industrial management academy by mr. a. n. roy, formerly additional central provident fund...
TRANSCRIPT
INDUSTRIAL MANAGEMENT ACADEMY
by Mr. A. N. Roy,Formerly Additional Central Provident Fund Commissioner,
Govt. of India
PRESENTATION ON
EMPLOYEES’ PROVIDENT FUND ACT AND SCHEME EMPLOYEES’ PENSION SCHEME EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEME
SLIDE NO. PARTICULARS
3–62
63–147
148–152
153–166
167–175
EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT, 1952 AND EMPLOYEES’ PROVIDENT FUND SCHEME, 1952.
EMPLOYEES’ PENSION SCHEME, 1995 – A NEW ERA IN SOCIAL SECURITY.
THE EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME, 1976.
SOCIAL SECURITY – GLOBAL PERSPECTIVE.
SOCIAL SECURITY – INDIAN CONTEXT.
INDEX
EMPLOYEES’ PROVIDENTFUNDS & MISCELLANEOUS
PROVISIONS ACT, 1952AND
EMPLOYEES’ PROVIDENTFUND SCHEME, 1952
INDEX
EMPLOYEES’ PROVIDENT FUND ORGANIZATION, INDIA
A Statutory Organization under the administrative Control of Ministry of Labour, Govt. of India.
Performing the task of enforcing the provisions of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 and the Scheme framed thereunder.
AND
Providing service delivery to the members of the Fund and their family members in accordance with the Scheme.
INDEX
EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
Schemes Framed and Implemented
Employees’Provident FundsScheme, 1952
Employees’PensionScheme, 1995*
Employees’ Deposit Linked Insurance Scheme, 1976
INDEX
*Formerly Employees’ Family Pension Scheme, 1971
THE EMPLOYEES’ PROVIDENT FUNDS ANDMISCELLANEOUS PROVISIONS ACT, 1952
Statement of Objects and Reasons
The question of making some provision for the future of the industrial worker after he retires or for his dependents in case of his early death, has been under consideration for some years. The ideal way would have been provisions through old age and survivors’ pensions as has been done in the industrially advanced countries. But in the prevailing conditions in India, the institution of a pension scheme cannot be visualized in the near future. Another alternative may be for provision of gratuities after a prescribed period of service. The main defect of a gratuity, however, is that amount paid to a worker or his dependents would be small, as the worker would not himself be making any contribution to the fund. Taking into account the various difficulties, financial and administrative, the most appropriate course appears to be the institution compulsorily of contributory provident funds in which both the worker and the employer would contribute. Apart from other advantages, there is the obvious one of cultivating among the workers a spirit of saving something regularly. The institution of a provident fund of this type would also encourage the stabilization of a steady labour force in industrial centres.
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS ACT, 1952
Section 5 of the Act, empowers Central Government to frame & notify Employees’ Provident Fund Scheme, for the benefit of employees working in establishments to which the act applies.
As per Section 5(1A) the fund shall vest in and be administered by, the Central Board of Trustees constituted under Section 5A of the Act.
The Central Board of Trustees administers the fund through its operational setup viz., The Employees’ Provident Fund Organization.
INDEX
OPERATIONAL STRUCTURE & SOURCE
The Employees’ Provident Fund Act, 1952 (Since renamed as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952) enacted by the Central Government for institution of Provident Fund on contributory basis, for the benefit of employees working in establishments in Industrial & Commercial sectors.
Over the period, the contributory provident fund system has been enlarged gradually combining pension and insurance benefits in an integrated manner.
Central Government notified –
1. The Employees’ Provident Fund Scheme, in 1952;2. The Employees’ Family Pension Scheme, in 1971 followed by the Employees’ Pension Scheme in 1995; and3. The Employees’ Deposit Linked Insurance Scheme in 1976.
[Sec. 5, 6A & 6C]
Central Board of Trustees, a tripartite statutory body constituted to administer the funds. [Sec. 5(1A), 6A(4) & 6C(5)]
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS &MISCELLANEOUS PROVISIONS ACT, 1952
Primary objectives for enactment in brief has been :-
Providing old age / post service financial support / income security to the member / dependent survivors.
Assigning employers liability to make contribution in raising the fund for the benefit of employees and their dependent survivors on compulsory basis.
Promoting thrift habit amongst employees and enlarging domestic savings base.
Providing risk free and immunized deposit accretion to the member free from attachment etc.
Augmenting resource availability position for national economic development.
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS& MISCELLANEOUS PROVISION ACT, 1952
GENERAL / INTRODUCTORY:
A major social security legislation in India for benefit of the workers in general employed in Industrial/Commercial sectors.
Targeted for extending post service/survivors support to the member/family members.
Provides for contributory Provident Fund on compulsory basis with extended coverage of pensionary package and Deposit Linked Insurance in an integrated manner.
Structured as self-applying law – implementation through employers of the establishment on self-complying basis.
It extends to whole of India except the State of Jammu and Kashmir.
Presently three Schemes are in operation – viz.
(i) Employees’ Provident Fund Scheme, 1952.(ii) Employees’ Pension Scheme, 1995
(formerly Employees’ Family Pension Scheme, 1971).(iii) Employees’ Deposit Linked Insurance Scheme, 1976.
INDEX
I. Applicability
Applies to establishments belonging to notified category employing 20 or more persons – (5 employees in case of Cinema/Theatre establishment and 50 employees in case of Co-operative Society working without power).
No infancy protection from September, 1997.
Provision exist for coverage on voluntary basis for non-applicable category.
Central Government empowered to exempt any class of establishment from the operation of the Act for specified period.
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THE EMPLOYEES’ PROVIDENT FUND & MISC. PROVISION ACT, 1952
The Act shall not apply to :-
a) Any establishment registered under the “Co-operative Societies Act, 1912 or any other law in force relating to cooperative societies, employing less than 50 (Fifty) Persons and working without the aid of power, or
b) Any establishment belonging to or under the control of the Central or State Government and whose employees are entitled to the benefits of CPF or old age pension in accordance with the scheme / rule notified by the central / state government; and
c) Any statutory body whose employees are entitled to the benefits of CPF / Old age pension in accordance with the scheme / rule framed under that act governing such benefits.
[Repeal of Sec. 16(1)(d) of the EPF & MP Act, 1952, vide Act 10 of 1998 shall have prospective form 22.9.1997 – infancy protection accrued to establishments prior to amendment would remain available.]
[SL. Srinivash Jute Twine Mills (P) Ltd. vs. UOI & Ors. (Supreme Court)]C.A. No.–6777/2003 with C.A. 6778-80/2003. Judgement dated 15.2.2006
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THE EMPLOYEES’ PROVIDENT FUNDS& MISCELLANEOUS PROVISION ACT, 1952
Applicability:[Sec. 1(3) of the Act]
Subject to the provisions contained in Sec. 16, the act shall apply:
(a) In every establishment which is a factory engaged in any industry specified in schedule I in which twenty or more persons are employed, and
(b) To any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the official Gazette, specify in this behalf.
