUR
2. PUNJAB NATIONAL BANK
3. HDFC BANK
4. ICICI BANK
5. UTI
POST OFFICES
15. TAMIL NADU
(Including
PONDICHERRY)
1. INDIAN BANK
2. STATE BANK OF INDIA
3. INDIAN OVERSEAS BANK
4. HDFC BANK
5. ICICI BANK 6. UTI
POST OFFICES
16.
UTTAR PRADESH
(Including UTARANCHAL)
1. PUNJAB NATIONAL BANK 2. STATE BANK OF INDIA
3. HDFC BANK
4. ICCI BANK
5. UTI
POST OFFICES
17. WEST BENGAL 1. PUNJAB NATIONAL BANK
2. UNITED BANK OF INDIA
3. STATE BANK OF INDIA (for
North Bengal only)
4. HDFC BANK
5. ICICI BANK
6. UTI
POST OFFICES
32
Life Certificate and Non-remarriage Certificate. The pensioners are required to submit their Life Certificate and Non Re-marriage Certificate to the bank concerned in the month of November every year for continued drawal of pension. Failure to submit this will result in stoppage of Pension.
AVOID WITHDRAWAL BENEFIT. AVAIL
SCHEME CERTIFICATE (PENSION)
33
10. IMPORTANCE OF NOMINATION FORM
Every employee who joins the EPF Scheme is required to furnish a declaration and Nomination Form in the prescribed Form No.2 (Revised) to his employer for onward transmission to the Regional Provident Fund Commissioner concerned. This nomination form enables the member to give details of his nominee for Provident Fund and list of family members and nominee for Pension Scheme. There is no separate nomination form for EDLI Scheme as the PF beneficiary is eligible to receive the EDLI benefit. The nomination is considered as a very vital document for each PF member because in case of death of a Provident Fund member, the Provident Fund balances are payable to the nominee in the first instance. Only in case there is no valid eligible nominee, it is distributed to the family members in equal shares. In the absence of nominee as well as eligible family members, the amount will be distributed to the legally entitled persons. In order to ensure that the Provident Fund dues are paid to the beneficiary, it is the duty of every member to ensure that his nomination is filed and updated as and when contingency arises.
Nominee for Provident Fund:
A member having a ‘Family’ viz. wife/husband, children and dependent parents(according to the definition of family) is required to nominate one or more persons belonging to his family only. If the member has no family members, he can nominate any person/s; but if the member acquires a family, such nomination is deemed as invalid. The member should make a fresh nomination. Nominee For Pension In the case of nomination for pension it may be noted that the family pension is automatically payable to the family (i.e.) Widow or Widower along with two children (below 25 years). As such, as long as the family members survive as on the date of death of the member the pension is payable to them only and the nomination will have no effect. Where there is no eligible family member(i.e.) Widow or Widower and Children below 25 years, as on the date of death of a member then the family pension is payable to the nominee as given in Form 2. Hence, it is necessary to file a nomination The nominee should be from the ‘family’ i.e. the nominee for Pension need not be the spouse, as he/she is an automatic beneficiary. Hence, any child (below 25 years) should be nominated for Pension. The nomination for pension should be in favour of one person only. The dependant parents will be eligible for pension only where there is no eligible family member or nominee.
34
It is once again reiterated that it is incorrect and invalid to nominate the spouse of the member as a nominee because on death of the member, the family pension is automatically payable to the spouse. (Widow/Widower) Importance of Age/Date of Birth: After the introduction of the Employees’ Pension Scheme, 1995 the age/Date of Birth is very vital for determining the date of eligibility for pension. Similarly, the age/Date of Birth of the children is also equally important. Hence, a pension member should ensure that his correct date of birth is communicated to the Regional Provident Fund Commissioner concerned through his employer. While applying for the pension the member should also indicate in the application form No.10-D the exact date of birth of his children, failing which the processing of pension claim will be bound to be delayed.
GIVE YOUR NOMINATION AND SECURE
YOUR FAMILY
35
11. HOW THE PENSION IS CALCULATED? As already explained, no running individual member account is kept to credit and account for the Pension contribution received. This is on account of the fact that the payment of pension is not depended upon the quantum of contribution received. It purely relates to the age of the member on entry and exit, wages of the member on exit and the period of service rendered by the member. The Pension quantum is calculated as under:- The pension to employees on their superannuation has come into force only from 16th Nov.,1995.For this purpose, the contribution payable on behalf of each member is fixed as 8.33% of wages. This amount is diverted from the EPF contribution paid by the employer @ 12%/10% of wages. Prior to introduction of pension scheme, the members were contributing to the family pension scheme i.e. from 1.3.1971 to 15.11.1995. The contribution paid by the member and employer @1.16% of wages and Central Govt. had contributed 1.16%. Thus the total contribution to pension fund was 3.5%. only.
Keeping the above in view, the quantum of pension payable to a member is calculated separately for the period from 1.3.1971 to 15.11.1995 (old scheme) and from 16.11.95 to the date of exit (new scheme).The sum total of benefits arrived for the said two periods is being given as pension. The quantum of pension at a reduced rate is allowed to those who opt to draw pension between the age of 50 and 57,after exit from service. The main features of EPS-95 & Practical exercises on calculation of pension benefits are given in Annexure –I ( I-1 to I-80 ) Pension Payment Order
The pensioner will be issued a copy of the Pension Payment Order through the paying branch of the disbursing agency (designated bank/Post Office). This Pension Payment Order will reflect the quantum of member pension, value of commutation payment, value of return on capital, list of beneficiaries after the death of the member, quantum of family pension, quantum of return of capital etc. wherever the life certificate is not received from a pensioner before November of each year the pension will be stopped from the month of January.
PROVIDENT FUND IS YOUR HARD EARNED
SAVINGS. RETAIN IT TILL YOUR
SUPERANNUATION
36
12 . SUPPLY OF ANNUAL PF STATEMENT OF ACCOUNTS
The Regional Provident Fund Commissioner shall send the individual members EPF Annual Statement of Accounts Slips pertaining to every Financial year (in Form-23) to the employer before 30th of September of the following year for delivery to every EPF member of the Establishment. The Employer shall distribute the same to the respective members, get acknowledgements for the same from each member and keep the acknowledgement with him, duly intimating the position to the Regional Provident Fund Commissioner. Members should satisfy themselves to the correctness of the details indicated in Form-23 slips and any error should be brought to the notice of the Commissioner through the Employer within 6 months of the receipt of the statement. The Provident Fund Annual Statement of Account will reflect the Provident Fund balances only. It will not indicate the contributions paid towards Pension Fund. There is no separate Statement of Account issued under the Pension Scheme. It is on account of the fact that the Pension payment is not based on the quantum of contribution paid on behalf of the member. It relates with reference to age, wage and service of the member. There is no running account kept by the EPF office for Pension account. It may be noted that even in case of default in payment of pension contribution by the employer, the members are assured of their pension payment. This guarantee is provided under the provisions of the Employees’ Pension Scheme, 1995. In view of the above, the Provident Fund Annual Statement of Account will reflect only the EPF contributions recovered at the rate of 12% or 10% of wages under employee’s share in full and 3.67%/1.67% of wages under the employer’s share (i.e. 12% - 8.33% diverted to Pension Fund). Wherever the employer has failed to deposit the Employees’ Provident Fund dues, the same will not be included in the statement of Account. The employer should indicate the period of non contributory service for which no wages received in the Form 3A which will be kept on record. The specimen format of Annual Provident Fund Statement of account supplied to the Provident Fund Members is given below:
37
FORM 23
Pension Fund: Non-Contributory period: O.B.: Days Current Year days C.B days
For Regional Provident Fund Commissioner_(Signature)___
Instructions: (Reverse of Form 23):
(i) Any change in Nomination should be communicated in Form 2 (Revised)
(ii) Any error noticed in the Account Slip should be communicated within six months of the receipt of this Account Slip.
(iii) The amount of Contribution do not include Pension fund contribution.
Account No. Name The Employees’ Provident Fund Scheme, 1952
Subscriber’s Annual statement of accounts for the year ------
• All employees including contract employees are to be enrolled as Provident Fund members from the date of their joining your establishment.
• Forward the details of employees enrolled as Provident Fund members before 15th of every month to the Regional Provident Fund Commissioner through Form – 5.
• Obtain the Nomination in Form – 2(R) from the member and forward it alongwith Form – 5.
• Furnish the details of employees leaving your service, before 15th of every month through Form – 10 alongwith the contribution card in Form – 3A.
• Pay the Provident Fund / Pension / Insurance Fund contributions and Administrative charges before 15th of each month (No Penal Damages and interest is payable wherever the dues are remitted within the grace period of 5 days i.e. on or before 20th of each month) so as to AVOID payment of interest & penal damages on belated deposit and to prevent action of prosecution, imprisonment, sale of movable / immovable property, attachment of Bank Account etc.,
• Submit the Annual contribution card of each member in Form – 3A and Form – 6A before 30th April of each year.
• Forward the applications for Advance / withdrawal and Final Settlement of Provident Fund account, Pension and Insurance benefits within 5 days.
• In the case of resignation of an employee, the Provident Fund is payable after 2 months. In such cases, the Form 19 is to be completed duly attested by the employer or authorised officer and deliver it to the employee on the day of his leaving the service. The employee may submit to Regional Provident Fund Commissioner after 2 months, if he is not securing employment.
• Distribute the Provident Fund Annual Statement of Accounts in Form – 23 to all members immediately on its receipt from the Regional Provident Fund Commissioner and to send a confirmation to the Employees’ Provident Fund Organisation.
