summer training project report on provident fund and pension scheme

INTRODUCTION

[1]

CHAPTER: -1

1.1 INTRODUCTION

In this project I had done the field work on MAHARAJA WHITELINE

INDUSTRIES LIMITED just to understand the working condition of an

organization at MWIL there were three departments one was of the production

department, marketing department &HR department... In this project I have

done my training on HR department .My main aim is to learn trends and

technique .Human resources is one of important part for the growth of

industrial organization.

For growth of industry .Industry must take care of human aspect .HR plays a

vital role in controlling the human aspect.

1.2 COMPANY PROFILE

Maharaja Whiteline Industries Ltd. Is an Indian based consumer products

manufacture company. Maharaja Whiteline has over 30 yrs. of Experience

in the home appliances market and is known for being an innovator and

market leader in the Indian consumer manufacturing sectors. Maharaja

Whiteline, India’s most trusted family brand is back with its new range of

products. Whiteline started its foray into home appliances in 1976. The

company commenced its venture as a one product company. Today

Maharaja dominates a share of about 22% in home appliances with a

product range of over 60 products in 18 product categories. The company

has already sold off billions of kitchen appliances in the past 3 decades.

Behind this successful story is vision of Harish Kumar, Managing Director,

Maharaja Whiteline Group, a dynamic and a self motivated first generation

entrepreneur.

[2]

Harish Kumar

Maharaja Whiteline started its operations in 1976 and now the company

enjoys the undisputed leadership position in Indian Appliance industry. In

addition to this,today the ‘Maharaja’ employs over 1000 qualified &

professional work force, ready to take up the challenges of the new

millennium and build the company into a global appliance leader. The

company has a huge Manufacturing infrastructure base with a plant in

Baddi (HP).

Recently, Maharaja has acquired Gem and Beltek, and has diversified its

range into the consumer durable industry the company is soon launching a

range of sealing fans and office accessories. In near future, Maharaja

Whiteline plans to export its products in the SAARC countries.

1.3 EMPLOYEE PROFILE

The Corporation's employee strength as on January 1, 2012 was over 1500.

There are 310 women employees. Maharaja Whiteline unique work culture

is based on trust, openness and a commitment to creativity and

consultation. The organization identifies each and every one of its

[3]

employees as an achiever who will make a difference. The experience and

the knowledge gained by its people in building this mammoth organization.

1.4 ENTREPRENEURIAL CULTURE

Maharaja White line Appliances encourages employee participation in

management and suitably rewards innovative suggestions. Participative

forums in the form of joint management councils, quality circles,

suggestions scheme, etc. enrich its work culture.

1.4.1Career growth opportunities:-

MAHARAJA WHITELEINE inducts officers at the junior-most level of

the management hierarchy. First division professional degree holders and

post-graduates from relevant disciplines are recruited as management /

engineer trainees, accounts officers, sales officers, purchase officers,

production officers, quality officers, etc.

Job rotation and inter-location transfers throughout the country facilitate

planned development of careers and broaden outlook. Career growth

opportunities are based on the individual's performance and contribution to

the common goal of sustained growth. Maharaja Whiteline top executives

have grown from within -- a testimony to the unlimited opportunities for

growth available to the meritorious.

1.4.2 Welfare of employees:-

Apart from attractive scales and perks, Maharaja Whiteline Appliances

provides its employees many facilities and welfare measures which are

continuously upgraded. The medical insurance facilities provided to every

employee.

[4]

1.5 CORPORATE VISION

To Reach Every Indian Household With White Goods And Home

Appliances.

1.6 CORPORATE MISSION

We are a group committed to produce the Highest Quality and Best

Value Appliances and White Goods. To achieve this, we constantly

endeavor to exceed our customer’s expectations. In doing so we shall

build enduring, long-term relationships with all our stakeholders.

1.7 THE MANAGEMENT

1.7.1 Board of directors:-

Mr. Harish Kumar

Mr. Ravi Mehra

Mr. Ramesh Gaur

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1.7.2General Managers:

Mr. Rakesh Bhalls (GM Sales)

Mr. Rahul Bhatia (GM Purchase)

Mr. G M Bomhra (GM Operation)

Mr. G S Kanwal(GM R&D)

1.8 THE COMPANY’S MAJOR UNITS

Head office: 1/7 West Patel Nagar, New Delhi

Manufacturing unit:

Plot no. 5-6, Industrial Area Baddi Distt. Solan, HP

Branch offices:

A-166, Subash Nagar Shopping Centre Jaipur, Rajasthan

E-A-1/10, Transport Nagar, Kanpur Road, Lucknow (UP)

38, Harbans Nagar, Meerut Road Ghaziabad (UP)

Plot No 21, 23 & 26 Mohabawala Industrial Area, Mohabewala,

Dehradoon,

[6]

Uttranchal

2759, Gurdev Nagar, Ludhiana, Punjab

Vidyawati Building., G.T. Road. Kundli, Haryana

Panchal Compund, Behind Betala Force Lasudia Morie, Dewas Naka,

Indore (M.P.)

229 B, Srikrishna Puri, Boring Road Patna, Bihar

Old no-6, Senfunther Street Shenoy Nagar, Chennai (T.N.)

BC-32, Sec.-01, Salt Lake, Kolkata – 64 West Bengal

Plot No 892, Palasuni Chhack, Opp Canal Road Palasuni,

Bhubaneswar -10, Orissa

IInd Floor, Patkar Bldg., Above Samant Diary, Kelkar Road,

Dombivali (E), Maharasthra

Narnarayan Estate, Near Mahaluxmi Textiles Mills, Ishnpur Narnol

Road, Narnol Ahemdabad Gujarat

33-16-30 A, Ramanandhan Street, Kasturibaipet, Vijaywada. AP

No.-06, 07th Cross, Old Guddadahalli, Bangalore – 26 Karnataka

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1.9 DISTRIBUTION NETWORK

Clearing and Forwarding agents - 15

A strong sales force of over 400 people.

400 Distributors and Stockiest

16000- Retailers and Dealers

1.10 DIVISIONS AND ORGANIZATION

The company comprises of following divisions:

Appliances Division

White Goods Division

1.11 FIRSTS TO ITS CREDITS /

ACHIEVEMENTS

1st company to launch 3 Jar Mixer.

1st company to launch Juicer Mixer Grinder.

1st company to launch Dishwasher.

1ST company to launch Halogen Heater

1.12 PRESENT CUSTOMER BASE

12 million Mixer Grinders.

6 million Juicer Mixer Grinder.

3 million Electric Iron.