It is the notification extending the provisions of the scheme to an establishment par se that attracts his liability and not the service of notice on the employer that has this effect; it is an absolute and unqualified liability not depending on the vigilance of the department or on the will of the employer to make the workmen members of the scheme.
Nazeena Trades (P) Ltd.vs.
The Regional P.F. Commissioner[1966 (I) LLJ 334]
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THE EMPLOYEES’ PROVIDENT FUND & MISC. PROVISION ACT, 1952
1. ESTABLISHMENT :
The term “establishment” has not been defined in the Act, and consequently, it shall have to be given its ordinary meaning with reference to the definition of the term “factory”.
[E. Delhi Cloth & General Mills Co. Ltd.vs.
Regional P.F. Commissioner, U.P.[1961 (2) LLJ 444]
Unlike others Acts where either the expression “establishment” or other words analogous there to are used in conjunction with such expressions as “in the course of business or trade”, in the Act, the word “establishment” is not qualified in any way. It only means an organized which employees certain number of persons and nothing more”.
[Cosmopolitan Club, Madrasvs.
Regional P.F. Commissioner, Madras[1967 (1) LLJ 797]
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II. Membership
Every employee to be enrolled to the membership of the fund from day one (eligibility requirement deleted from November 1990 onwards).
Membership compulsory for all except excluded employees.
Membership for all the schemes necessary – either of statutory scheme or exempted scheme.
Assigned responsibility upon employer of the establishment for Contractors employees.
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THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
=======================================
===
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
1. Defines the term “International Worker” by inserting Para 2(ff).
(a) An Indian employee having worked or going to work in a foreign Country with which India has entered into a Social Security Agreement And being eligible to avail benefits under a Social Security Programme of that country for eligibility gained or going to gain
(b)A foreign national holding other than an Indian Passport working for an establishment in India.
2. Substitutes the parameter components of the term “Excluded Employee” In relation to International Workers – Para 2 (f) as under :-An International Worker who is contributing to a Social Security Programme of his / her country of origin, either as a citizen or resident, With whom India has entered into a Social Security Agreement on Reciprocity basis and enjoying the status of detached worker for the Period and terms as specified in such agreement. -commonly understood usual clause of ‘Prescribed Pay Ceiling’ not Provided.
3. Provides for revised membership enrollment related parameters, compulsory Membership for all International workers other than an ‘Excluded Employee,’ without voluntary enrollment on joint request
4. Pay ceiling limit for contribution payment liability not provided for. Contribution payable on total Salary
5. Prescribes separate return submission requirement for International workers.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952 ( Special provisions for specific class of
employees ) ==========================================
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
V. IMPORTANT TERMINOLOGY IN BRIEF
1. ‘Employer’ [Sec. 2(e) of the Act)
A. For Factory Establishmenti) Owner or occupier or their agent andii) Manager, if any
B. For Other Establishmenti) Person holding ultimate control; andii) Manager/Managing Director/Managing Agent etc.
2. ‘Employee’ [Sec. 2(f) of the Act]
Any person employed for wages in or in connection with the work of an establishment including persons employed, if any.
i) by or through contractor; andii) an apprentice engaged otherwise than under the Apprentice Act,
1961 or standing order of the establishment.
3. ‘Excluded Employee’ [Para 2(f) of the scheme]
i) Former member of the EPF taken final settlement of PF under para 69 of the Scheme.ii) An employee whose pay at initial entitlement of
membership exceeds prescribed pay ceiling.iii) An apprentice.
INDEX
A partner is not an “employee”.Regl. Director, ESIC vs. Ramanujam Match Factory [AIR-1985-SC-278]Managing Director/Director with specified function for specified annual remuneration is an “employee”.ESIC vs. Apex Eng. (P) Ltd. [1988-1-SCC-86]
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
==========================================
“Excluded Employee” definition as provided in Para 2(f) of the EPF Scheme,’52 read with
Varying parameters as provided for Special category employees in Para 80 – 83.ibid.
====================================================
(A) ‘Excluded Employee’ means :-
(i) An employee having been a member of the EPF, withdraw the full accumulation from The Fund on exit after attaining the age of 55years;
(ii) An employee (other than an employee in News Paper establishment) whose Pay at the time of membership enrollment entitlement exceeds prescribed pay ceiling of Rs.6500/- per month (Rs.25000/- per month for disabled employees and Rs.1600/-per Month for cine workers ) ;
(iii)An Apprentice. (other than News Paper & Cine establishments employees
(B) “Excluded Employee” for International Workers shall mean :-
An International worker who is contributing to a social security programme of his/her Country of origin, either as a citizen or resident, with whom India has entered into a Social Security Agreement on reciprocity basis and enjoying the status of detached Worker for the period and terms as specified in such agreement.
THE EMPLOYEES’ PROVIDENT FUND & MISC. PROVISION ACT, 1952
“Employee” [Sec. 2(c)]. Casual employment if covered
…..The word “employment” must, therefore, be construed as employment in the regular course of business of the establishment; such employment obviously would not include employment of a few persons for a short period on account of some passing necessity or some temporary emergency beyond the control of the company. This must necessarily require determination of the question in each case on its own peculiar facts.
[The Regional P.F. Commissioner, Andhra Pradesh vs. T. S. Hariharan,{1971(1) LLJ.416: 1971(22) FLR 260}]
“Where an establishment employs temporary employees as a part of the regular feature of employment, such employees cannot be construed as Casual employees…..”
[Chatram Agarwala vs. Regional P.F. Commissioner, Orissa {1972(1) LLJ 603]
“…..The number of persons, who are ordinarily regularly employed in the establishment, should be counted for the purpose of Sec. 1(3)(a) of the Act, as distinct from merely temporary or Casual employees engaged for some abnormal or emergent purposes other than the normal work of such establishment.[Bikaner Cold Storage Co. Ltd. vs. Regional P.F. Commissioner, Rajasthan, 1981(1) LLJ
181]
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III. Contribution
Contribution is payable by Employer and Employee both equally.
Employer is required to deposit the contribution and authorized to recover employees’ share/undertake contract labourers’ liability.
Basic rate of P.F. contribution – 10%Higher rate of P.F. contribution – 12%(Basic rate applicable on 5 Industries namely Beedi, Brick, Jute, Coir & Guar-gum Industries and establishments engaging less than 20 employees/sick units).
Contribution is payable separately for all the three schemes as prescribed.
INDEX
“Contribution” – Provision [Sec. 6]
“Contribution” – The contribution which shall be paid by the employer to the Fund shall be 8[ten per cent] of the basic wages, 9[dearness allowance and retaining allowance (if any)] for the time being payable to each of the employees 1[whether employed by him directly or by or through a contractor], and the employee’s contribution shall be equal to the contribution payable by the employer in respect of him and may, 2[if any employee so desires, be an amount exceeding 8[ten per cent] of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section].