COMPLIANCE BY THE EMPLOYER ENSURES SOCIAL
SECURITY BENEFITS ARE PROVIDED TO THE EMPLOYEES
39
2. KIND ATTENTION - EMPLOYERS
FORWARDING THE CLAIMS TO THE REGIONAL PF COMMISSIONER
BEFORE FORWARDING OF CLAIMS TO THE RPFC., PLEASE VERIFY
THE CLAIM FOR ITS CORRECTNESS AS PER THE CHECKLIST GIVEN
BELOW
CHECKLIST FOR CLAIMS IN FORM 19 (PROVIDENT FUND)
(Form to be used by a major member of the EPF Scheme)
(Form to be used by a major member of the EPF Scheme)
1) Whether all the columns in the Form 19 are correctly and completely filled in
(as per the details furnished to this office), in ink, without any overwriting.
2) Whether the reason and date of leaving service have been correctly filled in,
with reference to Form 10 already given, in the appropriate columns in the
Form 19.
3) Whether the member has furnished his full postal address, with the postal pin
code number, for communication and for payment of amount, if preferred by
postal money order.(Money Order is issued only where the amount payable is
below Rs.2000/-)
4) If the payment is preferred by account payee cheque, through Bank, please check to:
� Whether the member has got a Savings Bank account in any of the branches of
a Nationalised/Scheduled/Co-operative Bank/Post Office.
� Whether the account so opened is only an individual account and not a joint
account.
� Whether the name, branch and address of the Bank have been clearly
furnished in the Form 19. Any correction should be attested by the
Employer.(Attach the first page of Savings Bank passbook showing the name
and account number of the member)
� Whether the member has completed the advanced stamped receipt (furnished
in the Form 19 itself) and appended his signature on one rupee revenue stamp
affixed in the relevant portion.
5) If the reason for leaving service is “Left”, “Resigned”, etc., ensure that 2
months period has been completed from the date of leaving service to the date
of preference of the claim. However this will not be applicable if the member
has completed 55 years of age or being a female member resigned for her
marriage.
6) In case the member is an illiterate, whether thumb impression of the member is
affixed at the relevant portion.
7) Whether Form 5 and Form 10 particulars are reproduced in the claim Form.
8) a) Whether Form 3A, if any, for the broken period of currency is enclosed.
b) Whether Form 3A for the previous currency period is sent, if not, enclose
Form 3A for the previous years also.
c) Whether Form 3A is completed and signed and reasons for ‘Nil
’contribution is given.
40
d) Whether the period of non-contributory service is indicated where the
wages are not drawn for a full month.
9) Whether the remittances are made upto date and returns submitted. If for any
reasons, any remittance is outstanding in respect of the claimant, the amount
due on his/her account needs to be indicated.
10) Whether the specimen signatures of the authorised officials of the
establishment are already submitted to the Regional Provident Fund
Commissioner. If not, it shall be done and be updated whenever there is
change in the officials.
11) Whether the claim has been attested by the authorised officials of the
establishment, duly affixing his official seal and date.
CHECKLIST FOR CLAIM IN FORM-20 (PROVIDENT FUND)
(Form to be used by a nominee/a legal heir in case of death of a member)
Note : The Points given below are in addition to common points such as attestation,
Form 3A, mode of Payment, completion of form etc., as given in the checklist for
claims in Form 19.
1) In case of death of the member, whether death certificate in original is enclosed.
2) Whether complete details of the deceased member/the claimant are furnished
in the appropriate columns of the Form 20.
3) Whether the claim has been preferred by the nomine(s) as per the nomination
Form 2 as Executed by the deceased member.
4) In case the member has not executed any valid nomination during his life time, ensure that the claim is preferred by eligible member(s) of the family or
eligible legal heir of the member, as the case may be. (In such case, a list of
members of the family duly certified by the employer or the Revenue official
or an affidavit by the family members sworn before a Notary Public should be
enclosed).
5) In case, the parents of the deceased member are included in the list of family members, whether or not the parents were dependent on the member is to be
specified.
6) In case of the claims preferred by any person other than natural guardian on behalf of the minor member/nominees/legal heirs, ensure that the required
Guardianship certificate etc. are enclosed.
7) Whether the age and marital status of the family members/Legal heirs are
furnished as on the date of death of the member and NOT on the date of the
claim.
41
8) Separate application should be preferred by each eligible claimant. In the case of minor, guardian is to prefer the claim.
CHECK LIST FOR FORM – 5(IF)
(To claim EDLI Benefits by the PF beneficiary where the member died while in
service)
1) Whether the Xerox copy of death certificate is attested by the authorised
signatory.
2) Whether the beneficiary who prefers a claim under form 5(IF) is the same
person who is entitled to receive the Provident Fund accumulations of the
deceased member.
3) Whether the date and reason for leaving service given in the application tally
with theForm-10 already submitted.
4) Whether the Death while in service certificate is furnished by the Employer.
5) Whether the contributions (both shares) for 12 months preceding the date of
death furnished in page 3 of the form 5(IF) tally with the figures for the
respective period shown in the Form 3A already submitted/to be submitted.
6) Whether claims preferred under EPFS ’52, EPS 95 and EDLIS ’76 have been
submitted simultaneously.
7) Whether all the general check points for preferring a claim are observed such
as filling the form without any omission and overwriting, furnishing the
correct address and mode of payment, the bank details etc
CHECK LIST FOR CLAIMS IN FORM –10C
(Form to be used by a member of the Employees Pension Scheme 1995 for claiming
Withdrawal Benefit/Scheme Certificate)
(Form to be used by a member of Employees Pension Scheme 1995 for claiming
Withdrawal Benefit/Scheme Certificate)
1) To check whether all columns in the claims are properly filled. 2) Whether the particulars are written clearly without any overwriting or cutting.
Correction, if any, is attested.
3) Whether the member has appended his signature on One Rupee Revenue
Stamp affixed in the relevant portion. (To be given where withdrawal benefit
is admissible and opted for payment by cheque).
4) Whether the details of wages and period of non-contributory service were
already informed through Form 3A.
5) If the member is not eligible for pension and has rendered 10 or more years of eligible service, he/she is not entitled for option but Scheme Certificate only
will be issued.
6) Wherever the member is having less than 10 years’ eligible service, he/she
may be advised to opt for Scheme Certificate instead of Withdrawal Benefit.
7) Option to be specifically stated either for Scheme Certificate or Withdrawal
Benefit.
42
8) In case of opting for “Scheme Certificate”, it is not necessary to furnish the Savings Bank Account and enclosing of attested photos.
9) These points are in addition to common points furnished under “Checklist for claim in Form-19”.
CHECKLIST FOR CLAIMS IN FORM-10D
(Form to be used for claiming Superannuation Pension, Retirement Pension, Short-
service Pension, Disablement Pension, Widow Pension, Children Pension and
Orphan Pension)
1) To check whether the application in Form-10D has been preferred in duplicate in case pension is to be drawn in other SRO/SAO or other Region.
2) Whether all columns are properly filled in without any overwriting.
3) Whether the application in form-10D has been attested by the employer or his
authorised official with his official seal and date.
4) Whether the date of birth of the member has been furnished as per records
already submitted to the RPFC.
5) In case of death of the member (For Widow, Children or Orphan Pension)
ensure that the death certificate is submitted in original and family members’
certificate is furnished.
6) The descriptive roll/finger impressions/Specimen signatures of the claimant are obtained in the prescribed forms (in duplicate) and attested by the
employer.
7) Whether 3 copies of Passport Size photograph of the member with spouse
(taken together/or claimant) are submitted and the employer has attested with
seal on the back side of the Passport size photos duly furnishing the name and
Account number of the member below the age of 25 years irrespective of their
marital status.
8) Whether the birth certificate of the children of the member, is submitted in
original, with one Xerox copy duly attested by the employer.
9) Whether the Personal marks of Identification, if any, on the hand /face or body
of the claimant is furnished.
10) The monthly Pension can be disbursed to the Pensioner through the designated Banks such as State Bank of India and other Nationalised Banks or HDFC (or
ICICI) or Post Offices and he has furnished Savings Bank Account Number
and complete postal address of the Bank/Post office in the relevant column of
the Form-10D.
11) Whether the claimant has exercised any option for Return of Capital, in the
relevant column of Form-10D. If so, please specify the Para such as 13(1),
13(2) or 13(3). In case of opting for Para 13(2), the nomination should be
made in favour of person other than the spouse. Similarly it should be ensured
that the member furnished his option for Commutation under Para 12A.
12) While furnishing family details, the relationship with the member may be
furnished correctly in Form-10D.
13) Whether the particulars of wages etc. at Page 7 of the claim form is duly
checked and correctly filled up by the employer.
43
14) Separate Savings Bank Account for the minor children may also be opened in the same branch at which the Savings Bank Account opened to the
widow/widower.
CHECKLIST FOR CLAIMS IN FORM-13(Revised)
(Form to used for transfer of PF accumulation)
1. To check whether all columns in the claims are properly filled.
2. Whether the particulars are written clearly without any overwriting or cutting.
Correction, if any, is attested.
3. Whether the previous employment particulars such as name, address and code
number and the account number of the member are correctly furnished.
4. In case the PF transfer is due from the PF Trust of an exempted establishment,
the application is to be sent direct by the employer to the PF Trust of the
exempted establishment with a copy to the RPFC concerned for details of the
Pension Scheme membership.
5. This form should be submitted by the member to the present employer for
onward transmission to the RPFC by whom the transfer is to be effected.
CHECKLIST FOR CLAIMS IN FORM-31
(Form to be used for claiming advance/withdrawal)
1. To check whether all columns in the claims are properly filled.
2. Whether the particulars are written clearly without any overwriting or cutting.
Correction, if any, is attested.
3. For the non-refundable withdrawal under Para 68B it should be ensured that declaration in the prescribed form is furnished. In all cases the employer
should ensure the genuineness of the case before forwarding the application. It
should be noted that if the advance granted is misused, the amount of advance
will be recovered together with penal interest.