[8]

1.13 HUMAN RESOURCE AT MAHARAJA

WHITELINE APPLIANCES

1.13.1 Organizational hierarchy

[9]

Vice President Sales

National Sales Manager

Regional Sales Manager

Branch Manager

Areas Sales Manager

Sales Officer

The above is the hierarchy at Maharaja Whiteline Appliances, Patel

Nagar, Head Office. Starting from Sales Officer, the highest job position

is of Vice President Sales. Promotions are made in the above sequence

only. Recruitment is made from the Naukri.Com and HR Consultant for

all the above posts.

1.14 GOLDEN EYE VISIONS

Golden eye vision is nothing but it is Maharaja Whiteline vision to

achieve

Prosperity. It is lies on

To provide quality, reliability and good value in the products we

sell and service and become market leaders in whatever we take up

for marketing ,

To improve our competitiveness by constantly increasing the

performance of our manufacturing, development, marketing and

administrative functions i.e. price competitiveness.

To develop the right relation between the company and all its

customers so that the customers needs are met simply and

effectively.

To be on always dynamics whether markets are good or bad.

1.15 QUALITY POLICY

The quality policies made by Maharaja Whiteline are:

1. Continual improving technical as well as self of our team members

and service provides through training and awareness.

2. Continual improvement in the effectiveness of our quality

management system by way of improvements in all our operation.

3. Providing product relating market feedback to the business unit for

continuous product improvement.

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4. Making service properly available through our service provides and

maintaining the progress by our team members.

1.16 AFTER SALES-SERVICE ACTIVITIES

After sales service activities of Maharaja Whiteline are compete with

others companies.

In the below there are after sales-service activity of some companies.

1.16.1 MAHARAJA WHITELINE:-

The sales service activities by the maharaja whiteline are average in

South Delhi. Customers are highly satisfied in some of the market of

South Delhi but some of the markets are also very disappointed with the

after sales and services facility provided by the Maharaja.

Customers lodge their problems into dealers or shop from where

customers buy their product. In a quick service by technician of

Maharaja solve problems in a short time or time interval. Company also

provides the home service i.e. first in first out. If the product is on

warranty period than there is no charge require for the service or

maintenance, otherwise pay a amount as per the company policy. If any

customers is facing problem for delaying the service from the

shops, they can lodge their problem into Maharaja Whiteline customer

care service provider in the office.

My survey report is showing that 62% customer of Maharaja Whiteline

user in South Delhi market are satisfied on service provided by

Maharaja Whiteline and 43% customers lodge that solve their problem

within a week.

[11]

1.17 COMPETITORS OF MAHARAJA

WHITELINE

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1.18 PRODUCT PROFILE

Maharaja Whiteline Industries Ltd. caters to almost all the Home

appliances products which are required in normal day-to-day life from

morning till night. Some of example are in the sequence of morning to

night are :- water heater, tea/coffee maker, ovens, toasters, mixer

grinder, food processer, steam & dry irons, air-coolers, heaters, gas

stoves, emergency lights, etc. the company sources distribution, more

than 16000 Retailers & Distributors for selling mixers and appliances

and have service centre to take care of its strong brand and after sales

services.

Home Appliances:

Home Appliances: kitchen Appliances:

T.V. Juicer Mixers Grinder

Refrigerator Mixer Grinder

Washing Machine Wet Grinder

Halogen Heater Rice Cooker

Air – Cooler Food Processors

Geysers Toasters

Vaccum Cleaner Hand Blender

A.C. Cooktop

Music System Juice Extractor

[13]

Iron, DVD Player Microwave Oven

1.18.1 MODELS OF MAHARAJA WHITELINE

MIXER GRINDERS &

FEATURES:

SMOOTHIE MAKER

JUICER MIXER

GRINDER

MX – 113

REAL JUICER MIXER

GRINDER

JX - 207

ULTIMATE JUICER

MIXER GRINDER JX -

205

- Convienient stir stick

- High Low pulse &

- Switch off button

- Stainless steel blades

- Spout to dispense

smoothie

- 450 W heavy duty motor

- 2 jars

- 1 See through blender jar

- 1 stainless steel chutney

jar

- Shock proof ABS body

- 450 W heavy duty

motor

- 4 jars

- Online juicer jar

- See through blender jar


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- Detachable jar


- Thermal overload

protection

- 1. 8Itr. capacity larger PC

smoothie jar

- 600 W powerful motor

- Circuit breaker

- Overload preventation

mechanism

- 30 minutes rating

- 2 Speed piano switch with

pulser

- Overload preventation

mechanism

- 30 minutes rating

NOVA

JUICER MIXER GRINDER

JX - 204

MARK - I

JUICER MIXER GRINDER

JX - 201


- 3 jars

- Online pulp remover



- Overload preventation mechanism

- 30 minutes rating

- With full apple insertion in single

time.


- 2 jars



- Overload preventation mechanism

- 30 minutes rating

- 1 stainless steel chutney jar.

[15]

1.18.2 MODELS OF MAHARAJA WHITELINE

NEW AIR - COOLERS & FEATURES:

Bravo Macho

-Large 65 Ltr. water tank capacity

-Auto Louviers for uniform

distribution of air.

-Aroma Stick for Fragrance

-Base mounted powerful fan

for noiseless performance

-Rust proof all ABS body

-Four way air deflection system

-Low Noise

-Latest state-of-the-art design

-Uniform water distribution

-Rust proof all ABS Body

-Special Wood wool

evaporative pads

-Large 45 Ltr. water tank

capacity

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-3 side easy to open side grill

Bravo DLX


-Unique Rotary grill Design for

all round air Deflection


-Base mounted powerful fan

for noiseless performance


[17]


-Auto Louviers for uniform

distribution of air


-Base mounted powerful fan for

noiseless performance


[18]

1.18.3 Range of White goods

Refrigerator

- Stainless Top freezer

- Refrigerator with Internal

- Dispenser

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Washing Machine:

8.0kg capacity

Easy Movement

100% Rust Proof Body

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1.18.4 MAHARAJA WHITELINE PRODUCTS:

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CHOPPER ATTACHMENT

FUNCTION OF CHOPPER ATTACHMENT:

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1.18.5Purchase occasions

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1.18.6 Exhibition of Maharaja Whiteline in IITF’08

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1.19 CONCEPTUAL FRAMEWORK

1.19.1 Provident fund

It is a non-security fund and it is the form of saving.

There are mainly four types of provident fund- statutory provident fund,

recognized provident fund, unrecognized provident fund and public provident

fund.

1.19.2 Statutory provident fund: -

Statutory provident fund was set up in 1925.

Government, semi-Government organizations, Local authorities, railways,

Universities and Educational Institutions, maintain this fund. In statutory

provident fund, contribution from the employer is exempt from tax. Deduction

under section 80C of employee’s contribution is available to the interest

credited to the provident fund which is exempt from tax and the lump sum

amount which is paid at the time of retirement is also exempt from tax.