2[Provided that in its application to any establishment or class of establishments which the Central Government, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words “8[ten per cent]”, at both the places where they occur, the words 8[“12 per cent]” shall be substituted].
3[Explanation I.] – Dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
5[Explanation II.] – “Retaining allowance means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.
INDEX
“Basic Wage” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case, in accordance with the terms of contract of employment and which are paid or payable in cash, but excluding:
(1) Cash value of food concession;
(2) Dearness allowance, i.e., all cash payments on a/c of rise in cost of living, House rent allowance, overtime allowance, Bonus, Commission or any other similar allowance payable to the employee in respect of his employment or work done in such
employment and;
(3) Any presents made by the employer.
[Sec. 2(b)]
SUPREME COURT DECISIONMinimum Wage notified – whether – can be split
up ?
Minimum Wage as notified will be a package and shall constitute wage. Law does not permit it to be split up taking advantage of the components taken into consideration for its determination by the competent authority, i.e., the Government.
[Air Freight Corporation Ltd. vs. State of Karnataka & Ors.1999 – LLR – 1008 (SC)]
“Special Allowance” being paid along with salary Constitute basic wage. Exclusion shall qualify for items specified in clauses (i), (ii) & (iii) of Sec. 2(b) of the EPF & MP Act, 1952 only.
[Gujarat High Court :– Gujarat Cypronet Ltd. vs. Assistance PF Commissioner (0225-1-LLJ)](Kolkata High Court :– Vivekanand Vidya Mandir vs. RPFC(2005-LLR-392)]
INDEX
LEAVE ENCASHMENT – P.F. CONTRIBUTION PAYMENT EXEMPTION
“Encashment of Leave” will not attract Provident Fund Contribution payment liability – Definition of ‘Basic Wage’ as given u/s 2(b) of the E.P.F & M.P Act, 1952, did not intend to include such type of payments – contribution already deposited may be adjusted from future payments to be made.
Supreme Court decision in the case of : Manipal Academy of Higher Education – vs – RPFC. [2008 – LLR – 243]
Note:- Reliance placed on earlier interpretation given by the Apex Court in Bridge & Roof case- [1963(2) SCR 978]
Test Norm Followed:
(1). Where the ‘wage ‘ is universally, necessarily and ordinarily paid to all across the board, such emoluments are basic wage.
(2). Where the payment is available to be specially paid to those who avail of the opportunity is not basic wage.
(3). Any payment by way of a special incentive or work is not basic wage.
INDEX
Wage Components not attracting P.F Contribution
1. House Rent Allowance., Overtime Allowance, Bonus Commission or any other similar allowance payable to the employee in respect of his Employment or work done in such employment.(Provision u/s 2(b)(ii) of the EPF & MP Act.,’52.)
2. Any presents made by the employer.(Provision u/s 2(b)(ii) of the EPF & MP Act.,’52.)
3. Any ex-gratia / ad-hoc payment in lump sum as a result of bilateral settlement with unions.(High Court ruling given in the case Burma Shell Oil Storage & Distributing Co. Ltd.-vs-RPFC, Delhi [1981(2)LLJ86,] and EID parry (I) Ltd.-vs-RPFC. [1985-FJR-205])
4. Back wages on reinstatement awarded by Courts(Gujrat High Court ruling given in the case of Swastik Textile Engineers (P) Ltd.-vs-Virijibal Mavjibhai Rathod & another [2008-LLR-472])
5. Notice Pay / Retrenchment Compensation paid as per law u/s 33(2)(b) of I.D.Act.(Dinesh Khare-vs-Ind. Tribunal, Rajasthan, Jaipur & others.[1959 LIC.517]Ghanshyam & Co. – vs – RPFC, Delhi [ 51 FJR 357 ]RPFC –vs– Southern Alloy Foundry. [1982(1)LLJ.28 ])
INDEX
COMPLIANCE OF STATUTORY OBLIGATION BY PRINCIPAL EMPLOYER IN RESPECT OF CONTRACT LABOUR CANNOT BE A DECIDING FACTOR
FOR HOLDING THAT CONTRACT LABOUR ARE EMPLOYEES OF PRINCIPAL EMPLOYER
----------------------------------------------------------------------------------------------------------
Complying of statutory liability by the Principal Employer for payment of ESI and Provident Fund Contributions for the employees engaged through Contractor will not be a deciding factor and it cannot be held that the workers of the Contractor should become the employees of the Principal employer as the company cannot shirk from statutory obligation..
Bhartiya Kamgar Sena – vs – Udhe (I) Ltd. & Another – Bombay High Court.
[2008 – LLR – 344 ]
INDEX
• Right to membership of Provident Fund, Pension and EDLI Schemes for every employee of covered establishment drawing monthly basic pay and D.A. upto Rs. 6,500.
• 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 application in any office of EPFO and obtain acknowledgement.
• To get partial withdrawals settled within a maximum period of 30 days for specified purposes.
Bill of Rights of EmployeesINDEX
• To get final withdrawals settled within 30 days from the date of submission of claim.
• To get the accumulations transferred to employee’s new account within 30 days of change of employer and to execute nomination for receiving Provident Fund accumulations/pension.
• To register grievance and get redressal.
• To approach Office-in-charge of any office for redressal of grievance without prior appointment.
• To receive Provident Fund dues from Special Reserve Fund:
o in case of non-payment by employer of contribution deducted from wages;
o in case of non-payment by the employer of establishment closed for more than three years.
o in case of fraudulent withdrawal from employee’s account.
Contd.
• To demand from the visiting Enforcement Officer an authority issued by RPFC/APFC.
• To get Business Number allotted within three days from the date of application.
• To approach the Employees’ Provident Fund Organisation to seek clarification/guidance relating to Provident Fund matters.
• To be heard before imposition of any liability on account of contribution and penal damages.
• To get various forms free of cost.
• To demand improved service delivery for subscribers of establishments.
Contd.
IV. Benefit Admissibility
1) Provident Fund Scheme ’52 :
Lump sum payment of accretion with interest on retirement / leaving the job.
Partial withdrawal during job for specified purposes.
2) Deposit Linked Insurance Scheme ’76 :
Upon death while in service – additional payment in lump sum equal to average P.F. accretion subject to maximum of Rs. 60,000.
3) Employees’ Pension Scheme, 1995
Pension to member on retirement / invalidity.
Pension to Family members on member’s death.
INDEX
THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
Provisions relating to payment of contribution by the employer and recovery of members share of contribution/contribution in respect of contractors employees.
The employer shall in the first instance pay both the shares of contribution payable, i.e., the “employers” as also the “employees share” in respect of all categories of employees including the persons engaged by or through contractors.