4. For the withdrawal for repayment of loans under 68 BB, it should be ensured that the member earlier obtained a loan from a State Government, Cooperative
Society, Housing Board, a Municipal Corporation, or a body similar to Delhi
Development Authority solely for the housing purpose.
5. For closure/lock-out it should be ensured that no compensation is paid to the member and the advance is eligible for the reasons other than strike only.
44
6. For Illness of member/family member whether the certificate has been furnished by the employer as regards to the leave granted and the non-
availability of ESI benefits
7. Whether the medical certificate in proper form obtained from the factory
doctor/designated medical officer/the Registered Medical Practitioner/Hospital
is enclosed. Before forwarding it to the RPFC, the genuineness of the
certificate should be ensured.
8. It should be noted that one month hospitalisation is compulsory in case of the illness of family members.
9. In case of treatment of heart ailment/mental derangement a certificate by a specialist doctor is necessary.
10. For marriage purpose certificate regarding advance required to meet the
expenses in connection with the marriage needs to be furnished in the claim
form.
11. In the case of education a certificate from the educational institution regarding the course of study and the anticipated expenditure needs to be submitted.
12. Before forwarding the applications for the reasons noted under item No10 the genuineness of the case shall be ensured by the employer.
13. In case of advance for the natural calamity (flood/earthquake/riot) whether the certificate from an appropriate authority to the effect that the movable or
immovable property has been damaged as a result of the natural calamity and
it should be ensured that the State Government has declared that the calamity
has affected the general public in the area. It is also to be ensured that the
application for advance is made within a period of 4 months from the date of
declaration by the State Government.
14. In the case, affected by cut in electricity it should be certified that the fall in wages amounting to 25% or more than 25% of the wages in respect of the
member is due to power cut. A certificate from the State Government is also
necessary to the effect that the cut in the supply of electricity was enforced in
that area where the factory is situated.
15. Purchase of equipment for physically handicapped member: whether the certificate from a competent medical practitioner furnishing the details like
name of the person, nature of the handicap, nature of the equipment required
and its approximate cost is submitted.
16. Payment of withdrawal within one year before the retirement. The employer should ensure that the member has attained the age of 54 years or within one
year before his actual retirement on superannuation, which is later and then the
application is submitted. He should also ensure that the said particulars tally
with the age particulars furnished in Form – 9 or Form – 2.
45
3. DELIVERY OF EMPLOYEES’ PROVIDENT FUND SERVICE IN THE ESTABLISHMENT
The employees serving under the ‘Model Employer’ will be given prompt service by the Employees’ Provident Fund Office. They can get the Provident Fund and other benefits, at the doorstep of the establishment, on the day of their retirement from service. WHO IS A ‘MODEL EMPLOYER? An employer, who –
• Deposits the PF dues before 15th of each month.
• Submits monthly returns before 25th of each month and annual
returns before 30th of April.
• Enrolls all eligible employees as PF members.
• Complies with the duties of employers.
• Submits the claims of all retiring employees one month in
advance.
COMPLIANCE BY THE EMPLOYER ENSURES SOCIAL
SECURITY BENEFITS ARE PROVIDED TO THE EMPLOYEES
46
4. BILL OF RIGHTS OF EMPLOYERS
� It is your right to get registration and code number within three days of filing of an application
� It is your right to receive an acknowledgement in token of receipt of the application/returns submitted by you.
� It is your right to ask from the Enforcement Officer visiting your
establishment the letter of authority issued by the concerned circle officer.
� It is your right to be heard by the competent authority before any liability
is fixed on Enforcement Officer.
� It is your right to approach the higher authority in case of harassment by any employee of the Employees Provident Fund Organisation.
� It is your right to get the Forms required for filing application/ returns etc. free of cost from any office of the Employees Provident Fund Organisation.
� It is your right to demand improved service delivery for your workers.
� It is your right to receive courteous and responsive service from any EPF employee.
SUBMITION OF NOMINATION FORMS OF YOUR
EMPLOYEES SECURES THEIR FAMILY’S FUTURE
47
5. DUTIES OF EMPLOYER
The Schemes framed under the Act stipulates the duties of Employer vide para
36 of Employees’ Provident Fund Scheme’52, Para 20 of the Employees’ Pension
Scheme’95 and Para 10 of Employees’ Deposit Linked Insurance Scheme’76.
Accordingly an establishment covered under the Act to which the Scheme/s
is/are applicable is required to comply with the following: The Regional Office/Sub-
Regional Office should ensure the prompt and proper compliance.
Document Authority EPF
EPS EDLI EPF
EPS
EDLI
S.
No
.
Duties
(Form No.) (Para)
1. To submit a return of ownership 5-A 36A 21 1
2. To obtain the details of past
employment/membership of employee
11 34 24 -
3. Consolidated return of employees required to
become members of the Funds on the date of
application of the Scheme
9 4 1 36 20 10
4. Return of employees qualifying for membership
under PF, Pension and Insurance Fund for the
first time during the month.
5 4 2 36 20 10
5. Return of employees leaving the service of the
employer during the month
10 5 3 36 20 10
6. Declaration and Nomination Form for
EPF/Pension/ IF
2(R) 33 16 10
7. Recovery and Payment of contributions. 30 4 8
8. Payment of Administrative charges 38(1) - 8
9. Consolidated Statement of dues and remittance 12A 6 4 38 20 10
17. Production of Contribution Card to the member. 45 20 -
18. Production of records to the Commissioner. 46 20 11
19. Attestation and forwarding of application for
Advances/Withdrawals and Final Settlement
72 20 10
20. Distribution of annual statement of accounts to
the members.
73 - -
48
6 . FORMS & INITIAL / MONTHLY / ANNUAL RETURNS required to be filed by Employer under EPF’52,EPS’95&EDLI’76 schemes
PROVISIONS OF THE SCHEMES RELATING TO SUBMISSION OF
FORMS & MONTHLY/ANNUAL RETURNS BY EMPLOYERS OF
UN-EXEMPTED ESTABLISHMENTS
Relevant Para
provisions under
Sl.
No.
Form
Number
Purpose
Due date EPF,
52
EPS,
95
EDLI
,76
1.
EPFO
Business
Number
Form
To build up a clean
database of the employers
to facilitate the conduct of
business vis-à-vis the
employer more efficiently
in future.
-- -- --
2. Form-5A
To be furnished by the
employer to ascertain the
particulars of the
establishment & ownership
of the establishment. This
should be updated
whenever there is a
change in the name &
management of the
Establishment.
Immediately on
coverage and
wherever any
change in the
name of the
establishment and
ownership occurs
within 15 days
from such
change.
36A
21
10
3. Form 11
(Revised)
Declaration by a person
taking up employment in a
covered establishment.
Immediately on
appointment of
the person in the
establishment.
34
24
10
4. Form 9
(Revised)
Basic Document
containing all details
relating to the members
enrolled into the Provident
Fund Scheme and the
details of the
establishment.
To be submitted
within 15 days
from the date of
receipt of
communication of
coverage.
36
20
10
5. Form-5
(Monthly)
Reflecting the details of
employees joining EPF &
EPS during the month.
Within 15 days of
the following
month. 36(2)(a) 20 10(1A)
6. Form-2
(Revised)
A declaration and
nomination for Provident
Fund and Pension
Schemes, executed by each
member and attested by the
employer.
To be submitted
along with the
Form 9/ Form 5 33 16 10
49
Relevant Para
provisions under
Sl.
No.
Form
Number
Purpose
Due date EPFS,
52
EPS,
95
EDLI
,76
7. Form-10
(Monthly)
Reflecting the details of
employees leaving service
during the month.
Within 15 days of
the following
month.
36
20
10
8. Form-
12A
(Monthly)
Furnishing the details of
wages, contribution and
other charges under the
three schemes pertaining to
the month.
Within 25 days of
the following
month. 38(2) 20 10
9.
Form-3A
Contributi
on card
(Yearly)
Furnishing the details of
the wages, contribution and
the period of non
contributory service
pertaining to an employee
for a period of twelve
months in a financial year.
Before 30th April
of each year.
35 & 42
19
--
10. Form-6A
(Yearly)
The dues and remittances
as per Forms 12A should
be reconciled in the Form
6A. It shall contain the
consolidated statement of
Form 3A for a year.
Before 30th April
of each year
along with the
Form.3A.
38(3) 20(4) --
11.
Specimen
Signature
of the
Employer
/authorised
official.
The Signature of the
Employer or the official
who has been authorised to
sign/attest the PF
documents should be
lodged with the RPFC in
the prescribed ‘specimen
card’. This should be
updated whenever there
is a change in the
authorised signatory.
Along with F-9
and immediately
whenever there is
a change
36 -- --
50
51
RETURNS REQUIRED TO BE SUBMITTED BY EMPLOYERS OF
EXEMPTED ESTABLISHMENTS
FORM NO. DESCRIPTION PURPOSE
One time Returns on Coverage Pension
3(PS) The Employees' Pension Scheme 1995[para 20 (i)].
Consolidated Return of employees who are
entitled and required to become members of the Pension Fund on the date the Pension
comes into force. Within 15 days of
coverage.
Employees' Deposit Linked Insurance Scheme
The Employees' Deposit Linked Insurance Scheme, 1976[para 10] .
Consolidated Return of employees who are entitled and required to become members of the Insurance Fund on the date the Scheme comes into force. Within 15 days of coverage.
Monthly Returns Pension
F4 (PS) The Employees' Deposit Linked - Insurance Scheme, 1976 [para 10] . A return of members joining service during the month.
Within 15 days of close of every month.