1.19.3 Recognized provident fund: -

Recognized provident fund is referred in

this manner because it is recognized by the Commissioner of Income Tax

according to the rules of the Income Tax Act. When the commissioner of

Income Tax recognizes this fund, it becomes recognized also by the provident

fund commissioner. Recognized provident fund is also contributed to in the

same way as statutory provident fund, i.e. both by the employer and the

employee. Contribution of employer & employee & interest are also exempt

but upto a certain limit.

1.19.4 Unrecognized provident fund: -

Unrecognized provident fund is

Taxable when the employer contributes to it but relief under section 80 is not

available to the investor. The interest which is credited to this account is,

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however, Taxable and the payment which is received in respect of the

employee’s own contribution at the time of retirement is also taxable.

1.19.5 Public provident fund:-

In public provident fund ,the employer does

not contributes amount. It is a fund provided for non-salaried people to

mobilize personal savings. Any person from the public, whether salaried or

self-employed, can open a public provident fund Account at any branch of

the state bank of India. In this fund the employer does not contribute, but

relief under section 80 is available and the interest credited to this fund is

exempt from tax. The amount received at the timed termination of this

contract is also exempt from tax.

1.20 CONTRIBUTION OF EMPLOYER’S AND

EMPLOYEE’S TOWARDS PROVIDENT FUND

According to Provident Fund Act, 1952, presently,

Contribution of Employer is 12% of Basic Pay + Dearness Allowance

Contribution of Employee is also 12% of Basic Pay + Dearness Allowance

IN MWIL:-

Contribution of Employer is 12% of Basic pay + Dearness Allowance

Contribution of employee (voluntary)

12% of Basic Pay + Dearness Allowance

Minimum: -12% of Basic Pay + Dearness Allowance

[31]

But in MWIL all the members to the Provident Fund (whether on

contact/regular/casual, even peon) contributes to the Provident Fund.

The reason behind this type of contribution by employees in MWIL is they are

not paid full monthly salary

1.21 HISTORY AND OBJECTS OF PROVIDENT

FUND AND PENSION SCHEME

The Employee’s Provident Fund & Miscellaneous Provisions Act, 1952

instituted a Compulsory Contributory Fund for the future of the employee

after his retirement or for his dependents in case of his early death.

In Welfare State like India the responsibility lies upon the state to provide for

some legislation whereby the workers working in factories or other

establishments may get some financial assistance in old age. Such measures

are common features in industrially advanced countries. But due to various

difficulties particularly financial and administrative, the state could not enact

a law, which could provide some measure of financial security to workers in

his old age, or their families or dependents after death. A way out was found

and a Contributory Provident Fund Scheme was conceived in which both

employer and employee would contribute and the funds so raised could be

depended upon to held the worker in old age.

The first legislative measure in India to cover industrial workers was the Coal

Mines Provident Fund & Bonus Act, 1984.the legislation was designed to

make adequate provisions for the future of labor in coal mines, to inculcate in

them a habit of thrift and to stabilize the labor force in the coal mining

industry.

[32]

As a result of the experience gained out of working of the coal mines

Provident Fund Schemes and because of the persistent demand made of the

central government for extending similar benefits to workers employed in

other industries the employees Provident Fund Act was passed in 1952.

The object of the act is to provide for the institution of Provident Fund &

Family Pension And Deposit Linked Insurance Scheme for employees in

factories and other establishments. The provisions have been made for the

better future of the industrial workers on his retirement and for dependents in

case of his death while in establishment

1.22 EXTENT AND APPLICATION OF PROVIDENT

FUND AND PENSION SCHEME

The act extends to the whole of India except the State of Jammu and

Kashmir.

Subject to the provisions of sec 16, the act applies to: -

Every Establishment which is a factory engaged in any industry

manufacturing: -cement, cigarattes, electricals or general engineering

products iron and steel, paper, textile, mathes, edible oils, fats, sugar, rubber,

electricity, tea, painting, glass, stonewares, pipes, sanitary wares, electrical

porcelain, insulators, tiles, heavy and fine chemicals, indigo, lac, non-edible

vegetables and animal oils and fats, mica, plywood, fruits, & vegetable

preservation, confectionary etc.

1. Every Establishment, which has 20 or more persons employed in it.

2. Any other Establishments employing 20 or more persons, which the Central

Government may by notification in the Official Gazette, specify in this

behalf.

[33]

However, the Central Government may after giving not less than two months

notice of his intention so to do, by notification in the Official Gazette, apply

the provisions of this act to any establishment employing less than 20

persons.

1.23 CONTRIBUTIONS

The act lays down that both the employer and employees shall contribute

towards the fund.

1.23.1 Employer’s contribution The employer is required to contribute tee following amounts: -

(1) Towards Employee’s Provident Fund and Pension Fund

In case of establishments employing less than 20 persons or a sick unit or any

establishment in the Jute, Beedi, Coir or Gum Industry

12% of the basic pay, Dearness Allowance in case of all other establishments

employing 20 or more persons

12% of wages and Dearness Allowance

A part of contribution is remitted to the Pension Fund and the remaining

balance continues to remain in Provident Fund Account.

Where, the pay of an employee exceeds Rs 6500 p.m. the contribution

payable to pension fund shall be limited to the amount payable on his pay of

Rs 6500 only. However, the employees may voluntarily opt for the

employer’s share of contributions on wages beyond the limit Rs.6500 to be

credited to the Pension Fund.

[34]

Where the amount of any contribution involves a fraction of a rupee, the

scheme may provide for the rounding off of such fractions to the nearest

rupee, half of a rupee, quarter of a rupee.

For the purposes of the contribution to Provident Fund u/s 6,

Dearness Allowance shall include cash value of any Food Concession

Allowed to the employer of any factory of other establishment during

any period, in which the establishment is not working, for retaining his

Service.

The contribution in respect of employer and employees is to be paid in first

instance by the employer. The employer is under a duty to pay both his & the

employees share of the contribution irrespective of whether a demand has

been made on him or not. The employer shall, in turn deduct the employee’s

share from wages due to him. It is thus the employer who has to bear the

ultimate liability of contributions.

1.24 EMPLOYEES PENSION SCHEME

Under the Employees Provident Funds and Miscellaneous Provisions Act,

1952 and Employees Family Pension Scheme, 1971 has been drafted. This

scheme applies to employees of all factories and other establishments to

which the act applies and came into force on 1st March 1971. This scheme

applies to every employee who becomes a member of employees provident

fund on or after 1st march 1979 and continues to be a member until he

becomes entitled to withdraw the benefits to which he is entitled under the

scheme or dies whichever is earlier.