[Para – 30(1)]
The contractor shall pay to the principal employer the contributions payable in respect of contractors
employees, both shares and also the administrative charges. [Para – 30(2)]
It shall be the responsibility of the principal employer to pay both the contribution payable by himself in respect of employees directly employed by him as also the employees engaged by or through a contractor and also the administrative charges.
[Para – 30(3)]
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Not withstanding any contract to the contrary, employers’ share not to be deducted/recovered from the members.
[Para – 31(1)]
Members contribution paid by the employer shall be recoverable by means of deduction from the wages for the relevant month/period of the member and not otherwise.
[Para – 32(1)]
Recovery of members’ contribution for past period could be permitted by the Provident Fund authorities in the event the recovery is necessitated for bonafide error as a result of (i) false declaration given in writing by the employee concerned or (ii) for an accidental mistake or clerical error.
[Proviso under Para 32(1)]
Deduction of contribution made from the wage of the employee shall be deemed to have been entrusted for the purpose of paying the contribution to the fund as prescribed.
[Para – 32(3)]
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OFFENCES UNDER THE EPF & MP ACT ANDSCHEMES THEREUNDER
The following acts on the part of any person/employer constitute offence :
(i) For the purpose of avoiding any payment to be made under the Act or Scheme by himself or of enabling any other person to avoid such payments, knowingly making or causing to be made any false statement or false representations.
(ii) Failure to pay any contribution and/or administrative charges as specified under para 38 of the EPF Scheme, para 10 of Family Pension Scheme and para 8 of EDLI Scheme/inspection charges payable under Section 17(3) and 17(3A) of the Act which he is liable to pay.
(iii) Deductions or attempt to deduct from the wages or any other remunerations of a member, the whole or any part of the employers’ contributions;
(iv) Failure or refusal to submit any return, statement or other document required by the scheme or submission of false return, statement or other document or making a false representation;
(v) Obstructing any Inspector in the discharge of his duties or failure to produce any record for inspection by such Inspector or other official;
(Section 14 of the Act and para 76 of Employees' Provident Fund Scheme, 1952)
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THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
Circumstances in which accumulations in the Fund are payable to a member by way of final settlement.
[Para – 69 of EPF Scheme, ‘52]
Accumulations in the provident fund account of a member becomes payable for final settlement under following situations:-
(i) On retirement from services after attaining the age of 55 years;
(ii) On retirement as a result of total and permanent disablement rendering incapable for work;
(iii) Immediately before migration from India for permanent settlement abroad or for taking employment abroad;
(iv) Termination of service upon mass or individual retrenchment;
(v) Termination of service under a voluntary retirement scheme; and
(vi) Termination of job and remaining unemployed for over two months or leaving the job from a covered establishment and joining an establishment not covered by P.F.
INDEX
THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
– Permissibility of advances under para 68
The Scheme provides for drawal of advance from Provident Fund accumulation while in service, under following situations :-
1. For purchase/acquiring a dwelling house/flats including site for the purpose. [Para – 68B]
2. For repayment of housing loan. [Para – 68BB]3. Upon closure of establishment and non-payment of wages. [Para
– 68H].4. For meeting medical expenditure involving
hospitalization/Surgical Operation. [Para – 68J]5. For meeting the cost of marriage or post matriculation education
of children. [Para – 68K]6. Upon damage of property as a result of natural calamity. [Para –
68L]7. Upon reduction in wage earning as a result of cut in electric
supply to the establishment. [Para – 68M]8. For purchasing support equipment for physically handicapped.
[Para – 68N]9. Before one year of retirement after attaining 54 years of age.
[Para – 68NN]
[NOTE: Form 31 is prescribed for applying for advance]
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THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
Duties of Employer’s [Para – 36 & 36A of EPF Scheme, 1952]
(i) The employer is required to enroll every employee, other than an excluded employee, to the membership of the fund and furnish its details to P.F. authorities in Form-9.
(ii) The employer is required to obtain declaration in Form-11 from every new employee joining the establishment as to his previous membership details, if any, and help arrange transfer process if required.
(iii) The employer is required to report to the P.F. authorities every month in prescribed return in Form-5 as to joining of new employees during the return period and the enrollment details to the membership of the fund.
Likewise, the employer is required to report the exit cases during the relevant period in Form-10.
(iv) The employer is also required to obtain from every employee/new entrant. Their Family/Nominee details in Form-2 and forward it to the P.F. authorities.
(v) The employer is required to remit contribution every month together with remittance details in Form 12/12A by 15th of the following month.
INDEX
The employer is required to furnish annual return in Form 3A/6A for the year ending [April-March] by 30th April every year summarizing memberwise contribution remittance details reconciling with the monthly remittances made;
The employer is required to submit to the P.F. authorities initially and as and when there is any change, particulars of ownership in Form-5A.
The employer is required to endorse the application seeking settlements / transfers in respect his employees, as and when it becomes due, and forwarded the same to the P.F. authorities for needful action.
The employer is required to submit necessary details as may be desired by the P.F. authorities and submit returns that may be prescribed.
The employer is required to maintain an inspection note book for recording observation upon inspection of the establishment by an Inspector.
The employer is required to carry out the directions, if any issued, by P.F. authorities for the purpose of carrying out the requirement of the act and the schemes framed thereunder.
The employer is required to exhibit the compliance details for general information of the members, and allow inspection of contribution card details if desired.
THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT, 1952
Exemption – Provisions
Section 17 of the Act, provides for exemption admissibility.
The term “Exemption” does not mean allowing establishment to go out of the purview of the P.F. law. But it means only relaxation from the operation of the statutory Scheme provisions in an authorized manner.
Exemption needs to be taken separately for separate Schemes.
INDEX
Exemption from EPF Scheme is admissible upon comparable benefit admissibility at par or more beneficial than Statutory Scheme – Benefits in the nature of contributory Provident Fund or combination of Provident Fund and Pension and/or Gratuity.
Exemption process provides for :-
(a) Individual exemption.(b) Class of employees exemption.(c) Exemption of the establishment as a whole.
Authority competent to grant exemption.
(a) Individual exemption–Regional PF Commissioner.(b) Class of employees – Appropriate Government.(c) Establishment as a whole – Appropriate Government.