F5 (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
Consolidated annual contribution statement : This form provides annual contributions of each member of the establishment. A vital form for compiling the annual Insurance statement of a subscriber.
F4 (IF) No. of employees and amount of inspection f
Occasional Returns Pension
F9 The Employees' Pension Scheme 1995[para 24] .
Declaration by a person taking up employment in an establishment in which the Employees' Pension
Scheme is in force.
53
7. DEFAULT IN PAYMENT OF DUES BY EMPLOYER – CONSEQUENCES:
� Penal Damages upto 37 % per annum and interest at the rate of
12 % payable on defaulted deposits. � Attachment of Bank Accounts.
� Realisation of dues from Debtors.
� Attachment of movable and immovable properties.
� Arrest and Detention.
� Action under Section 406 / 409 of Indian Penal Code.
� Action under Section 110 Criminal Procedure Code.
� Prosecution under Section 14 of the EPF & MP Act 1952.
EPFO WEBSITE: www.epfindia.com
54
Chapter V
GRIEVANCE REDRESSAL SYSTEM IN EPFO In every Employees’ Provident Fund Office customer service is provided with a counter “May I help you” to assist the employees/members in clarifying their doubts and also to assist them in claiming their benefits etc.
The employees can meet the Officer-in-Charge (Regional Provident Fund Commissioner/Assistant Provident Fund Commissioner) on the prescribed dates/time. A service Centre is also functioning at the district level, to assist the Employees and members. In case Provident Fund claims are not settled within 30 days, the members may inform to the Grievance Officer of Employees’ Provident Fund Office and to Bhavishya Nidhi Adalats. In all the EPF Offices, Bhavishya Nidhi Adalat is conducted on 10th of every month to redress the Grievances.
The addresses of all the Employees’ Provident Fund Organisation
offices are given at the end of this booklet. The complainants can approach the Regional Provident Fund
Commissioner concerned to redress their grievances. The complaint relating to outstation Employees’ Provident Fund Offices
can also be lodged in the nearest Employees’ Provident Fund Office.
•
SERVICE IS OUR MOTTO
If your compliant is not redressed at our field office , contact:
The Additional Central Provident Fund Commissioner
The Employees’ Provident Fund Organisation is investing the EPF moneys in accordance with the pattern of Investment prescribed by Government of India through the State Bank of India. The yield (return) on investment is distributed to the Provident Fund members on their Provident Fund balances, on monthly balance and credited on compound basis on 1st of April each year. The rate of interest declared for the past few years is as under:- 2006-07 : 8.5% 2005-06 : 8.5% 2004-05 : 9.5% 2003-04 : 9% + 0.5% Bonus Interest 2002-03 : 9.5% 2001-02 : 9.5% 2000-01 : 11.00% The interest is paid at the declared rate on monthly balance method separately for employee’s share and employer’s share and reflected in the Annual Provident Fund Statement of Accounts issued to the members through their employers. Even after leaving the service the Provident Fund balances of the members will continue to earn interest till its withdrawal. There is no period stipulated for withdrawal of the EPF account.
EPFO PROTECTS YOU AND YOUR FAMILY
56
Chapter VII
“REINVENTING EPF INDIA”
-Mordernisation Project taking leverage of Information Technology
57
Chapter VIII
CLAIM FORMS (PRE-BPR)
� All claim forms are supplied free of cost in the Employees’ Provident
Fund Organisation- Regional, Sub-Regional, Sub-Accounts Offices and District Offices.
� The above claim forms can also be downloaded from the Employees’ Provident Fund Organisation website: www.epfindia.com.
S.No
FORM No. PURPOSE SCHEME PROVISIONS
1. Form 13 (Revised)
Application for seeking transfer of account by a member.
Para 57 of EPFS, 52
2. Form 14 Application for financing a life insurance policy out of PF accumulation (Employee share) of the member
Para 62 of EPFS,52
3. Form 19 Application for claiming the PF accumulations dues on leaving service/retirement.
Para 69 of EPFS,52
4. Form 20 Application for claiming the PF accumulations of the deceased PF member by Nominee /family members/ Legal Heir.
Para 70 of EPFS,52
5. Form 31 Common form for all types of advances/withdrawal for specified purposes from the fund (other than final settlement)
Para 68 of EPFS,52
6.
Form-10C (EPS)
Application for claiming the Withdrawal / Refund of benefits or Scheme Certificate under EPS’95.
Para 14(1) of EPS’95
7. Form-10D (EPS)
Application for claiming the monthly Pension under EPS’95 by member / family members of member / nominee.
Para 12 & 16 of EPS,95
8. Form-5(IF) Application for claiming the Assurance Benefit under the EDLI Scheme, 1976.
Para 24 of EDLI, 76
COLLECT ALL FORMS, FREE OF COST
58
Chapter IX
FREQUENTLY ASKED QUESTIONS (FAQS) EPF MEMBERSHIP
1. I am an employee working in an establishment to which the PF Act is not applicable. Can I become a member of the EPF? An employee can become a member only after the application of the Act to the establishment. 2. If an employee is not given the PF membership, to whom he can approach? He can approach his employer failing which he can approach the Regional Provident Fund Commissioner. 3. Whether the employees working in a Branch Unit of an establishment located outside the state is eligible to become a member of the EPF? The Act is applicable to an establishment, its employees, irrespective of their place of work or location, are eligible to become a member of the Fund. 4. If an employee is working in more than one establishment how his membership is regulated? His membership is reckoned separately for each establishment. (Under different Provident Fund Account Numbers)
5. Can an employee become a member of EPF without any age restriction? There is no age restriction for becoming a member of the Provident Fund, whereas an employee who has already attained the age of 58 can not become a member of the Pension Fund.
6. Whether an employee can become a member of the EPF without any restriction to his salary/wages? The employees who are drawing the basic wages and dearness allowance upto Rs.6,500/- are alone eligible to become a member. He will continue to be a member even when his pay exceeds Rs.6,500/-. However, his contribution to the Fund will be restricted to Rs.6,500/-. The employer is also required to pay his matching contribution upto Rs.6,500/-.
59
7. Whether an apprentice can become a member of the EPF? No. When he ceases to be an apprentice he should be enrolled immediately.
8. If an employee is drawing more than Rs.6,500/- (Basic + DA only) is he require to become a member of the EPF? Such employees are not required to become a member, if he is not already holding the PF membership. Otherwise, if both the employer and employee are willing, he can become a member by giving option. 9. If an employee is transferred from one establishment to another establishment whether he is required to be enrolled as a member once again? He is required to be enrolled as a member under the new establishment, for transferring his Provident Fund from his previous account. 10. If a person is working in an establishment without receiving any wages whether he can be given the PF membership? Membership is allowed only where the wages are payable to an employee. 11. Whether an employee can become a member of the Pension Scheme only, without contributing to the PF? No. By virtue of membership of Provident Fund only one can become a member of the Pension Scheme. 12. Whether an employee can continue as a PF member even after his retirement? Yes. 13. Is there any option available to an employee whether to become a member of the EPF or not? No option.
60
14. Whether a EPF member can discontinue his membership, while in employment? Not permissible. 15. Where an establishment is having its own recognised private PF whether an employee can be allowed to continue in the private PF without joining the EPF? If the Act is applicable to that establishment, then he should seek exemption from the EPF Scheme. He will however continue to be governed by the Pension and EDLI Schemes. 16. How long an employee can continue his EPF membership? There is no restriction of period for membership. Even after leaving the establishment a person can continue his membership. 17. How the period of non employment between two spells of employment is treated under EPF? Non employment period is not affecting the EPF but affects the service for the purpose of Pension. 18. What will happen for the EPF membership of an employee during the period of closure, lock-out, strike etc.? During such period the membership will continue and in the absence of wages no recovery of contribution will be made.
19. Whether an employer can also join the PF? No. 20. Whether an employee can continue his EPF membership after leaving the employment? Yes. 21. Whether any employee can join the EPF directly? No. 22. A Security Guard is working for different establishment; under whom he is required to secure membership?
61
If the employer of the Security Guard has been brought under the Act, the membership will be given through him, irrespective of his place of work. 23. If the establishment is not employing 20 persons, whether an employee can join the EPF? Yes. The majority of employees and the employer can voluntarily opt for the Act/Schemes. 24. What other benefits are accrued on joining the EPF? On joining the EPF, the member is provided the benefits under Pension and Insurance Schemes. 25. Whether an employee drawing Pension under EPS, 1995 is required to join the PF and Pension Fund? He is required to join only the PF and not to the Pension Scheme. 26. An employee who joins an establishment at the age of 58 is eligible to become a member of the Pension Fund? No. 27. How long a member can retain his Provident Fund in his account? The membership can be retained till the withdrawal of his Provident Fund dues.
PF CONTRIBUTIONS
28. Whether an employer can deduct employer’s share of contribution from the wages of employees? No. It is not permissible. 29. Can the wages be reduced by the employer on account of payment to the EPF? No. It is not permissible. 30. Whether a daily rated employee or the piece rated employee can become a member of the EPF? Yes. Irrespective of the nature of employment.
62
31. If an employee is paid wages on daily basis or on piece rate basis how the contribution is determined? The wages paid in a month will be taken to determine the contribution due. 32. Whether the member is entitled for full interest on the belated deposit of PF dues by the employer? After realising the dues, the PF members will be given full interest for each due month and it will no way affect the interest due to members on the contributions paid. 33. An employee is paid subsistence allowance during the period of his suspension. Whether PF contribution is payable on this? Yes. 34. Can an employee contribute to the EPF after leaving the service? No. In the absence of wages no recovery can be effected. Any contribution by the member is also matched with employer’s share of contribution. 35. The contribution has been recovered from the wages of the employee but the employer had not paid to the EPF. What is the remedy? The Employees’ PF Organisation will invoke penal provisions of the Act to recover the dues from the employer. In such cases when the employee leaves/retires the question of payment of employee’s share will be considered for releasing the amount from the “Special Reserve Fund”. 36. What will be the effect of non payment of PF dues by an employer? or How a member is affected for non payment of EPF dues by the employer? The Provident Fund dues of the member will be paid only to the extent the amount is realised from the employer. 37. Whether an employer can recover any outstanding dues from the PF amount payable to a member? No. It is totally prohibited.