The Central Government may, by notification in the official gazette, frame a

scheme to be called employees pension scheme for the purpose of providing

for: -

[35]

Superannuating Pension, Retiring Pension, Or Permanent Total

Disablement Pension to the employees of any establishment or class of

establishment to which this act applies; and

Widow or Widower’s Pension, Children Pension Or Orphan Pension

payable to the beneficiaries of such employees

1.25 CONTRIBUTION TOWARDS PENSION

Such sum from employee’s contribution u/s 6,not exceeding 8.33%

of basic pay, dearness allowance, retaining allowance if any, of concerned

employee, as may be specified in pension scheme.

On establishment of Pension Fund, the Family Pension shall cease to operate

& all assets of ceased scheme shall vest in and shall stand transferred to, and

all liabilities under the ceased scheme, shall be enforceable against the

pension fund. The beneficiaries under the ceased scheme shall be entitled to

draw the benefits, not less than benefits they were entitled to under the ceased

scheme, from Pension Fund.

The Pension Fund shall vest in and be administered by the Central Board in

such manner as may be specified in Pension Scheme.

1.26 LOAN SANCTIONED TO THE EMPLOYEES

Another advantage made available to the employees of MWIL. is that they

can take loans from Provident Fund Trust of the company.

Types of loans

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Refundable Non-Refundable

Refundable: -

The refundable loan involves re-payment of the whole amount of the loan

sanctioned to the employees in installments with interest @ 1% higher then

the interest rate paid to the employees on the amount of Provident Fund.

Non- refundable: -

The amount withdrawn by the employees is deducted from the balance

remaining to the Provident Fund account of the Employees.

Presently in MWIL. Procedure of Non-Refundable Loan is followed and

reduction in the balance of provident fund encouraged the employees to

contribute 70%-80% towards provident fund.

In a financial year, trust is entitled to sanction loan for 3 times to the

members.

2 times for social obligation (marriage, engagement, birth, any other

occasion)

Amount of loan sanctioned for social obligation =9 months basic salary +

dearness allowance

Formalities: - Submission of loan application

In case of Marriage of a dependant child;

18 months basic pay =dearness allowance

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Formalities: -submission of loan application with marriage card attached to

it.

Note: -Loan is sanctioned out of employee’s contribution only.

1) 1 time for purchase of house/plot/construction of house.

For purchase of house/construction of house

36 months basic salary + dearness allowance

Formalities: -

Title/ownership deed

Blue Print

Estimate

Copy of salary slip

Loan For purchase of plot

24 months basic salary + dearness allowance

Formalities: -

Agreement copy of purchase of house/proof of advance submitted

to the seller

Proof of ownership of seller.

Note: -Loan is granted out of employer and employee’s contribution.

Condition: -Time lag between 2 loans is 90 days and also employee should

have completed a tenure of 5 years in service for the sanction of house loan.

In other organization the legal formalities involved with the sectioning of the

loan are much more than what is in MWIL.

In MWIL. Negligible formalities are required to be fulfilled by the employees

for sanctioning loan to them.

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CHAPTER: -2

REVIEW OF LITERATURE

BACKGROUND OF EMPLOYEES' PENSIONSCHEME 1995

The employees’ provident funds and Miscellaneous Provision Act, 1952

provided social security benefits to the employee through Employees’

Provident fund Scheme 1952 by creating a provident fund to which both the

employers and the employees contribute a percentage of the wages of the

employees in equal share. However this scheme was not found adequate to

meet the social security need of the employees and there was demand for the

introduction of a Pension Scheme. Accordingly on 1st march 1971 a Scheme

to provide pension to the family of the employee who died in service was

introduction called the family pension scheme, 1971. The important

provisions of Family Pension Scheme, 1971 were as follows:

2.2 Benefits under the provisions of family pension scheme,

1971, the following benefits were provided to the members

and their families.

1. Life‐long pension to spouse upon death of the member while in service.

2. Pension to one child (eldest) up to age 25 (or marriage, if

earlier, in case of female child) upon death/re‐marriage of the spouse

of the spouse pensioner.

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3. Life Assurance benefit of Rs 5000/‐ to the widow/ widower/

nominee upon death of the member, provided that the contribution

to the Pension fund were received for a period of at least 3

months.

4. Return of employee share of contribution (with interest) to the

family upon death of the member before putting in 3 months of service

.

5. Return of employee share of contribution (with interest) to the member

upon cessation of membership before putting in 1 year of service.

6. Retirement‐cum‐Withdrawal benefit to the member upon cessation of

membership after putting in at least 1 year of service.

The benefits under the Family Pension Scheme were reviewed periodically and

by 1995 minimum monthly pension was Rs 250/‐ for the lowest salary slab

(up to Rs 300/‐) and the maximum was Rs 1050/‐ for the highest salary slab

(Exceeding Rs 2500/‐).

Quantum of Retirement‐cum‐Withdrawal benefit was as per the rates in the

table provided in the Schedule of Employees’ Family Pension Scheme 1971,

which provided for a minimum of 0.2 times the wage at cessation for 1

year of contributory service and a maximum of 12.08 time the wage at

cessation for 40 years of contributory service.

2.3 FUNDING

The Scheme was funded by contributions made from three sources viz

the employee, the employer and the Central Government.

Each contributed 1.16% of the wage of employee every month. Thus, a total of

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3.48% of the member’s wage was contributed every month towards the

Family Pension Fund.

The Employee’s and the Employer’s contributions came by way of diversion

from PF contribution. In other words, out of the contributions made by the

Employee and the Employer towards the PF account of the member 1.16%

of wages and solely for the Family Pension Fund. The Central Government

in addition met was diverted to the Family Pension Fund. The Central

Government’s contribution i.e.1.16% came directly to the entire cost of admini

stration of the Family Pension Scheme.

However, the wage upon which 1.16% was to be calculated was restricted due

to a statutory limit on wages on which contributions could be made.

The wage limit was revised from time and the details are in Appendix4.

2.4 TRANSITION TO A NEW SCHEME:

Soon after its launch in 1971, demands were raised that the old age security

benefit should also be provided to the member. In other words, pension to the

upon retirement/superannuation, and in case of contingencies like disability

was being member demanded. The Government acceded to these demands

by notifying a new Scheme with effect from 16.11.1995, called the

Employees’ pension Scheme, 1995 replacing the erstwhile family

pension scheme ,1971 and the net assets of the Family Pension Scheme

1971 were transferred to Employees’ Pension Fund.

2.5 FEATURES OF THE EMPLOYEES' PENSION

SCHEME 1995

Employees' Pension Scheme, 1995 not only provides improved benefits

to the families; it also provides pension and other benefits to the member.

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This scheme provides comprehensive benefits for members and within

the constraints of a funded scheme is providing for various contingencies.

2.6 BENEFITS UNDER THE PROVISIONS OF EMPLOYEES’ PENSION

SCHEME, 1995, TO THE MEMBERS AND THEIRFAMILIES.