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[(1A)] Where an exemption has been granted to an establishment under clause (a) of sub-section (1), –
(a) the provisions of sections 6, 7A, 8 and 14B shall, so far as may be, apply to the employer of the exempted establishment in addition to such other conditions as may be specified in the notification granting such exemption, and where such employer contravenes, or makes default in complying with any of the said provision or conditions shall be punishable under section 14 as if the said establishment had not been exempted under the said clause (a);
(b) the employer shall establish a Board of Trustees for the administration of the provident fund consisting of such number of members as may be specified in the Scheme;
(c) the terms and conditions of service of members of the Board of Trustees shall be such as may be specified in the Scheme;
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(d) The Board of Trustees constituted under clause (b) shall –
(i) maintain detailed accounts to show the contributions credited, withdrawals made and interest accrued in respect of each
employee;
(ii) submit such returns to the Regional Provident Fund Commissioner or any other officer as the Central Government may direct from time to time;
(iii) invest the provident fund monies in accordance with the directions issued by the Central Government from time to time;
(iv) transfer, where necessary, the provident fund account of any employee; and
(v) perform such other duties as may be specified in the Scheme.
(1B) Where the Board of Trustees established under clause (b) of sub-section (1A) contravenes, or makes default in complying with, any provisions of clause (d) of that sub-section, the Trustees of the said Board shall be deemed to have committed an offence under sub-section (2A) of section 14 and shall be punishable with the penalties provided in that sub-section.
INDEX
THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT, 1952
Exemption Provisions – Employees Pension Scheme, 1995
Sec. 17(1C) [as amended by act 25 of 1996] provides for exemption admissibility.
Para 39 of the Employees Pension Scheme 1995 prescribe detailed conditionalities.
Exemption is permissible for the “Establishment” as a whole only – No partial exemption permissible for class of employees or individual employee.
Exemption admissible upon comparable pensionary benefit availability at par or more beneficial than statutory scheme.
Appropriate Government is competent to allow exemption.
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THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT, 1952
Exemption Provision – Employees Deposit Linked Insurance Scheme, 1976
Sec. 17(2A), (2B), (3) & (3A) and para 28 of the EDLI Scheme ’76 provides for exemption admissibility and related conditionalities.
Exemption is admissible for Individual employee/Class of employees or the establishment as a whole.
Exemption permissible on life insurance coverage without members contribution with better benefit quantum admissibility.
Central Provident Fund Commissioner is competent to grant exemption.
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THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT, 1952
Provisions Relating to “Contractors Employees”
Liability enjoined with the employer of the establishment whose work is done, i.e., the principal employer.
Provisions apply uniformly with regular employees of the establishment.
Contractors unit has no locus-standi separately for the purpose of applicability [Section 2(f) & 6 of the Act].
Principal employer is empowered to recover the contribution & other charges from the contractor [Section 8A of the Act].
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Principal employer is authorized to obtain requisite details relating to engagement of contractors employees and other related information from the Contractor.
The Contractor is liable to submit such details / information to the Principal employer every month / as and when required. [Para 36B of the Scheme]
Principal employer to secure the requirement from the Contractor and ensure reporting compliance.
[Para 30 & 32 of the Scheme]
Failure/default will entail principal employers’ liability with attendant penal measures.
COMMON HINDRANCE IN THE MATTER OF COMPLIANCE FOR “CONTRACTORS EMPLOYEES”
Operational complexities arising as a result of short duration and frequent mobility of Contract employees in changing employment &
place of work.
Lack of awareness among Contract employees and seriousness on the part of employer/Trade Unions.
General aversion of the employer.
Avoiding tendency for fear of complication.
Common reservation in accepting parity/ responsibility with regular employees of the establishment.
INDEX
“Contractors Employees” Compliance under the EPF & MP Act, 1952 – Suggested course for safeguarding employers statutory liability:
(1) Obtain copy of the wage/salary payment scroll from the Contractor relating to persons engaged for contract work
and retain it on record.
(2) Verify Correctness of the employment details furnished in keeping with work assignment and deployment of workers there against.
(3) Ensure remittance of Provident Fund contributions in respect of employees engaged by or through contractors and retain supporting document.
(4) Ensure verification/identification process upon entry/exit in respect of “contractors employees”.
(5) Obtain requisite details relating to submission of returns in regard to, “contractors employees” from the contractors
concerned on month to month basis.
(6) Periodically verify correctness of direct compliance if any made by the contractor in respect of contract employees.
(7) Correlate release of security deposit with compliance clearance.
SUPREME COURT RULING ON RESPONSIBILITY OF “PRINCIPAL EMPLOYER” FOR CONTRACTORS EMPLOYEES IN REGARD TO EMPLOYEES PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952 COMPLIANCE
I. Employment classification attracting liability :-
Persons engaged by/through contractor with or without the knowledge and/or approval of the employer of the establishment; and
Persons working with the material, finance or otherwise assistance from the employer or through agent of the employer/contractor.
Work need not be carried on at employers’ place. Working elsewhere or even at the home of the worker shall attract
the liability.
It is only when the contractor engages labour for or on his own behalf and supplies the finished product to the establishment, employers liability will not arise. A genuine sale transaction could point in this direction as an independent contractor. Authority of the employer in issuing direction or right of rejection in such cases could vitiate the position.
Case reference :
1. Mangalore Ganesh Beedi Works vs. UOI [AIR 1974 (SC) 1832]2. P.M. Patel & Ors. vs. UOI & Ors. [AIR 1987 (SC) 447]
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SUPREME COURT RULING ON RESPONSIBILITY OF “PRINCIPAL EMPLOYER” FOR CONTRACTORS EMPLOYEES IN REGARD TO EMPLOYEES PROVIDENT FUNDS &
MISCELLANEOUS PROVISIONS ACT, 1952 COMPLIANCE
II. Regulatory points for consideration
To be an employee it is necessary that the relationship of master and servant exists.
For establishing master and servant relationship the authority of the employer to supervise and control the work of the employee is prime requirement.
In determining the element of supervision and control, physical presence of the worker or overseeing their
operational performance personally by the employer, nor working in the employers’ place are essential. Even
working at home of the worker suffice.
Authority of the employer or employers agent providing specification requirement of the work and right to
rejection has been recognized as adequate yardstick to meet the requirement.
Case reference :
1. Mangalore Ganesh Beedi Works vs. UOI [AIR 1974 (SC) 18322. P.M. Patel & Ors. vs. UOI & Ors. [AIR 1987 (SC) 447]
INDEX
“Contractors employees” compliance under theEPF & MP Act 1952 – Consideration for enjoining
Principal employers liability
The primary consideration for tagging “Contractors employees” liability with the principle employer could be for reasons such as:-
(i) Contract work in most cases will not be on regular basis and that the contractors normally may not have formal set up and continuity of their establishment / enterprise; and
(ii) The employer of the establishment contracting out the work is getting the work done for his benefit. Both the work element and the resource to do the same flow from the employer of the establishment and passes through the contractor. The work output is also derived by the principal employer. The principal employer, therefore, remains the source authority Compliance securing linkage from such a unit will be comparatively easier.
INDEX
I. Prevailing requirements for submission of Returns by the employers of the establishments
S. No.
UN-EXEMPTEDESTTS.