63
38. What are the measures by which the PF amount is recovered from a defaulting employer? Attachment of Bank Accounts, Realisation of dues from Debtors, Attachment of properties, Arrest and Detention, Action under Section 406/409 of Indian Penal Code and Section 110 of Criminal Procedure Code, Prosecution. 39. How a member is informed about the non payment of contributions recovered from the wages of the employee but not paid to the EPF? The Annual P.F. Statement of Account will indicate only the amount paid by the employer. The default period in a year is thus made known to the members. 40. Whether the P.F. amount credited to the member can be attached against any liability? No. The Provident Fund enjoys protection against attachment by Court also. 41. When an employer becomes insolvent or when a company is wound up, whether the contributions will be paid in priority over other debts? Yes. 42. In the case of non payment of PF dues by the employer, how the P.F. members are paid their dues? The members’ share alone is payable from the Special Reserve Fund. In case the establishment is closed for more than five years or it is under liquidation the question of paying the employer’s share will also be considered from the Special Reserve Fund. 43. When wages are not collected by the member whether the PF can be deducted or not? The employer shall, before paying the member his wages, is required to deduct the PF contribution from his wages and pay to the Regional PF Commissioner. As such PF can be deducted. 44. Can a member pay contribution in excess of the statutory rate of 12%? Yes. (The employer may restrict to the statutory rate). 45. Can a member demand for showing the recovery of contributions from the employer?
64
Yes. The contribution card of each member in Form 3-A can be demanded from the employer. 46. How the contract employees are protected and given their P.F. when the contractor is not paying the dues to the principal employer? It is the duty of the principal employer to ensure that the Contractor discharges his liability. (Also refer to answer to Question No.42) 47. Can a member refuse to part with the payment of contribution to the Pension Fund? The Pension contribution is only a diversion from the employer’s share of Provident Fund. Hence no consent is required from the member and refusal does not arise. 48. Whether an employer can stop paying Employees’ Provident Fund contribution in respect of a member who had attained the age of 55 or 60? No. The Employees’ Provident Fund Contribution should be paid till the date of his leaving the service, irrespective of the age of the member.
NOMINATION FACILITY
49. In the absence of nomination, how the P.F. amount of a deceased member is paid? It is payable to the family members in equal shares, under Para 70 (ii) of EPF Scheme, 1952. If there is no eligible family member, it is payable to the person(s) who are legally entitled to it. 50. What is the need for giving nomination for pension? On the death of a Pension member (before receiving the pension), if there is no eligible family member, pension is payable to the nominee. 51. Whether the nominee given for pension is applicable for return of capital also? No. A nominee should be specifically mentioned by the member while applying for his superannuation/early pension in Form 10D. (The nominee may be the same person as given in Form-2)
65
52. Whether the nomination can be changed? Yes. through Form 2. 53. In the absence of valid nomination to whom the Pension amount is payable? Payable to the dependant parents, (dependant father followed by dependant mother). 54. Whether a bachelor can nominate any person? Yes. On acquiring the ‘Family’ the nomination is treated as invalid.
PENSION SCHEME
55. What are the benefits of Pension Scheme to an employee and his family? Please refer to the Chapter showing the benefits of Pension Scheme. 56. Whether an employee who has not opted for Family Pension Scheme, 1971 can join the Pension Scheme? Yes. By giving an option and paying the arrear dues from 01-03-1971 to the current date along with interest. 57. What is the formula for giving the Pension? Pensionable Salary X Pensionable Service Pension = ---------------------------------------------------- 70 58. What is the quantum of pension a member can get on his superannuation? A member who joins the new Pension Scheme at the age of 18 and superannuated at the age of 58, and contributing to the (present) wage ceiling of Rs.6,500/- may get about 60% of his wages as Pension. Pensionable Salary X Pensionable Service 6500 X 40 + 2*
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--------------------------------------------------- -------------------- = 3,900 70 70 * weightage of 2 years where the service is more than 20 years 59. How the average salary is determined for granting pension? The average salary is determined only for giving the pension to member. It is the average of last 12 months. (Non contributory period, if any, is deducted) 60. What are the advantages of taking a Scheme Certificate? 1) It facilitates transfer of Pension Accounts when the employment is changed. 2) If the Holder of Scheme Certificate dies the family will get family pension. 3) It is like a Policy for Pension without paying the premium. 61. In case of death of a Pension member who was an Ex-serviceman, whether family pension is payable or not? Family pension is payable i.e. in addition to the Military Pension, i.e. family pension under Rule 54 of the CCS (Pension) Rules, 1972. (Effective from 27-07-2001 only) 62. Can a member seek exemption from the Pension Scheme? Individual member can not seek exemption from the Pension Scheme. Only an establishment, can seek exemption. 63. At what age a member is eligible for pension? A member is eligible for pension on superannuation at the age of 58 years. If a member leaves employment between 50 and 57 years he can avail the early (reduced) pension. 64. What is the service required for giving pension in case of death of the member? The minimum service of 10 years is only for payment of pension to a member. It is not applicable, where a member dies. The family pension is payable even after receiving one month’s contribution (including part of the month) for Pension Fund. 65. If a member dies to whom the pension is payable?
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On death of the member the Pension is automatically payable to the spouse (Widow/Widower). In addition, the children are also eligible (2 at a time). 66. When a pensioner can restore his commuted value of pension? There is no provision for restoration of commuted value of pension. 67. Can a pensioner opt for commutation and also return of capital? Yes. He has to give a specific option for both in the application form. 68. In case the employer has failed to pay the pension contribution whether any pension is payable or not? Non payment of pension contribution by an employer will not affect the grant of Pension. Pension is guaranteed. 69. Can a pensioner get pension anywhere in the country? Yes. 70. How the pension of a member who works for different establishment is determined? The wages and the service of the member are consolidated to determine the Pension. 71. When the minimum 10 years of service is required for giving pension to an employee what is the service required in case of his death in service? Even with one month’s service (included part of the month) family pension is payable, in case of death in service. 72. Is there any increase in the pension amount every year? There is a provision for valuation of the pension fund for considering the increase by way of relief every year. So far relief has been paid every year. 73. When a member avails reduced pension at the age of 50 can he get his full pension on attaining 58 years?
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No. Once Pension is sanctioned it can not be altered. 74. What are the criteria for determining the date of eligibility for early pension? (Before 58) The member is required to indicate his option regarding the date from which he requires early pension in the application form. 75. Can a member avail pension even while he is in service? The member who continues in service even after 58 years can avail the Pension from the age of 58. If a pensioner, who has availed the early pension, may take up employment thereafter and in such cases he will not be eligible to join the Pension Scheme. 76. Can I surrender or sell my full pension for getting a lumpsum payment? No. 77. Is it compulsory to withdraw the pension benefit alongwith the P.F. amount? No. A member can withdraw his PF dues but he can continue to be Pension member. In such cases he can avail the Scheme Certificate. 78. Can I change my Date of Birth/Age? No. Date of Birth/Age once given is not normally changed. 79. Can a married daughter be excluded from receiving the family pension? The marital status has no relevance if the children are below 25 years; they are eligible for family pension. 80. When the member has opted for return of capital to be paid after the death of his spouse, whether any family pension is payable to the spouse? Yes. The widow is entitled for her normal widow pension (50% of the pension), and in addition, in lieu of ‘Return in Capital’ she is entitled 80% of the original pension. 81. If a member is having two wives to whom the family pension is payable? If the second marriage is legally valid, it is payable to the eldest with reference to the date of marriage and on her death, payable to the next surviving widow.
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82. In the absence of family member whether a pensioner can nominate any other person to receive family pension? No. In the absence of family member on the date of the death of the member (before eligibility for member pension), the family pension is payable to nominee and in the absence of a valid nomination it is payable to dependant father followed by dependant mother. Once the pension is received by the member there is no validity for nomination. A pensioner can not nominate any person. 83. What will be the effect of unemployment period under the Pension Scheme? The unemployment period will be excluded from the actual service. 84. Is it possible to exclude my spouse from receiving the family pension? No. The spouse is an automatic beneficiary unless she is legally divorced. 85. In the absence of family members and also nominee to whom the pension is payable? It is payable to the dependant parents. 86. Who is eligible for disablement pension? Any employee (Pension member) irrespective of age and service who is declared as disabled with 100% disability certified by the designated Hospital and where the member had left service only on account of his disablement is eligible for disablement pension. 87. Why a pensioner’s widow gets lesser pension when compared to non pensioner’s widow? The pension and family pension under Employees’ Pension Scheme, 1995 are the Social Security benefits. It is viewed as a need based benefit. It is not related to the quantum of contribution paid by a member. A pensioner after attaining the age of 58 years is to take care of his spouse and in his absence the liability is restricted to one person. Hence 50% of the pension is payable. Whereas in the case of a member (non pensioner) who dies leaving behind his spouse, children who are yet to complete their education, marriage etc. and also considering the pre-mature death of a member the quantum of pension payable to non pensioner’s widow is on the higher side. (This is for information only)
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88. Whether family pension is payable to a widow who was married to a pensioner? (After his superannuation) The widow of a pensioner is eligible for family pension (irrespective of the date of marriage whether prior to his superannuation or thereafter) 89. In case the widow or widower remarries, to whom the family pension is payable? The pension payable to the widow/widower will be stopped and thereafter the children pension will be converted to orphan pension by giving higher pension. 90. What is the period upto which pension is payable to the widow or widower? For life. 91. When a member is having children through his first and second wife, how the eligibility for children pension is determined? The children of both first and second wife should be arranged in the order of their date of birth and then the children pension is allowed. 92. Is it necessary to open a separate bank account to draw the children pension? Yes. 93. Can the widow and children draw pension in different places/banks? No. The pension should be drawn by widow and children in the same bank and branch. 94. Who is eligible to get a Scheme Certificate? A member whose service is 10 years or more and not attained the age of 58 years will be eligible to receive the Scheme Certificate only. A member whose service is less than 10 years also may avail the Scheme Certificate. 95. Whether a member/family member can avail 2 pensions under Employees’ Pension Scheme, 1995?