1. Member Pension upon retirement /superannuation.

2. Member Pension upon disablement while in service.

3. Withdrawal Benefit upon leaving service after putting in less

than 10 years but more than six months of service.

4. Spouse Pension upon death of member.

5. Spouse Pension upon death of member as pensioner

6. Children Pension along with spouse pension (up to age 25).

7. Orphan Pension upon death or remarriage of spouse (up to age 25).

8. Disabled Child Pension to children/orphan (life‐long).

9. Nominee Pension to the Nominee when no family exists.

10. Dependent Parent Pension when no family and nominee exists.

2.7 BASIS FOR CALCULATION OF PENSION

The Pension to the member for service after 15.11.1995 is calculated by a simple

formula:‐

Pensionable Salary x Pensionable Service

70

Where,

Pensionable Salary = average salary on which contributions received/ receivable

during the last 12 months of service.

Pensionable Service = period of service during which contributions are

received or receivable

For service under Family Pension Scheme, 1971 i.e. prior to 16.11.95, past

[42]

service benefit is given which is added to the pension calculated as

above to arrive at the total pension.

2.8 FUNDING:

The Scheme is funded by contributions made from two sources viz. the

employer and the Central Government. The Government’s contribution

continued to be 1.16% of the member’ smoothly wage, contribution of

1.16% made in Family Pension Scheme, 1971 was discontinued in

Employees Pension Scheme,1995 and, the Employer’s contribution was increa

sed from 1.16% in Family Pension Scheme 1971 to 8.33% in Employees’

Pension Scheme, 1995. Thus, a total of 9.49% of the member’s

wage was contributed every month towards the Employees’ Pension Fund.

In this Scheme also, the wage upon which 8.33% and 1.16% are to be calculated

were restricted due to a statutory limit on wages on which contributions could b

emade. The wage limit was revised from time to time as per details in Appendix

4.

2.9 IMPROVEMENT OVER FAMILY PENSION

SCHEME'1971:

Several new benefits were provided to the members under Employees’

Pension Scheme, 1995. These are as follows:

1. Member Pension upon retirement/superannuation.

2. Member Pension upon disablement while in service.

3. Spouse Pension upon death of member as pensioner.

4. Children Pension along with spouse pension.

5. Orphan Pension upon death / remarriage of spouse (up to age 25).

6. Disabled Child Pension to children/orphan (life‐long).

[43]

7. Nominee Pension to the Nominee when no family exists.

8. Dependent Parent Pension when no family and nominee exists.

2.10 PERFORMANCE OF THE EMPLOYEES'

PENSION SCHEME 1995 PERFORMANCE OF THE

EMPLOYEES' PENSION SCHEME 1995

The Employees’ Pension Scheme, 1995 was framed with the objective of

providing regular old age income under the following assumptions:

1. The Pension Fund shall have adequate interest earnings so as to ensure

reasonable pension and other benefits to the members and their

families.

2. Members would continue with their membership and continue to

contribute to the scheme so as to avail most of the retirement/ superan

nuation benefits in the form of regular income rather than availing pre

mature benefits.

3. The statutory wage limit would only be increased with prior

actuarial analysis since it was a defined benefit Scheme and the wage

limit may increase the deficit in the EPS, 95. Similarly, any change

in the benefits provided under the Scheme would only be made after

making a proper actuarial analysis.Under para‐32 of Employees’ Pensi

on Scheme,1995 following the annual actuarial valuation, so as to keep

the scheme viable.

However, the actual experience with the Scheme has been as

follows:

1. The interest rate regime has fallen consistently from around 12%

pa in 1996 to less than 8% pa in 2006. Interest Earnings Analysis as per

[44]

the data in Valuation Reports is shown in Appendix5. This has had

an adverse impact on the earnings and consequently the monthly

pension amounts. This has also resulted in high actuarial deficits

basically because of the widespread of benefits.

2. Members do not continue for long in the Scheme and like to withdraw

their money whenever they are changing jobs before putting in ten

years of service. There has been an unusually high incidence of early

withdrawal payments. Similarly, the number of early pension optees is

far more than those opting for superannuation pension. Analysis of Out

going Payments is shown in Appendix6. From the same it is seen

that the premature withdrawals are as high as 34.4% of the payments.

3. The statutory wage limit was increased in 2001 from Rs 5000 to Rs 65

00 without being backed up by an actuarial advice. This injected an in

stant actuarial deficit to the tune of Rs 10,000 crore in the EPS’95

Fund as no provision was made to obtain the contributions on the

enhanced salary for the earlier period of service already put in on

which the benefits would eventually be paid at the time of superannuati

on. This can be explained with the help of an illustration as follows:

Illustration: Suppose a member, drawing a basic wage of Rs 6500 per

month in 1996, was contributing to Pension Fund @ Rs 5000 per month due to

the statutory wage ceiling of Rs 5000 at that time.

In 2001, the wage ceiling was increased to Rs 6500 and the member

starts contributing to Pension Fund @ Rs 6500 per month. At the time

of superannuation, he becomes entitled for pension with pensionable salary

of Rs 6500 and the resultant calculations thereto. Thus, whereas he contributed

@ Rs 5000 for a certain period of pensionable service, he became entitled forp

ension at a pensionable salary of Rs 6500. This anomaly needs to be accounted

for by breaking the benefit in two parts.

one for the period when the pensionable salary was Rs 5000 and the other whe

n it was Rs 6500 and the same should have been factored in.

[45]

Salary rise is normal in the career life span of an individual and the same is als

o taken into account during actuarial calculations. However, before effecting

an amendment in wage ceiling, it should be backed by infusion of additional

funds by way of additional contributions or modification in benefits calculatio

nas may be actuarially found feasible

4 The provision of voluntary contribution beyond the statutory wage

ceiling with the mutual consent of the employee and the employer was

introduced in 1996 without compensating for Government contribution which

remains fixed at 1.16% upto wage ceiling only. This is also a cause of

increasing deficit whenever such option is granted/exercised. This has also intr

oduced an about marginal element of cross‐subsidization from lower income

to higher income group.

5 Several amendments liberalising the benefits under EPS'95 were made

after the launch of the Scheme in 1995. Dependent Parent Pension was

introduced in March’1999; Pension to disabled children/orphans for life

was introduced in March’1999; The rates of minimum pension in respect

of widow / children/ orphan pension were increased in January’2000.

6 Each Annual Valuation Report had called for immediate corrective

steps such as:

1. Improvement in quantity and quality of data

2. Increase in contributions to match the decreasing rate of returns

3. Disincentive for early withdrawal

4. Alteration in the scale of several benefits

However, necessary steps were not initiated to implement the above

modifications. Some measures to check the large deficit were taken

at a late stage in the year 2008.