ESTABLISHMENTS EXEMPTEDFROM EPF SCHEME, 1952
(1) Form 5A (1) Form 5A – Common for both Un-exempted and exempted establishments
(2) Form 9 (2) Form 3 (PS) (8) Form 1 (IF)
(3) Form 5 (3) Form 4 (PS) (9) Form 2 (IF)
(4) Form 10 (4) Form 5 (PS) (10) Form 3 (IF)
(5) Form 3A (5) Form 7 (PS) -
(6) Form 6A (6) Form 8 (PS) -
(7) Form 12A (7) Form 6 (PS) (11) Form 4 (IF)
INDEX
II. Classification & periodicity of existing Returns andinformation aspect there against
Form No. Periodicity Purpose
FOR FURNISHING ONE TIME INITIAL INFORMATION
(1) Form 5A Initially once.
Subsequently as and when there is change.
Details of establishment and the owners/Directors etc.
(2) Form 9 Initially once. Updated monthly through information furnished in F/5 & F/10.
Details of employees entitled to become member on the date of coverage.
PERIODICAL INFORMATIVE RETURNS
(3) Form 5 Monthly New Members added during the month.
(4) Form 10 Monthly Existing members leaving during the month.
ACCOUNTING RETURNS
(5) Form 12A Monthly Contribution/Adm. Charges under the three schemes due and remitted by the establishments.
(6) Form 3A Monthly / Annual Individual subscriber’s Ledger Card – maintained by the employer – contribution entered on monthly basis – closed at the end of the year and sent to EPFO alongwith F/6A.
(7) Form 6A Annual Consolidated annual statement of contribution due and remitted in respect of all the members.
INDEX
III. Declarations required to be submitted by the membersEmployer to forward to the Employees Provident Fund
Authorities(1) Form 11 Initially on joining
service. Subsequently as and when there is change.
Declaration by the employees on taking up employment – whether already member or not.
(2) Form 2 Initially on joining service. Subsequently as and when there is change.
Nomination Form and details of family for the purpose of regulating benefit payment under the three Schemes upon death of the member.
Accumulation in the fund is payable to the member on submission of a claim in Form-19 in the manner prescribed.
Upon death of the member, the accumulation in the fund on submission of claim in Form-20, shall be payable to:-
(i) Nominee – if any valid nomination exist;(ii) Members of the family other then major sons and married daughters;(iii) Legal Successors;
NOTE:-
(a) If the amount to be paid does not exceed Rs. 10,000, the Commissioner, if satisfied about the title of the Claimant,
may authorise payment without requiring “Succession Certificate”.(b) Amount payable to a minor shall be remitted to the Guardian appointed under law or the natural guardian. Otherwise, the commissioner, if satisfied and the amount is below Rs. 20,000 may remit to proper person representing the minor.
Payment of Provident Fund(Para 70 & 72 of EPF Scheme 52)
Statutory Obligation for time bound Settlement ofPF / Pension / EDLI Claims
Accountability of Commissioner(Paras: 72(7) of EPF-52, 24(4) of EDLIS-76 & 17A of EPS-95)
Claims Complete in all respect and submitted with requisite documents shall be settled and benefit amount paid to the beneficiaries within 30 days from the date of receipt of the Claim;
Deficiencies in the Claim, if any, shall be recorded in writing and communicated to the applicant within 30 days.
Failure in settling the claim submitted duly by 30 days time limit, shall entail personal liability to the Commissioner to pay penal interest @ 12% p.a. on the benefit amount deductible from the salary of the Commissioner.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952(Special provisions for specific class of employees)
====================================================
Para – 80. Added vide S.R.O.2981 dated 4th. December,1956. -------------------------------------------------------------------------------------------------------Applicable for News paper establishments and news paper employees Relates to The Working Journalists (Conditions of Service & misc. Provisions) Act.,1955, effective from 31.12.1956.3
1. Provides substituted paragraph 2(f) varying “Excluded Employee” Parameters excludes prescribed pay ceiling clause.
2. Contains eligibility clause of 3 months continuous service, or worked For 60 days in 3 months time, or declared permanent, whichever is earlier For membership enrollment. 3. Provides News paper establishment specific membership enrollment / Retention of membership and Resolution of Disputes relating to member Ship provisions in substitution of Para 26, 26A and 26B of the original EPF Scheme,’52.- Pay ceiling limit clause for contribution payment Liability not provided for. 4. Provides for voluntary enrollment upon joint request from the employer And the employee concerned.
• Applicable for Cine Workers as defined in clause ( c ) of sec.2 of the Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981. The term Industry and the employee to be correlated / construed With the term ‘Film Production’ and ‘Cine Workers’ defined in Cine Workers & Cinema Theatre Workers (Regulation of Employment) Act,1981
1. “Excluded Employee” clause excludes ‘Apprentices’ – Pay ceiling limit At Rs.1600/-p.m continues unchanged.
2. Contains revised membership enrollment and related provisions with Voluntary membership permissibility on joint request clause.
3. Pay ceiling limit for contribution payment liability not provided for.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )====================================
=====
Para-81. Inserted G.S.R. 687 dated 24.08.1987-effective from 5th September, 1987
THE EMPLOYEES PROVIDENT FUND SCHEME,1952 (Special provisions for specific class of
employees)
==========================================
Para – 82. Special provisions for ‘Employees ‘ with disabilities .
Inserted vide G.S.R. 253(E) dated 31.3.2008 – effective from 1st.April,’08.---------------------------------------------------------------------------------------------------------1. Disabilities norm prescribed under the Persons with disabilities (Equal
opportunities, Protection of Rights and Full participation) Act,1995 and the National Trusts for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple disabilities Act, 1999 to be followed.
2. “Excluded Employees” clause provides for enhanced salary limit of Rs.25000/- per month Instead of Rs.6500/- per month provided in main scheme.
3. Provides for ‘Employers share of Contribution’ payment on salary upto Rs.25000/- p.m. By the Central Government for Three years.
4. Prescribes declaration in relation to ‘Disabilities’ and Returns for employment of persons With disabilities under Para 34 and 36 respectively.
5. Third proviso under Para 38(1) added specifying Central Governments paying Responsibility of ‘Employers Share of Contribution’ for a maximum period of
3 years only.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952
( Special provisions for specific class of employees )
=======================================
===
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
1. Defines the term “International Worker” by inserting Para 2(ff).
(a) An Indian employee having worked or going to work in a foreign Country with which India has entered into a Social Security Agreement And being eligible to avail benefits under a Social Security Programme of that country for eligibility gained or going to gain
(b)A foreign national holding other than an Indian Passport working for an establishment in India.
2. Substitutes the parameter components of the term “Excluded Employee” In relation to International Workers – Para 2 (f) as under :-An International Worker who is contributing to a Social Security Programme of his / her country of origin, either as a citizen or resident, With whom India has entered into a Social Security Agreement on Reciprocity basis and enjoying the status of detached worker for the Period and terms as specified in such agreement. -commonly understood usual clause of ‘Prescribed Pay Ceiling’ not Provided.