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No. 96. When and to whom the pensioner is to give a life and non-remarriage certificate? All pensioners drawing pension under Employees’ Pension Scheme, 1995 are required to give a Life/Non-Remarriage Certificate, duly attested by the Bank Manager/Gazetted Officer in the month of November each year. To be submitted to the Bank through which the pension is being paid. Failure to submit will result in stoppage of pension from the month of January. 97. Whether a Scheme Certificate holder with a service period of 8 years can avail the withdrawal benefit on surrender of Scheme Certificate. No. Only on attaining 58 years he can surrender either to avail the Pension (if eligible) or withdrawal benefit. 98. Whether the Orphan Children are eligible for double Orphan Pension where both the parents were making contributions under Employees’ Pension Scheme, 1995? Yes. The benefit under the Pension Scheme is a direct consequence of the contributions paid by the member of EPS, 1995, hence, if both parents were members and have contributed independently to the said Scheme, the Orphan will be eligible to two pension separately. The normal ceiling as provided for in the Employees’ Pension Scheme shall however, continued to apply. 99. Whether Withdrawal Benefit will be payable to a member in case of defaulting establishment?
In respect of an establishment defaulting in remitting contribution to the Employees Pension Fund 1995 for any period, withdrawal benefit will not be paid to the member in respect of the default period. The member is entitled to withdrawal benefits only in respect of the period for which the contributions are received.
EDLI SCHEME
100.Whether Assurance benefit under EDLI Scheme is payable for death away from service? No. Admissible only in case of death while in service.
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101.To whom the EDLI benefit is payable? EDLI benefit is payable to the persons eligible to receive the EPF dues. 102.Whether Assurance Benefit is payable to missing EPF member ?
Payment of Assurance Benefit under EDLI Scheme 1976 in respect of missing EPF members is not contemplated.
SETTLEMENT OF PF FINAL ACCOUNTS
103. In case the PF amount is not settled within 30 days to whom the matter is to be reported? He can approach the Regional P.F. Commissioner in charge of Grievances or he can appear before the Bhavishyanidhi Adalat being conducted on 10th of every month. 104. Is there any time limit for withdrawal of Provident Fund dues? Only in the case of resignation from service a member has to wait for a period of two months for withdrawal of the PF dues. 105. When the employer is not attesting the claim form how to submit the application for withdrawal of provident fund? It is the duty of the employer to attest the application form. In case of any dispute, the member may attain attestation preferably from the bank in which he has maintained his account and thereafter submit the same to Regional PF Commissioner, explaining the reasons for not obtaining the signature of the employer. The Regional P.F. Commissioner will pursue the matter with the employer wherever necessary. 106. What is the time limit fixed for disposal of the application for advances/settlement? On submission of the claim with full particulars and documents etc, it will be disposed within 30 days.
TRANSFER
107. In case of change in employment whether a member can get his PF account transferred?
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On change in employment, the member should necessarily get his PF account transferred to his present establishment, duly submitting Form 13(R ) 108. If past accumulations are not transferred on cancellation of exemption, how the provident fund amount is paid to the members? The EPF authorities will ensure transfer of securities/cash and arrange for refund of dues to the members. 109. How a PF member will be informed of the transfer effected? A copy of Transfer Certificate issued to the transferee Regional P.F. Commissioner/P.F. Trust giving full details of the transfer will be sent to the concerned member also.
INTEREST
110. What is the method of crediting interest to the P.F. subscribers? The compound interest is credited on monthly running balance basis at the statutory rate declared for each year.
ISSUE OF ANNUAL ACCOUNTS
111. Whether the annual statement of accounts will be issued to the members who are out of employment? Yes. Issued till the account is transferred to Unclaimed Deposit; in such cases the member may approach the Regional P.F. Commissioner concerned for obtaining the statement of account. 112. Is the P.F. Statement of Accounts is issued only after full payment of dues by the employer is made for the whole year? No. The statement is issued to the extent the amount is received in the financial year. 113. Why there is no statement of accounts for pension amount and why the Pension contributions are not shown/reflected in P.F. Annual Statement of Accounts. The Annual statement of accounts is issued only for the PF balances. The pension contributions are credited to the Pension
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Fund and no running account is kept in respect of a subscriber because the benefit under Pension Scheme is not related to the quantum of pension contribution paid. It purely relates to the age, wage and service of the member, on exit from employment. As such the pension contributions are not required to be reflected in the PF Annual Statement of Accounts.
ADVANCES AND WITHDRAWALS
114. Whether provident fund provides for any refundable loan for Housing etc.? No.
MODE OF PAYMENT
115. Can a member withdraw the entire amount through money order? No. The ceiling for withdrawing the PF amount by money order is only upto Rs.2,000/-. 116. Whether pension can be paid by money order or cheque? No. Pension is payable through the designated bank/Post Offices, notified for each region. 117. I like to know more about Employees’ Provident Fund Organisation. Please visit EPFO Website: www.epfindia.com
EPFO – IN SERVICE OF THE
NATION’S WORK FORCE
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Chapter 22
NATIONAL SOCIAL SECURITY NUMBER (NSSN) Key to the Social Security of the EPF Member
Employees’ Provident Fund Organisation has launched ‘Re-
Inventing EPF India’ to provide world class service to all its clients.
As part of this project a unique number called National Social
Security Number (NSSN) is allotted to every PF subscriber. It is
the first step towards providing world class service to all Provident
Fund Subscribers. National Social Security Number is a unique
identification number generated on computer for each Provident
Fund subscriber based on six type of basic information about him.
This information is collected in the prescribed NSSN forms
alongwith Photograph. The NSSN forms are supplied by Provident
Fund Office.
National Social Security Number is compulsory for every
Provident Fund Subscriber. It helps the member to get fast track
service from the Provident Fund Office. Provident Fund office will
be setting up camp in your establishment or nearby area for data
collection for allotment of Social Security Number very shortly.
Please contact your employer or the Provident Fund Office for
filling up of the forms for getting National Social Security Number.
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POINTS TO BE KEPT IN MIND WHILE FILLING UP NATIONAL SOCIAL SECURITY FORM
Furnish all information correct, complete and legibly in the NSSN Form.
���� The information should be in English only.
���� Use Capital/Block letters.
���� Use only black or blue ball point pen.
���� Fill only one letter/number in one box.
���� Letters should not cross into adjacent boxes.
���� Do not overwrite or use white ink or eraser for corrections.
���� Do not scribble when filling the form.
���� Do not use any titles like Late, Dr, Mr etc.
���� Married woman shall enter only father’s name not husband’s name.
���� Do not fold, crease or roll the form.
���� Do not staple, mutilate or tear the form.
���� Do not punch or staple forms together.
���� Do not paste anything on the form.
���� Please Do not fill those which are marked “FOR OFFICE USE ONLY”
1. Write your current PF Account Number in the Form against Sl.No.1
2. Write your full name against Sl.No.2.
3. Write your father’s full name against Sl.No.3
4. Write your mother’s full name (mother’s full maiden name) against Sl.No.4
5. If you were known in the past by any other name please write it against Sl.No.9.
���� If name is of single word. First name will be filled. Middle & Last Name will be left blank.
���� If Name is of two words. First Name and Last Name will be filled. Middle Name will be left blank.
���� If Name is of three & more words, the 1st part (1st word) of the Name shall go in First Name Field, the last part (last word) of the name shall go in Last Name field, and remaining all words shall be put in Middle Name field.
���� Married women shall enter only father’s name not husband’s name in the Father’s name field.
6. Write your correct date of birth against Sl.No.6
7. Write your place of birth against Sl.No.7
8. Write your correct correspondence address and permanent address against Sl.No.10 & 11 respectively.
9. Write your name and your father’s name as you would like to appear in the NSSN card against Sl.No.13 & 14 respectively.
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10. Darken the appropriate circle against Sl.NO.5, 8, 9.
“CORRECT AND COMPLETE INFORMATION WILL HELP US SERVE YOU BETTER”
Chapter IX
FREQUENTLY ASKED QUESTIONS (FAQS) EPF MEMBERSHIP
1. I am an employee working in an establishment to which the PF Act is not applicable. Can I become a member of the EPF? An employee can become a member only after the application of the Act to the establishment. 2. If an employee is not given the PF membership, to whom he can approach? He can approach his employer failing which he can approach the Regional Provident Fund Commissioner. 3. Whether the employees working in a Branch Unit of an establishment located outside the state is eligible to become a member of the EPF? The Act is applicable to an establishment, its employees, irrespective of their place of work or location, are eligible to become a member of the Fund. 4. If an employee is working in more than one establishment how his membership is regulated? His membership is reckoned separately for each establishment. (Under different Provident Fund Account Numbers)
5. Can an employee become a member of EPF without any age restriction? There is no age restriction for becoming a member of the Provident Fund, whereas an employee who has already attained the age of 58 can not become a member of the Pension Fund.