[46]

CHAPTER: -3

3.1 OBJECTIVES OF Maharaja Whiteline Industries

Limited (MWIL)

1) 3.1.1Business

To re-evaluate the corporate plan for higher growth & dividend

objective

To further increase its contribution in the company’s value of

production & profitability.

To maintain 10% annual growth in the turnover of the company

excluding the bought out items.

To undertake financial restructuring of the company to be more

competitive.

To endeavor to achieve reasonable return on investments.

2) 3.1.2 Productivity

Higher capacity utilization & generation of internal recourses

To realize greater operational efficiency improved productivity.

To ensure optimum utilization of all the facilities in manufacturing

division.

To ensure optimum utilization of all the facilities

[47]

Created for manufacture of railway signaling

System

3) 3.1.3 Customer

o To achieve & maintain high degree of customer satisfaction

with timely delivery.

o To provide better after sale services.

4) 3.1.4 Employees

To achieve level of safety standards.

To achieve continuous increase in value addition per employee.

3.2 OBJECTIVES OF THE STUDY

1. To study the pattern of membership in Provident Fund and Pension

Scheme in MWIL.

2. To study the contribution made by employer as well as employee

towards Provident Fund and Pension in MWIL.

3. To find out the benefits of P.F. and Pension derived by employees in

MWIL.

4. To find out the weaknesses in implementation of Pension Scheme in

MWIL.

[48]

Chapter: -4

RESEARCH METHODOLOGY

4.1 DEFINITION OF RESEARCH

Research in common parlance refers to a search for knowledge. It is a

scientific and systematic search for pertinent information on a specific topic.

“Research may be defined as a systematized effort to gain new knowledge.”

-Redman and Moray

4.2 PROCESS OF RESEARCH

Problem Identification and definition

Research Design

(a) Type of Research

(b) Unit Identification

(c) Sampling

[49]

Data collection

Data Analysis and representation

Interpretation of the result

Suggestions

4.3 TYPES OF RESEARCH

There are various types of research like: -

1) Descriptive v/s analytical

2) Applied v/s fundamental

3) Quantitative v/s qualitative

4) Conceptual v/s empirical

TYPE OF STUDY:

My study is an Empirical Research. Empirical research is practical or data

based research. Whatever I have done relies on the experience and

observations. Lastly the conclusions with which I have come up are capable

of being verified

4.4 RESEARCH DESIGN

“A research design is simply the framework or plan for a study that is used as

a guide in collecting and analyzing the data. It is blueprint that is followed in

completing a study.”

[50]

4.5 DATA COLLECTION

The task of data collection beings after a research problem has been defined

and research design/ plan chalked out. While deciding about the method of

data collection to be used for study, the researcher should keep in mind two

types of data.

There are two types of data

Primary data

Secondary data

4.6 COLLECTION OF PRIMARY DATA

It is collected afresh and for the first time, thus happen to be original in

character. Primary data is collection of data through questionnaire,

interview method, observation method, etc.

In my research I opted for questionnaire method. Questionnaire was

filled by employees of MWIL.

4.7 WAY OF PRIMARY DATA COLLECTION:

1. Observation Method

2. Interview method

3. Questionnaires

4. Schedules etc.

4.8 COLLECTION OF SECONDARY DATA

These are those data which have been already collected by someone else

and which have already been passed through the statistical process. When the

researcher utilizes secondary data, than he has to look into various sources

[51]

from where they can obtain them. Secondary data may either be published

data or unpublished data.

Published data are available –

1. Newspapers and Journals

2. Market Reports

3. Government Publications

4. Book Magazines

5. International Publications etc.

Un Published data are available –

Dairies, letters, unpublished biographies and autobiographies and also may be

available with scholars and research workers, trade associations, labour bureaus and

other public/ private individuals and organizations.

Secondary data was collected through annual reports and the brochures of

MWIL.

SAMPLE SIZE

A employees-based survey was conducted in which 30 people selected as

sample to fill the questionnaire.

SAMPLING TECHNIQUE

Because it was not possible to consider each and every person work in MWIL

so probability sampling and random sampling was taken.

4.9 LIMITATIONS OF THE STUDY:-

[52]

1. Difficulty in data collection: - A great of problem is faced during

data collection (secondary) due to the improper record keeping by the

employees of MWIL.

2. Lack of co-operation of employees: - General co-operation of the

employee is to be achieved in the organization is one of the major limitations

of the project.

3. Time constraint: - The most glaring of any constraints is the short time

from within which a certain objective has to be achieved.

4. Restricted study: -

Research is based on the study of data restricted from year 2008 to 2012.

[53]

Chapter: -5

DATA ANALYSIS AND INTERPRETATION:

Note: sample data presented below are collected from the 30

employees of Maharaja Whiteline .

Based on which the data are analyzed:

Contribution towards Employee Provident fund and

pension scheme.

Benefits of Employee Provident fund and Pension scheme.

1. What are the major products made by MWIL? Products No. of employees Percentage Electronics 6 7%Home care 4 3%Appliances 19 90%Others 1 0%

[54]

Interpretation: Out of total surveyed 30 employees. 90% employees said that the

company made appliances, 7% said that company made electronics, 3%

said that home care and 0 % said that company made other products.

2. How many years of minimum service are required to become eligible to be a member pension?

Year No. of employees Percentage %10 20 67%5 1 3%8 2 7%12 7 23%

Interpretation: Out of total surveyed 30 employees. Out of total surveyed 30

employees. 67% employees said that the minimum service are required

10 years, 3% said that 5 years required,7% said that 8 years required and

23% said that 12 years service are required to become eligible to be a

member of pension.

[55]

Recommendation

Suppose a member of Employees’ Pension Scheme. He/She has left

employment at 48 yrs. of age and 8 yrs. of service. He/She can take either

withdrawal benefit or can take scheme certificate so that the 8 years

service can be added to any future service that he / she may put in, in any

other covered establishment. By virtue of being a holder of a scheme

certificate, if the member dies before 58 years widow / widower and

children shall be entitled for pension.

3. You define employee provident fund as

Interpretation:

Out of total surveyed 30 employees. 100% people said that employee

provident fund is saving.

[56]

4. Do you think that Provident Fund provides some relief / benefits to the employee after their retirement or to his dependants in case of his death?

Interpretation:

Out of total surveyed 30 employees. 93% people said that YES provident

fund provides relief after their retirement or to his dependants in case of his

death.

7% people said that provident fund does not provide any relief to employee

after their retirement or dependants in case of his death.

5. What is the minimum rate of Provident Fund contribution

by the member?

Contribution No. of employees Percentage

10% Basic Pay + D.A 9 23%

12% Basic Pay + D.A 20 67%



[57]

Interpretation: Out of total surveyed 30 employees.