3. Provides for revised membership enrollment related parameters, compulsory Membership for all International workers other than an ‘Excluded Employee,’ without voluntary enrollment on joint request
4. Pay ceiling limit for contribution payment liability not provided for. Contribution payable on total Salary
5. Prescribes separate return submission requirement for International workers.
THE EMPLOYEES PROVIDENT FUND SCHEME,1952 ( Special provisions for specific class of
employees ) ==========================================
Para – 83. - Added by G.S.R 706 (E) dated 1st.October, 2008
THANK YOU
EMPLOYEES’ PENSION SCHEME, 1995
A NEW ERA IN SOCIAL SECURITY
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
Effective from 16.11.95, a Pension Scheme has been introduced for the members by partial diversion of their future Provident Fund contributions.
The Scheme is named as Employees’ Pension Scheme, 1995.
The Employees’ Pension Scheme, 1995 replaces the Employees’ Family
Pension Scheme, 1971.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
The Scheme is applicable to all factories and other establishments to
which the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 applies.
The Scheme is meant for members of the Provident Funds subscribing to Employees’ Provident Fund Scheme, 1952 or any scheme exempted thereunder.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
MEMBERSHIP ELIGIBILITY
(I) Compulsory Membership
All Provident Fund subscribers including those employed in Exempted Establishments contributing to the Employees’ Family Pension Scheme, 1971; and
All new entrants to the Provident Funds Scheme, 1952 from 16.11.95 onwards, automatically become members of the Employees’ Pension Scheme, 1995.
INDEX
(ii) Membership on Optional basis
Existing members of Exempted and Un- exempted Provident Fund Scheme as on 15.11.95 who are not members of the
Family Pension Scheme, 1971.
Members of the Family Pension Scheme, 1971 who left employment between 1.4.1993 – 15.11.95 whether they have withdrawn their benefits or not.
Beneficiaries of Family Pension Scheme 1971 who have died on or after 1.4.1993.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995CONDITIONS FOR OPTION TO JOIN THE SCHEME
(i) For Existing Members
Entitled to join retrospectively with effect from 1.3.1971 or the date of joining the EPF whichever is later.
Should pay the arrears of contribution with interest thereon.
(ii) For erstwhile Family Pension fund members who left between 1.4.93 & 15.11.95
If not withdrawn the benefit, Pension benefit will be based on service as on the date of exit. No extra contribution to be made.
If benefits already withdrawn, option available from the date of exit, on refund of amount & interest thereon.
INDEX
EMPLOYEES PENSION SCHEME, 1995
Retention of membership of Pension Fund: [Para – 6A]
A member of the Employees Pension Fund shall continue to be such member till he attains the age of 58 years, or he avails the withdrawal benefit to which he is entitled under para 14 of the scheme, or dies, or the pension is vested in him in terms of para 12 of the scheme, which ever is earlier.
INDEX
FUNDING OF THE SCHEME No separate/additional contribution is payable for
employees pension scheme.
8.33% of subscribers “Pay” by diverting from employers’ share of Provident Fund contributions.
1.1.6% of subscribers’ pay shall be paid by the Government as Government contributions.
Existing assets and liabilities of the ceased Family Pension Fund, 1971 as on 16.11.95 will from the corpus of the Scheme.
Provident Fund accumulations upto 15.11.95 (both shares with interest will remain available to members in toto. Likewise the balance of 1.67%/3.67% employer’s share of contribution in case of 10%/12% contribution rate will continue to remain in Provident Fund.
INDEX
EMPLOYEES’ PENSION SCHEME, 1995
DESIGN STRUCTURE OF THE SCHEME :
A “Benefit defined social insurance scheme”.
Designed with “social security” thrust following “Actuarial principles”.
Provides for “Old age and invalidation benefits to the member alongwith survivorship coverage to the family upon death of the member.
The Employees Pension Scheme 1995; provides for following benefit package.
I. For Member
(i) Pension Payment for life on Retirement/Superannuation.
(ii) Pension Payment for life on invalidation during employment.
(iii) Lump sum payment to the member by way of Commutation of Pension upto one third pension amount on optional basis.
(iv) Capital return on option formula basis upon cessation of members pension payment.
INDEX
II. Pension payment to Family Members upon Death of the Member
(i) To spouse for life or until remarriage.
(ii) To children (two at a time) till they attain the age of 25 years additionally alongwith pension
payment to spouse:-
For total & permanently disabled children pension for life and without any bar of two children at a time.
(iii) Orphan Pension to Children at higher rate upon cessation of Pension Payment to Spouse.
(iv) To Nominee/Dependent parents for life in case member is unmarried or having no eligible
family member.
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EMPLOYEES’ PENSION SCHEME, 1995
The scheme, in its benefit package precisely covers as under:-
(i) Pension payment to the member against contribution component diverted – permitting commutation/return of
capital on option formula basis; and
(ii) Complete security coverage to the family members for pensionary support in the event of members death delinking contribution component altogether on a Social Insurance Pattern.
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EMPLOYEES’ PENSION SCHEME, 1995
The Scheme covers members death risk unconditionally – i.e., irrespective of whether such death occurs.
(i) while in service;
(ii) away from employment and not contributing to the fund; or
(iii) after retirement as a pensioner.
The family members shall remain entitled for pensionary support uniformly.
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EMPLOYEES’ PENSION SCHEME, 1995
Special provisions made in the scheme to facilitate benefit availability / delivery for seasonal / casual employees
Employees engaged seasonally in any establishment, the period of “actual service” in any year, notwithstanding that such service is less than a year, shall be treated as full year for eligibility purpose [Para 9(a)];
Pensionable salary will be worked out “Notionally” for full month in the event of drawl of salary for a part of the month [Para 11(2)].
Pensionary benefits shall be extended to the members without co-relating compliance by the employer of the establishment [Para-16A].
INDEX
THE EMPLOYEES PENSION SCHEME,1995 ========================================
Para-43A. : Special Provisions in respect of “International Workers “as defined in Para-83 of the Employees Provident Fund Scheme, 1952. [Inserted vide Notification No.G.S.R.705 (E) dated 1.10.2008]
The Scheme shall, in its application to International Workers, as defined in Paragraph 83 of the Employees Provident Fund Scheme,1952 be subject to the following Modifications, namely:- (1) “Pensionable Service” – substituted definition provided for clause (xv) of Para-2 (2) “Determination Of Pensionable Service” – substituted Provisions
of sub-Para(1) of Paragraph-10. Sub-Para(2)Unchanged. (3) “Determination of Pensionable Salary” - substituted provision notified for Para-11 (4) “Benefits on leaving service before being eligible for monthly members’ pension” - substituted provisions notified for Para-14.