6. Whether an employee can become a member of the EPF without any restriction to his salary/wages?
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The employees who are drawing the basic wages and dearness allowance upto Rs.6,500/- are alone eligible to become a member. He will continue to be a member even when his pay exceeds Rs.6,500/-. However, his contribution to the Fund will be restricted to Rs.6,500/-. The employer is also required to pay his matching contribution upto Rs.6,500/-. 7. Whether an apprentice can become a member of the EPF? No. When he ceases to be an apprentice he should be enrolled immediately.
8. If an employee is drawing more than Rs.6,500/- (Basic + DA only) is he require to become a member of the EPF? Such employees are not required to become a member, if he is not already holding the PF membership. Otherwise, if both the employer and employee are willing, he can become a member by giving option. 9. If an employee is transferred from one establishment to another establishment whether he is required to be enrolled as a member once again? He is required to be enrolled as a member under the new establishment, for transferring his Provident Fund from his previous account. 10. If a person is working in an establishment without receiving any wages whether he can be given the PF membership? Membership is allowed only where the wages are payable to an employee. 11. Whether an employee can become a member of the Pension Scheme only, without contributing to the PF? No. By virtue of membership of Provident Fund only one can become a member of the Pension Scheme. 12. Whether an employee can continue as a PF member even after his retirement? Yes.
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13. Is there any option available to an employee whether to become a member of the EPF or not? No option. 14. Whether a EPF member can discontinue his membership, while in employment? Not permissible. 15. Where an establishment is having its own recognised private PF whether an employee can be allowed to continue in the private PF without joining the EPF? If the Act is applicable to that establishment, then he should seek exemption from the EPF Scheme. He will however continue to be governed by the Pension and EDLI Schemes. 16. How long an employee can continue his EPF membership? There is no restriction of period for membership. Even after leaving the establishment a person can continue his membership. 17. How the period of non employment between two spells of employment is treated under EPF? Non employment period is not affecting the EPF but affects the service for the purpose of Pension. 18. What will happen for the EPF membership of an employee during the period of closure, lock-out, strike etc.? During such period the membership will continue and in the absence of wages no recovery of contribution will be made.
19. Whether an employer can also join the PF? No. 20. Whether an employee can continue his EPF membership after leaving the employment? Yes. 21. Whether any employee can join the EPF directly? No.
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22. A Security Guard is working for different establishment; under whom he is required to secure membership? If the employer of the Security Guard has been brought under the Act, the membership will be given through him, irrespective of his place of work. 23. If the establishment is not employing 20 persons, whether an employee can join the EPF? Yes. The majority of employees and the employer can voluntarily opt for the Act/Schemes. 24. What other benefits are accrued on joining the EPF? On joining the EPF, the member is provided the benefits under Pension and Insurance Schemes. 25. Whether an employee drawing Pension under EPS, 1995 is required to join the PF and Pension Fund? He is required to join only the PF and not to the Pension Scheme. 26. An employee who joins an establishment at the age of 58 is eligible to become a member of the Pension Fund? No. 27. How long a member can retain his Provident Fund in his account? The membership can be retained till the withdrawal of his Provident Fund dues.
PF CONTRIBUTIONS
28. Whether an employer can deduct employer’s share of contribution from the wages of employees? No. It is not permissible. 29. Can the wages be reduced by the employer on account of payment to the EPF? No. It is not permissible. 30. Whether a daily rated employee or the piece rated employee can become a member of the EPF?
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Yes. Irrespective of the nature of employment. 31. If an employee is paid wages on daily basis or on piece rate basis how the contribution is determined? The wages paid in a month will be taken to determine the contribution due. 32. Whether the member is entitled for full interest on the belated deposit of PF dues by the employer? After realising the dues, the PF members will be given full interest for each due month and it will no way affect the interest due to members on the contributions paid. 33. An employee is paid subsistence allowance during the period of his suspension. Whether PF contribution is payable on this? Yes. 34. Can an employee contribute to the EPF after leaving the service? No. In the absence of wages no recovery can be effected. Any contribution by the member is also matched with employer’s share of contribution. 35. The contribution has been recovered from the wages of the employee but the employer had not paid to the EPF. What is the remedy? The Employees’ PF Organisation will invoke penal provisions of the Act to recover the dues from the employer. In such cases when the employee leaves/retires the question of payment of employee’s share will be considered for releasing the amount from the “Special Reserve Fund”. 36. What will be the effect of non payment of PF dues by an employer? or How a member is affected for non payment of EPF dues by the employer? The Provident Fund dues of the member will be paid only to the extent the amount is realised from the employer. 37. Whether an employer can recover any outstanding dues from the PF amount payable to a member? No. It is totally prohibited.
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38. What are the measures by which the PF amount is recovered from a defaulting employer? Attachment of Bank Accounts, Realisation of dues from Debtors, Attachment of properties, Arrest and Detention, Action under Section 406/409 of Indian Penal Code and Section 110 of Criminal Procedure Code, Prosecution. 39. How a member is informed about the non payment of contributions recovered from the wages of the employee but not paid to the EPF? The Annual P.F. Statement of Account will indicate only the amount paid by the employer. The default period in a year is thus made known to the members. 40. Whether the P.F. amount credited to the member can be attached against any liability? No. The Provident Fund enjoys protection against attachment by Court also. 41. When an employer becomes insolvent or when a company is wound up, whether the contributions will be paid in priority over other debts? Yes. 42. In the case of non payment of PF dues by the employer, how the P.F. members are paid their dues? The members’ share alone is payable from the Special Reserve Fund. In case the establishment is closed for more than five years or it is under liquidation the question of paying the employer’s share will also be considered from the Special Reserve Fund. 43. When wages are not collected by the member whether the PF can be deducted or not? The employer shall, before paying the member his wages, is required to deduct the PF contribution from his wages and pay to the Regional PF Commissioner. As such PF can be deducted. 44. Can a member pay contribution in excess of the statutory rate of 12%? Yes. (The employer may restrict to the statutory rate). 45. Can a member demand for showing the recovery of contributions from the employer?
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Yes. The contribution card of each member in Form 3-A can be demanded from the employer. 46. How the contract employees are protected and given their P.F. when the contractor is not paying the dues to the principal employer? It is the duty of the principal employer to ensure that the Contractor discharges his liability. (Also refer to answer to Question No.42) 47. Can a member refuse to part with the payment of contribution to the Pension Fund? The Pension contribution is only a diversion from the employer’s share of Provident Fund. Hence no consent is required from the member and refusal does not arise. 48. Whether an employer can stop paying Employees’ Provident Fund contribution in respect of a member who had attained the age of 55 or 60? No. The Employees’ Provident Fund Contribution should be paid till the date of his leaving the service, irrespective of the age of the member.
NOMINATION FACILITY
49. In the absence of nomination, how the P.F. amount of a deceased member is paid? It is payable to the family members in equal shares, under Para 70 (ii) of EPF Scheme, 1952. If there is no eligible family member, it is payable to the person(s) who are legally entitled to it. 50. What is the need for giving nomination for pension? On the death of a Pension member (before receiving the pension), if there is no eligible family member, pension is payable to the nominee. 51. Whether the nominee given for pension is applicable for return of capital also? No. A nominee should be specifically mentioned by the member while applying for his superannuation/early pension in Form 10D. (The nominee may be the same person as given in Form-2)
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52. Whether the nomination can be changed? Yes. through Form 2. 53. In the absence of valid nomination to whom the Pension amount is payable? Payable to the dependant parents, (dependant father followed by dependant mother). 54. Whether a bachelor can nominate any person? Yes. On acquiring the ‘Family’ the nomination is treated as invalid.
PENSION SCHEME
55. What are the benefits of Pension Scheme to an employee and his family? Please refer to the Chapter showing the benefits of Pension Scheme. 56. Whether an employee who has not opted for Family Pension Scheme, 1971 can join the Pension Scheme? Yes. By giving an option and paying the arrear dues from 01-03-1971 to the current date along with interest. 57. What is the formula for giving the Pension? Pensionable Salary X Pensionable Service Pension = ---------------------------------------------------- 70 58. What is the quantum of pension a member can get on his superannuation? A member who joins the new Pension Scheme at the age of 18 and superannuated at the age of 58, and contributing to the (present) wage ceiling of Rs.6,500/- may get about 60% of his wages as Pension.
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Pensionable Salary X Pensionable Service 6500 X 40 + 2* --------------------------------------------------- -------------------- = 3,900 70 70 * weightage of 2 years where the service is more than 20 years 59. How the average salary is determined for granting pension? The average salary is determined only for giving the pension to member. It is the average of last 12 months. (Non contributory period, if any, is deducted) 60. What are the advantages of taking a Scheme Certificate? 1) It facilitates transfer of Pension Accounts when the employment is changed. 2) If the Holder of Scheme Certificate dies the family will get family pension. 3) It is like a Policy for Pension without paying the premium. 61. In case of death of a Pension member who was an Ex-serviceman, whether family pension is payable or not? Family pension is payable i.e. in addition to the Military Pension, i.e. family pension under Rule 54 of the CCS (Pension) Rules, 1972. (Effective from 27-07-2001 only) 62. Can a member seek exemption from the Pension Scheme? Individual member can not seek exemption from the Pension Scheme. Only an establishment, can seek exemption. 63. At what age a member is eligible for pension? A member is eligible for pension on superannuation at the age of 58 years. If a member leaves employment between 50 and 57 years he can avail the early (reduced) pension. 64. What is the service required for giving pension in case of death of the member? The minimum service of 10 years is only for payment of pension to a member. It is not applicable, where a member dies. The family pension is payable even after receiving one month’s contribution (including part of the month) for Pension Fund.