23% employees said that the minimum rate of provident fund contribution

made by the member is 10% Basic pay + dearness Allowance







6. What is the voluntary rate of provident fund contribution by

the member?

Contribution No. of employees percentage

Any rate he desire 11 39%

50% 5 18%

12% 12 43%

100% 0 0%

[58]

Interpretation: Out of total surveyed 30 employees. 39% employees said

that the voluntary rate of contribution is any rate the employee desire but

more than minimum.

18% employees said that 50% of basic pay.

43% said that 12% of basic pay.

7. Is it possible to take benefits of family pension scheme

without completing 10 years of contributory service?


[59]

90% people said that it is not possible to take benefits of family pension

scheme without completing 10 years of contributory service.

10% people said that it is possible to take benefits of family pension scheme

without completing 10 years of contributory service.

8. Is employee the only beneficiary of pension fund?

Interpretation: Out of total surveyed 30 employees. 57% employees said

that yes employee the only beneficiary of pension fund.

43% employees said that employee is not the only person who takes benefits

of pension fund.

Recommendation

Benefit will be paid to him/her and in his/her absence to his/her family. If

he/she does not have a family, benefits will be paid to his/her nominee,

who will receive the benefit in his/her absence.If member has not

nominated anyone. The pension / ROC will be paid to the dependent

parents.

9. Can member change his/her nomination?

[60]


63% employees said that Yes employee can change nomination.

37% employees said No employee cannot change nomination.

Recommendation

He/ She can change his/her nomination whenever he/she decides within the

framework of rules for such nomination. In other words if he/she has a

family, nomination should be in favor of a member(s) of the family. If

he/she has no family he/she can nominate anyone he/she wishes.

10.After which age a employee can take benefits of pension

scheme?

[61]


70% employees said that after age of 58 employee can take benefits of

pension scheme

30% employees said that after age of 60 employee can take benefits of

pension scheme

11. If a member finds difficult to get the form attested by the employer, from where he/she can get the attestation?

Options No. of Emp Percentage

Manager of a bank. 0

Member of the Central Board of Trustees./ committee/ Regional Committee (Employees’ Provident Fund Organization).

13

Magistrate/ Post/ Sub Post

Master/ President of

Village Panchayat/ Notary

10

[62]

Public

Any of the above. 7

Interpretation:

Out of total surveyed 30 employees.

44% employees said from member of the central board of trustees/

committee/regional committee (employees’ provident fund organization) can

get the attestation.

23% employees said from Any of above.

33% employees said that from Magistrate/ Post/ Sub Post Master/

President of Village Panchayat/ Notary Public.

Recommendation

It is the duty of the employer under the Act & Scheme to help Employees’

Provident Fund organization to settle the Provident Fund dues of his

employees. He has to complete the prescribed application within 5 days

of receipt [para72(5)] forms & hand over it to the member when he leaves

the service. When a member finds difficult to get the form attested by the

employer, he can get the attestation of any of the following officer & send

to the Provident Fund office

[63]

1. Manager of a bank.

2. By any gazetted officer.

3. Member of the Central Board of Trustees./ committee/

Regional Committee (Employees’ Provident Fund

Organization).

4. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/

Notary Public.

5.1 INVESTMENTS OF THE AMOUNT OF PROVIDENT

FUND

5.2 EMPLOYEE’S PENSION SCHEME IN MWIL

Although Provident Fund is an effective old age and survivorship benefit, but

in a case where death of employee is at early age, say after putting in a couple

of years of decade service, the accumulation in the provident fund at the

[64]

credit of such employee would be too meager and the family would be

deriving little benefit from the fund.

The Government gave the matter a serious thinking to find out the ways and

means by which the future interests of a family in distress can be safeguarded

after the earning member makes an exit before he reaches the age of

retirement.

Thus in order to make an adequate provision for the future of an industrial

worker after he retires or for his dependants in case of his premature death, a

scheme was under active consideration of the government for many years.

During the course of study of the issue it was found that some industrially

advanced countries already had similar schemes to look after the destitute

families in absence of the earning member

A scheme to provide long-term financial security and protection to the

dependants of the workers in the event of their untimely death was required

in the country. By passing legislation in the shape of Employee’s Pension

Scheme Government has taken a praise-worthy step, which will be a

landmark in the history of industrial workers welfare.

An Employee’s Pension Fund has been created for this purpose by diverting a

portion of the employer’s contributions to the provident fund.

For example: -

Suppose the salary of an employee is Rs.10000 per month.

Employer’s contribution @ 12% of Rs.10000 i.e. Rs.1200

Pension @ 8.33% is charged on maximum limit of rs.6500 i.e. Rs.541.

Rs.541 are transferred to employee’s pension fund and remaining 659 (1200-

541) remains in the employee’s provident fund account on which interest @

8.5% per month is payable to employees.

[65]

5.3 RULES GOVERNING PENSION IN MWIL

In the other Organizations it is necessary for an employee to remain

in service for 10-15 years in order to become eligible to receive Pension but

in MWIL. no such condition applies. As soon as an employee (casual,

contract or regular) becomes member of Employees Provident Fund he also

becomes member of employees Pension Fund and is entitled to receive

Pension even if die after rendering 1 month service.

An employee becomes entitld to receive pension only after rendering

10 years service or on attaining 58 years age, whichever is earlier.

If an employee dies even after rendering 1 month service is entitled

to receive pension. Here no clause of rendering 10 years service and attaining

58 years age applies.

If an employee dies after rendering 10 years service without drawing

any withdrawal benefit, he is entitled to receive pension with the consent of

employer.

Note: -If an employee leave job without drawing any withdrawal benefit, he

is not entitled to receive pension.

Maximum pension: -

Pension limit is decided on the basis of 2 criteria’s:-

On attaining he age of 58 years -- Rs.1400

In case of death of an employee – Rs.2021

[66]

5.4 APPOINTMENT OF NOMINEE IN CASE OF DEATH

In case of death, the Nominee Appointed by the deceased employee

becomes entitled to receive pension.

If an employee is unmarried then parents are appointed as nominee.

If an employee is married then his wife and 2 children upto the age of 25

years become entitled to receive pension.

In case of death

½ of the pension to remaining

2 children (upto 25 years age) ½ of the pension

5.5 DATA ANALYSIS AND INTERPRETATION

(a) 5.5.1 Membership of employee’s provident fund in MWIL.

Year Members

2008-2009 573

2009-20010 553

2010-2011 292

2011-2012 291

[67]

Interpretation: -Pattern of decline in membership in comparison

to previous year is as follows: -

2008-2009--- 3.4%

2009-2010--- 47.22%

2010-2011--- .34%

There has been continuous decline in membership. But in the year2009-2010

there has been major decline due to increased frequency of

VRS,Resignations,Retirement & Death

[68]

b) 5.5.2 MEMBERSHIP OF EMPLOYEES PENSION SCHEME

IN MWIL.

