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Netmeds Marketplace Limited
Presented By VIMAL
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HUMAN RESOURCE DEPARTMENT
The Employee’s Provident Fund Act 1952
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The Employee’s Provident Funds Act 1952
Employer role & responsibility Employee role & responsibility The Employees Pension Scheme 1995 The Employees Deposit-Linked Insurance Scheme (EDLI) 1976 List of Forms
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The Employee’s Provident Fund Act 1952
Introduction
Salary consists of two parts i.e. earnings & deductions
Provident Fund is one of the statutory deduction done by the employer at the time of salary payment
Provident Fund is governed by the Employee’s Provident Fund Act 1952
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Introduction Provident Fund has come into force to give better future to employees
on their retirement & his dependents in case of his death during employment
The Employees Provident Funds Act 1952 is compulsory contributory fund for the future of an employee after retirement or for his dependents in case of his early death
Act is applicable to all states of India except Jammu and KashmirApplication Every industry employing 10 or more persons (180 industries are
specified in Schedule 1 of the Act) Every industry employing 10 or more persons which the Central Govt.
may notify Any other establishment notified by the Central Government even if
employing less than 10 persons5
The Employee’s Provident Fund Act 1952
Eligibility & Entitlement Every employee employed directly / through a contractor who is
in receipt of wages are eligible to become a member of the fund (exception - Apprentice under the Apprentices Act and casual laborers)
Irrespective of permanent / probationary employees, all employees are eligible for joining the PF scheme from the date of joining the service
Minimum 10% of the basic pay for establishments employed less than 10 persons; sick industries declared by necessary authority; Jute, Beedi Brick, Coir & Guar Gum Industries / Factories
Other industries maximum 12% of the basic pay A member can contribute voluntarily more than statutorily
prescribed rate (up to 100% of basic salary) which will be transferred to his PF A/c 6
The Employee’s Provident Fund Act 1952
Calculation 12% contribution by the employee is directly transferred to his
Provident Fund A/c 12% is contributed by the employer out of which 8.33% is
credited to Employee Pension Fund and the balance 3.67% is transferred to PF A/c of the employee
1.10% Administration charges on total wages are payable by the employer
0.50% EDLI calculated on total EDLI slab (INR 6500) wages and payable by the employer towards EDLI fund
0.01% EDLI Administration charges calculated on total EDLI slab wages are payable by the employer
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The Employee’s Provident Fund Act 1952
Benefits Employees can take advances / withdraw the PF in case of retirement,
medical care, housing, family obligation, education of children & financing of life Insurance Polices
Up to 90% of the PF amount can be withdrawn at the age of 54 years or before one year of actual retirement
PF amount of the deceased member is payable to nominees / legal heirs Immediate income tax exemption under Sec 80C of IT Act Equal contribution by the employer Interest rate is usually higher than the prevailing market rate (present
interest rate @ 8.5%) PF A/c can be transferred if any member changes from one establishment
to other where the PF Scheme is applicable Totally tax free returns
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The Employee’s Provident Fund Act 1952
Interest Interest is credited to the members PF A/c on monthly running
balance Interest rate is fixed by the Central Government in consultation with
the Central Board of trustees of EEPF every year during March / April The present rate of interest is 8.5%
Nomination The member can nominate other person / persons to receive the
Fund amount in the event of his death The nomination details provided by the members are maintained at
the Regional Provident Fund Office for use in the event of death of the member
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The Employee’s Provident Fund Act 1952
Full Settlement PF A/c settled immediately under the circumstances;
Retirement after 58 years Retirement on account of permanent incapacity Termination of service on retrenchment Voluntary Retirement Scheme (VRS) Permanent migration from India to settle abroad / taking
employment For female members leaving service for getting married
PF A/c settled after two months under the circumstances; Resignation from the services
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The Employee’s Provident Fund Act 1952
Advances / Withdrawals Purchase of site for construction of house / construction of
House / purchase of flat Additions / alterations / improvements to the house Repayment of loan Hospitalization for more than a month / major surgical
operation / suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc.