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65. If a member dies to whom the pension is payable? On death of the member the Pension is automatically payable to the spouse (Widow/Widower). In addition, the children are also eligible (2 at a time). 66. When a pensioner can restore his commuted value of pension? There is no provision for restoration of commuted value of pension. 67. Can a pensioner opt for commutation and also return of capital? Yes. He has to give a specific option for both in the application form. 68. In case the employer has failed to pay the pension contribution whether any pension is payable or not? Non payment of pension contribution by an employer will not affect the grant of Pension. Pension is guaranteed. 69. Can a pensioner get pension anywhere in the country? Yes. 70. How the pension of a member who works for different establishment is determined? The wages and the service of the member are consolidated to determine the Pension. 71. When the minimum 10 years of service is required for giving pension to an employee what is the service required in case of his death in service? Even with one month’s service (included part of the month) family pension is payable, in case of death in service. 72. Is there any increase in the pension amount every year? There is a provision for valuation of the pension fund for considering the increase by way of relief every year. So far relief has been paid every year. 73. When a member avails reduced pension at the age of 50 can he get his full pension on attaining 58 years?
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No. Once Pension is sanctioned it can not be altered. 74. What are the criteria for determining the date of eligibility for early pension? (Before 58) The member is required to indicate his option regarding the date from which he requires early pension in the application form. 75. Can a member avail pension even while he is in service? The member who continues in service even after 58 years can avail the Pension from the age of 58. If a pensioner, who has availed the early pension, may take up employment thereafter and in such cases he will not be eligible to join the Pension Scheme. 76. Can I surrender or sell my full pension for getting a lumpsum payment? No. 77. Is it compulsory to withdraw the pension benefit alongwith the P.F. amount? No. A member can withdraw his PF dues but he can continue to be Pension member. In such cases he can avail the Scheme Certificate. 78. Can I change my Date of Birth/Age? No. Date of Birth/Age once given is not normally changed. 79. Can a married daughter be excluded from receiving the family pension? The marital status has no relevance if the children are below 25 years; they are eligible for family pension. 80. When the member has opted for return of capital to be paid after the death of his spouse, whether any family pension is payable to the spouse? Yes. The widow is entitled for her normal widow pension (50% of the pension), and in addition, in lieu of ‘Return in Capital’ she is entitled 80% of the original pension. 81. If a member is having two wives to whom the family pension is payable?
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If the second marriage is legally valid, it is payable to the eldest with reference to the date of marriage and on her death, payable to the next surviving widow. 82. In the absence of family member whether a pensioner can nominate any other person to receive family pension? No. In the absence of family member on the date of the death of the member (before eligibility for member pension), the family pension is payable to nominee and in the absence of a valid nomination it is payable to dependant father followed by dependant mother. Once the pension is received by the member there is no validity for nomination. A pensioner can not nominate any person. 83. What will be the effect of unemployment period under the Pension Scheme? The unemployment period will be excluded from the actual service. 84. Is it possible to exclude my spouse from receiving the family pension? No. The spouse is an automatic beneficiary unless she is legally divorced. 85. In the absence of family members and also nominee to whom the pension is payable? It is payable to the dependant parents. 86. Who is eligible for disablement pension? Any employee (Pension member) irrespective of age and service who is declared as disabled with 100% disability certified by the designated Hospital and where the member had left service only on account of his disablement is eligible for disablement pension. 87. Why a pensioner’s widow gets lesser pension when compared to non pensioner’s widow? The pension and family pension under Employees’ Pension Scheme, 1995 are the Social Security benefits. It is viewed as a need based benefit. It is not related to the quantum of contribution paid by a member. A pensioner after attaining the age of 58 years is to take care of his spouse and in his absence the liability is restricted to one person. Hence 50% of the pension is payable. Whereas in the case of a member (non pensioner) who dies leaving behind his spouse, children who are yet to complete their education, marriage etc. and
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also considering the pre-mature death of a member the quantum of pension payable to non pensioner’s widow is on the higher side. (This is for information only) 88. Whether family pension is payable to a widow who was married to a pensioner? (After his superannuation) The widow of a pensioner is eligible for family pension (irrespective of the date of marriage whether prior to his superannuation or thereafter) 89. In case the widow or widower remarries, to whom the family pension is payable? The pension payable to the widow/widower will be stopped and thereafter the children pension will be converted to orphan pension by giving higher pension. 90. What is the period upto which pension is payable to the widow or widower? For life. 91. When a member is having children through his first and second wife, how the eligibility for children pension is determined? The children of both first and second wife should be arranged in the order of their date of birth and then the children pension is allowed. 92. Is it necessary to open a separate bank account to draw the children pension? Yes. 93. Can the widow and children draw pension in different places/banks? No. The pension should be drawn by widow and children in the same bank and branch. 94. Who is eligible to get a Scheme Certificate? A member whose service is 10 years or more and not attained the age of 58 years will be eligible to receive the Scheme Certificate only. A member whose service is less than 10 years also may avail the Scheme Certificate.
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95. Whether a member/family member can avail 2 pensions under Employees’ Pension Scheme, 1995? No. 96. When and to whom the pensioner is to give a life and non-remarriage certificate? All pensioners drawing pension under Employees’ Pension Scheme, 1995 are required to give a Life/Non-Remarriage Certificate, duly attested by the Bank Manager/Gazetted Officer in the month of November each year. To be submitted to the Bank through which the pension is being paid. Failure to submit will result in stoppage of pension from the month of January. 97. Whether a Scheme Certificate holder with a service period of 8 years can avail the withdrawal benefit on surrender of Scheme Certificate. No. Only on attaining 58 years he can surrender either to avail the Pension (if eligible) or withdrawal benefit. 98. Whether the Orphan Children are eligible for double Orphan Pension where both the parents were making contributions under Employees’ Pension Scheme, 1995? Yes. The benefit under the Pension Scheme is a direct consequence of the contributions paid by the member of EPS, 1995, hence, if both parents were members and have contributed independently to the said Scheme, the Orphan will be eligible to two pension separately. The normal ceiling as provided for in the Employees’ Pension Scheme shall however, continued to apply. 99. Whether Withdrawal Benefit will be payable to a member in case of defaulting establishment?
In respect of an establishment defaulting in remitting contribution to the Employees Pension Fund 1995 for any period, withdrawal benefit will not be paid to the member in respect of the default period. The member is entitled to withdrawal benefits only in respect of the period for which the contributions are received.
EDLI SCHEME
100.Whether Assurance benefit under EDLI Scheme is payable for death away from service?
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No. Admissible only in case of death while in service. 101.To whom the EDLI benefit is payable? EDLI benefit is payable to the persons eligible to receive the EPF dues. 102.Whether Assurance Benefit is payable to missing EPF member ?
Payment of Assurance Benefit under EDLI Scheme 1976 in respect of missing EPF members is not contemplated.
SETTLEMENT OF PF FINAL ACCOUNTS
103. In case the PF amount is not settled within 30 days to whom the matter is to be reported? He can approach the Regional P.F. Commissioner in charge of Grievances or he can appear before the Bhavishyanidhi Adalat being conducted on 10th of every month. 104. Is there any time limit for withdrawal of Provident Fund dues? Only in the case of resignation from service a member has to wait for a period of two months for withdrawal of the PF dues. 105. When the employer is not attesting the claim form how to submit the application for withdrawal of provident fund? It is the duty of the employer to attest the application form. In case of any dispute, the member may attain attestation preferably from the bank in which he has maintained his account and thereafter submit the same to Regional PF Commissioner, explaining the reasons for not obtaining the signature of the employer. The Regional P.F. Commissioner will pursue the matter with the employer wherever necessary. 106. What is the time limit fixed for disposal of the application for advances/settlement? On submission of the claim with full particulars and documents etc, it will be disposed within 30 days.
TRANSFER
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107. In case of change in employment whether a member can get his PF account transferred? On change in employment, the member should necessarily get his PF account transferred to his present establishment, duly submitting Form 13(R ) 108. If past accumulations are not transferred on cancellation of exemption, how the provident fund amount is paid to the members? The EPF authorities will ensure transfer of securities/cash and arrange for refund of dues to the members. 109. How a PF member will be informed of the transfer effected? A copy of Transfer Certificate issued to the transferee Regional P.F. Commissioner/P.F. Trust giving full details of the transfer will be sent to the concerned member also.
INTEREST
110. What is the method of crediting interest to the P.F. subscribers? The compound interest is credited on monthly running balance basis at the statutory rate declared for each year.
ISSUE OF ANNUAL ACCOUNTS
111. Whether the annual statement of accounts will be issued to the members who are out of employment? Yes. Issued till the account is transferred to Unclaimed Deposit; in such cases the member may approach the Regional P.F. Commissioner concerned for obtaining the statement of account. 112. Is the P.F. Statement of Accounts is issued only after full payment of dues by the employer is made for the whole year? No. The statement is issued to the extent the amount is received in the financial year. 113. Why there is no statement of accounts for pension amount and why the Pension contributions are not shown/reflected in P.F. Annual Statement of Accounts.
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The Annual statement of accounts is issued only for the PF balances. The pension contributions are credited to the Pension Fund and no running account is kept in respect of a subscriber because the benefit under Pension Scheme is not related to the quantum of pension contribution paid. It purely relates to the age, wage and service of the member, on exit from employment. As such the pension contributions are not required to be reflected in the PF Annual Statement of Accounts.
ADVANCES AND WITHDRAWALS
114. Whether provident fund provides for any refundable loan for Housing etc.? No.
MODE OF PAYMENT
115. Can a member withdraw the entire amount through money order? No. The ceiling for withdrawing the PF amount by money order is only upto Rs.2,000/-. 116. Whether pension can be paid by money order or cheque? No. Pension is payable through the designated bank/Post Offices, notified for each region. 117. I like to know more about Employees’ Provident Fund Organisation. Please visit EPFO Website: www.epfindia.com
