Provident FundPension SchemeGratuity

Presentation by:Babitha S

Ashwini Kamath U

Employees Provident Fund

Introduction

One of the Statutory deduction done by the employer at the time of salary payment

Governed : The Employee’s Provident Fund Act 1952 .

Better future to employees on their retirement & his/her dependants in case of his death during employment.

Applicable to all states of India except Jammu and Kashmir.

Application

Every Industry employing 10 or more persons.

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 persons.

Every employee- Directly or Contractor

Permanent / probationary employees- from the date of joining the service.

Minimum 10%: Establishments which has less than 10 persons and sick industries.

Other industries maximum 12% of the basic pay.

Voluntary Contribution- up to 100%- Transferred to PF a/c.

Eligibility & Entitlement

Calculation

12% contribution by the employee’s Basic Pay is directly transferred to his Provident Fund A/c.

12% = 8.33% credited to Employee Pension Fund + 3.67% transferred to PF A/c of the employee.

Interest and Nomination

Interest Credited to the members PF A/c on monthly running balance.

Interest Rate: Fixed by the Central Government : 8.5%

Nomination Nominate other person / persons to receive the Fund amount

in the event of his death.

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- self / son / daughter / sister / brother

Education-son / daughter

Abnormal conditions- natural calamities

Physically handicapped member.

Employees Pension Scheme

Pension Scheme

Introduction To give Long term protection / financial security to employee upon

retirement and his family in case of his pre-mature death, family pension scheme has come into force by diverting 8.33% contribution made by employer towards PF scheme

Application Scheme is compulsory for all the existing members who become

members of the Employees Provident Fund Scheme

Eligible Monthly pension to employees on retirement Widows on death of the member Children of the member below 25 years age Monthly pension to members upon permanent total disablement during

service.

Payment of Gratuity

Introduction

Lump sum payment made by an employer as the retrial reward for his past service when his employment is terminated.

It extends to the whole of India. Applicable to:

Every factory, mine, oil field, plantation, port and railway company;

Every shop or establishment in which 10 or more persons are employed, or were employed, on any day of the preceding twelve months.

Gratuity when payable ?

Gratuity shall be payable to an employee Who has rendered continuous service for not less than 05

years Termination of his employment Retirement Resignation Death or disablement due to accident or disease.

Note:-The completion of continuous service of five years shall not be

necessary where the termination of the employment of any employee is due to death or disablement.

How to calculate the Amount of Gratuity?

Nomination

Employee – If completed one year of service - Nomination for to receive the amount of gratuity.

In his nomination, an employee may distribute the amount of gratuity payable to him amongst more than one nominee.

If at the time of making nomination he has already family, he can not make nomination in favor of a person who is not a member of his family. If he does so it shall be void.

Fresh nomination in favour of one or more members of his family is required where he has not family at the time of making nomination.

If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who can make a fresh nomination.

Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.

Determination of the amount of Gratuity

Thank You