Marriage of self / son / daughter / sister / brother Education of son / daughter Abnormal conditions like natural calamities Physically handicapped member for purchasing an equipment to
minimize the hardship due to handicap11
The Employee’s Provident Fund Act 1952
Employer Role & Responsibility
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The Employee’s Provident Fund Act 1952
Monthly Returns
Filing monthly PF returns with the EPFO within 15 days of the close of each month
Provide list of new employees joined in the establishment during the preceding month & are qualified to become member in fund (Form-5)
Provide list of employees leaving service during the preceding month(Form-10)
Employer should file 'Nil' returns if there is no new employee or no employee leaving the service during the preceding month
Provide the total no. of members last month, new members joined and existing members resigned in the preceding month & total no. of present subscribers to be fund (Form-12A)
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The Employee’s Provident Fund Act 1952
Annual Returns Employer shall send to the Commissioner within one month of the
close of the year, a consolidated Annual Contribution Statement (Form-6A) and individual employee sheet (Form-3A) showing the contributions made by the employees and employer during the year
Penalty 12–37% interest is payable for the delayed period in remitting
contributions/ administrative charges depending upon the delayed period
Exemption Employer can seek exemption from the Scheme if similar / better
benefits are provided other than the Scheme by forming a Voluntary PF Trust which will work under the rules & regulations of EPFO
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The Employee’s Provident Fund Act 1952
Employee Role & Responsibility
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The Employee’s Provident Fund Act 1952
Provide details of self & nominees (Form-2) for PF & Pension Scheme at the time of joining the establishment
In case of already having PF A/c, apply for transfer of previous A/c to the present A/c
If willing to increase contribution, inform the same to the employer to deduct the amount from the salary (Voluntary Provident Fund).
Voluntary PF can be up to 100% of wages Understand that the employer is not liable to pay any contribution
on voluntary PF Periodically verify the details maintained by the employer Don't allow employer to deduct his share of contribution/
administrative charges payable by him from the wages Understand that Employees' Provident Fund Organization does not
have any agent / middlemen16
The Employee’s Provident Fund Act 1952
Employees Pension Scheme 1995
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The Employees Pension Scheme 1995
Introduction To give long term protection / financial security to employee upon
retirement and his family in case of his pre-mature death, family pension scheme has come into force by diverting 8.33% contribution made by employer towards PF scheme
Application Scheme is compulsory for all the existing members who become
members of the Employees Provident Fund SchemeEligible Monthly pension to employees on retirement Widows on death of the member Children of the member below 25 years age Monthly pension to members upon permanent total disablement
during service 18
The Employees Pension Scheme 1995
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The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)
The Employees Deposit-Linked Insurance Scheme 1976
(E.D.L.I)
Application EDLI scheme is compulsory for all the existing members
who become members of the PF Scheme Life insurance benefit (death coverage) of the employee is
available under this scheme while in serviceCalculation EDLI is calculated on EDLI slab – INR 6500/- 0.50% EDLI calculated on total EDLI slab (INR 6500/-)
wages and transferred to EDLI fund 0.01% Administration charges calculated on total EDLI
wages EDLI / administration charges are payable by the employer
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The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)
Eligible Person who is eligible to receive PF dues of deceased
member who died while in service is only eligible to receive EDLI fund
Exemption Employer can seek exemption from the Scheme if
similar / better benefits are provided other than the Scheme with the consent of majority of employees (Ex: IJM opted LIC as it is giving death coverage of INR 1,60,000/- under EDLI instead of INR 60,000/- given by EPFO) 21
The Employees Deposit-Linked Insurance Scheme 1976 (EDLI)
List of Forms
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Forms
Forms For Claiming Benefits Under PF Scheme
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List of Forms
Form Purpose
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For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme
14 Application for financing a life insurance policy out of PF A/c
19 To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination
20In the event of death of member, this form is to be used by a nominee / family member to claim the member's PF accumulation
31 To be used by PF members to avail advances / withdrawals as provided in the scheme
Forms For Claiming Benefits Under Pension Scheme
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List of Forms
Form Purpose
10 CFor claiming :- Refund of Employer share- Withdrawal benefit- Scheme certificate for retention of membership
10 DTo be submitted by the first claimant i.e.- member - widow / widower- nominee
Forms For Claiming Benefits Under EDLI Scheme
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List of Forms
Form Purpose
5 (I.F)To be submitted by the person eligible to receive the PF A/c dues of the deceased member who died while in services
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