Year Members

2008-2009 282

2009-2010 265

2010-2011 275

2011-2012 274

Interpretation: -Membership of employees as compared to previous year:

declined in 2009-2010 by 8.02%

Slightly increased in 2010-2011 by 3.65%

Negligibly declined in 2011-2012 by .58%.

[69]

c) 5.5.3 CONTRIBUTION TO EMPLOYEES PROVIDENT FUND

Year Employee’s

Contribution

Employer’s

contribution

Total

2008-2009 3695569 1740215 5435784

2009-2010 3538038 1563839 5101877

2010-2011 3951997 1624361 5576359

2011-2012 4399927 1763639 6163567

Interpretation:-Although Membership in Provident Fund has declined

during previous years yet contribution towards Provident Fund has increased

from year 2010 onwards due to the increase in Provident Fund Contribution

Rate.

[70]

d) 5.5.4 PENSION SCHEME IN MWIL.

Interpretation:-

In the year 2008-2009 amount of Pensions is more because no. of employees

is more.

Then there has been continuous decline in pension amount as compared to

previous year in the following way: -

In year 2009-2010 --- by 7.72%

In year 2010-2011 --- by .027%

[71]

Year Amount in pension

scheme

2008-2009 152440

2009-2010 140667

2010-2011 140628

2011-2012 141381

In year 2011-2012 --- by .54% (increase)

Up to year 2010-2011 8.33% of 500 was transferred to Pension

Fund of the Employees.

From year 2011-2012 onwards 8.33% of 650 is transferred to

Pension Fund of Employees.

Therefore, there has been increase in Pension Contribution of Employees as

compared to previous year due to the increase in amount from 500 to 650.

Chapter: -6

[72]

FINDINGS AND CONCLUSION

6.1 FINIDINGS

1. The Membership of Employees in Provident Fund in MWIL. has

continuously declined due to the Voluntary Retirement Scheme (VRS.)

adopted by employees of MWIL

2. The Membership in Employees Pension Scheme has declined in the recent

years in comparison to year 2008-2009 due to the V.R.S. adopted by

employees of MWIL.

3. The contribution of members have reduced in the year 2009-2010 as

compared to year 2008-2009 but increased in years viz. 2010-2011 and

2011-2012 inspite of the reduction in membership due to the increased %

of contribution by members.

4. Amount in Pension Scheme has shown a decreasing trend due to the

reduction in number of employees due to VRS

5. From the survey it was found that Employees of the MWIL are not

fully aware about the Employees’ provident fund and Employees’

Pension Scheme.

6. From the survey it was found that majority of employees’ knows

provident fund as saving. From the survey it was found that Provident

Fund provides relief / benefits to the employee after their retirement or

to his dependants in case of his death.

7. As per the Act, the member has to contribute at the rate of 10% or 12%

[73]

of his basic pay, D.A. & retaining allowance if any. In case the member

wants to contribute more than this, voluntarily he can do so at any rate

he desires. i.e. up to 100% of basic and D.A. But the employer is not

bound to contribute at the enhanced rate.

6.2 CONCLUSION

1. Employees Provident Fund and Pension Scheme are much more helpful

for the industrial workers at the time when his source of income is

stopped, simultaneously the scheme provides monetary benefits to the

nominee/heirs of an employee in the event of his death while in service.

2. Legal Formalities are involved at the time of joining of membership in

Provident Fund And Pension Scheme with regard to the appointment of

nominee who would be entitled to receive the amount of pension at the

time of the death of the earning member of the family.

3. After independence, the Government has introduced a number of schemes

in this regard but proper implementation is not done due to lack of funds.

[74]

Chapter-7

RECOMMENDATIONS

7.1 RECOMMENDATIONS

The Employees Provident Fund And Pension Scheme is the Schemes for

the benefit of the industrial workers, under social Security Measures. It is

expected that under these schemes the industrial workers and the dependant

family members should sufficiently benefited at the time of financial

hardship. But because of certain drawbacks in the implementation of the Act

the following measures are suggested to the Government for the improvement

in the working of the scheme: -

1. Looking at the inflationary pressure, the Employer’s Contribution to

the Provident Fund should be increased.

2. The Employees/Workers should be made aware of the nomination

forms to be filled at the time joining the organization.

3. Super-Annuation Scheme should also be made compulsory for all

industrial workers to supplement the monetary benefits at the time of

retirement of an employee.

4. Old Age Pension Scheme may be introduced so that the employees

may not face any financial hardship, at the time when his source of income is

stopped.

[75]

5. The difference in the opinion prevailing in the mind of Central

Government regarding interest paid to the employees in Provident Fund

should be resolved.

BIBLIOGRAPHY

[76]

C.R. Kothari

(Research Methodology, Methods And Techniques)

K.D.Shrivastava

(Provident Fund And Miscellaneous Act, 1952)

Report of the empert committee on employees pension scheme 1995

The employees’ provident fund act 1958 No. 15(T.B

ILANGARATNE, minister of labour housing and social services.)

Framework document for employee provident fund organization

(2011-2012)

Secondary Data

(Provided By Company)

Websites:

www.maharajawhiteline.com

www.google.com

www.asklaila.com

www.bmradviser.com

www.taxworry.com

Questionnaire

[77]

http://www.asklaila.com/

http://www.maharajawhiteline.com/

Name of the employee : …………………………

Name of the organization : …………………………

Address of the employee : …………………………

Designation : …………………………

Gender

MALE FEMALE

Age

< 18 26-35 46-60

18-25 36-45 61 & ABOVE

12. What are the major products made by MWIL?

Electronics Appliances Home care others 13. How many years of minimum service are required to

become eligible to be a member pension?

10 8 5 12

14. You define employee provident fund as

Saving Expenditure

15. Do you think that Provident Fund provides some relief / benefits to the employee after their retirement or to his dependants in case of his death?

Yes No

16. What is the minimum rate of Provident Fund contribution

by the member?





[78]

17. What is the voluntary rate of provident fund contribution by

the member?

Any rate he desires 100%

50% Any other, please specify ………..

90%

18. Is it possible to take benefits of family pension scheme

without completing 10 years of contributory service?

Yes No

19. Is employee the only beneficiary of pension fund?

Yes No

20. Can member change his/her nomination?

Yes No

21. After which age a employee can take benefits of pension

scheme?

48 60

50 58

22. If a member finds difficult to get the form attested by the employer, from where he/she can get the attestation?

a. Manager of a bank.b. Member of the Central Board of Trustees./ committee/

Regional Committee (Employees’ Provident Fund Organization).

c. Magistrate/ Post/ Sub Post Master/ President of

Village Panchayat/ Notary Public

d. Any of the above.

----------

[79]

[80]

[81]

[82]

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