THE EMPLOYEES PENSION SCHEME,1995
============================================
1. Definition Of Pensionable Service: [Clause (xv) of Para-2] ---------------------------------------------------------------------------------------------------------- Pensionable Service’ means the service rendered by the member covered by a international social security agreement for which contributions have been received or are receivable, the period of service rendered and considered as eligible under such agreement.-Contribution receipt in Employees Pension Fund clause substituted and correlated With agreement provisions.
2. Determination of “Pensionable Service” [Sub-Para (1) of Paragraph-10] -------------------------------------------------------------------------------------------------------- ‘Pensionable Service’ of the member covered by an international social security Agreement shall be determined with reference to the contributions received or are Receivable on his behalf in the Employees Pension Fund, the period of service Rendered under a relevant social security programme and considered as eligible For benefits shall be added only for the purpose mentioned under such agreement. -Permissibility for adding foreign service period for eligibility reckoning provided- Sub-Para (2) provision for weightage of 2 years addition for 20 years contributory Membership with Employees Pension Fund remains applicable.
THE EMPLOYEES PENSION SCHEME,1995
======================================
3. Determination of “Pensionable Salary “ [ Para-11 ] ------------------------------------------------------------------------------------------------------ The ‘Pensionable Salary’ shall be the average monthly pay drawn in any manner Including on piece-rate basis during the contributory period of service of the Membership of the Employees Pension Fund. Proviso under Sub-Para (1) for ignoring non working period in average Calculation of last 12 months’ Pay, -
notional calculation in the event of Noncontributory period during last 12 months period under sub-Para (2), And permissibility of contribution payment option on salary higher than the Prescribed Pay ceiling limit for pension entitlement on such higher pay provided for in sub-Para (3) of Para 11 stands omitted
THE EMPLOYEES PENSION SCHEME,1995
=======================================
4. Benefits on leaving service before being eligible for “Monthly Members’ Pension” [ Para – 14 ] --------------------------------------------------------------------------------------------------- (1) If a member not being an Indian employee, hailing from a country with which India has entered into a social security agreement, has not rendered theiligible Service prescribed in paragraph-9 on the date of exit, or on attaining 58 years of age, whichever is earlier, he/she shall be entitled to a benefit as may be Prescribed in the said Agreement on reciprocal basis. (2) If a member not being an Indian employee hailing from a country with which India has not entered into a social security agreement, has not rendered the Eligible service specified in paragraph-9 on the date of exit, or on attaining the 58 years of age, whichever is earlier, his/her entitlement to the withdrawal Benefit under paragraph-14 shall be, on the principle of reciprocity, as may be Available to Indian employees in that country.
Right to Refund benefit and/or obtaining Scheme Certificate for future carryover not provided for.
EMPLOYEES’ PENSION SCHEME, 1995
TYPES OF MONTHLY PENSION PAYABLE
Member Pension : On superannuation / Disablement.
Widow Pension : Upon death of the member while in service, away from employment or
after superannuation as a pensioner.
Children Pension : Additionally alongwith Widow Pension.
Orphan Pension : After death of the member and the Widow/Widower or on Ceasing
Widow Pension payment on remarriage of Widow/Widower.
Nominee Pension : Upon death of the member having no Family.
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EMPLOYEES’ PENSION SCHEME, 1995
EXEMPTION
There are provisions for Exemption under the Scheme. Establishments already having any Pension Scheme or Intend to adopt any Pension Scheme with pensionary benefits on par or superior than the statutory Scheme are eligible to avail of the Exemption.
Exemption application is to be disposed off within a period of 6 months.
During Pendency of Exemption application, diversion of contribution to Pension Fund will not be required.
On grant of Exemption, withdrawal benefit payable to the outgoing members, shall be allowed to be paid/transferred to the Exempted Fund.
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EMPLOYEES’ PENSION SCHEME, 1995
VALUATION OF THE FUND
The fund will be actuarially valued every year.
The surplus arising out of such valuation will be utilized to improve the benefit quantum.
Annual valuation is expected to provide extra addition to pension quantum every year to the existing pensioners.
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EMPLOYEES’ PENSION SCHEME, 1995
COMMUTATION OF MEMBER PENSION
Option is available for commutation of Member Pension.
Commutation is permissible upto 1/3rd of pension amount.
Commuted value will be hundred times of pension amount so commuted.
Upon commutation, the balance amount of pension payable shall be the monthly pension. Capital return option under para 13 in such cases will be restricted balance amount of pension only.
N.B.: Facility withdrawn vide notification dated 26.9.2008
INDEX
PENSION OPTION FOR CAPITAL RETURNAn important feature of the Pension Scheme is to allow a member to choose any one of the following options providing for pension with return of capital:
OPTION NORMAL PENSION
REDUCED PENSION
RETURN OF CAPITAL
1. Reduced pension during life time pensioner with return of capital on his death.
Rs. 1,000 Rs. 900 Rs. 1,00,000
2. Reduced pension during member’s life
Rs. 1,000 Rs. 900 (member)
Reduced pension during spouses’ life time
Rs. 800 (spouse)
Return of capital to nominee after death of spouse
Rs. 90,000[In addition the spouse will be getting normal window pension of Rs. 500 per month]
3. Pension for fixed period of 20 years. Rs. 1,000 Rs. 875 Rs. 1,00,000 (after 20 years to him/her or to
nominee)
INDEX
COMPARATIVE CHART OF ANTICIPATED INTEREST INCOME FROM P.F. ACCUMULATION DIVERTED TO PENSION FUNDS-VIS-À-VIS
PENSIONARY BENEFITS AVAILABLE THERE AGAINSTASSUMED: i) Initial pay Rs. 1000 per month with assumed increase @ 10% per annum.
ii) Provident fund contribution accumulation @ 8.33% on wages/salary per month.
iii) Interest income on safe investment @ 12% per annum.Year Expected Pay Accumulated
ContributionInterest Income Normal
PensionOption Pension Return of Capital
10 2593 25606 256 370 333 37000
15 4177 64816 648 895 806 89500
20 6727 145935 1459 2114 1903 211400
25 10835 308268 3089 4179 3761 417900
30 17449 625526 6255 7977 7179 797700
35 28102 1234853 12349 14854 13669 1485400
40 45259 2389584 23896 27155 24440 2715500
NOTE: 1. OPTION 1 PENSION EXCEEDS INTEREST INCOME FROM PROVIDENT FUND ACCRETION DIVERTED TO PENSION FUND.2. PENSION OF CAPITAL ON DEATH OF PENSIONER / CESSATION OF MEMBER PENSION PAYMENT EXCEEDS ACCUMULATED PROVIDENT FUND CONTRIBUTION.3. PENSION QUATUM SHOWN ABOVE REPRESENTS INITIAL ENTITLEMENT ONLY. SAME IS LIKELY TO INCREASE ON YEAR TO YEAR BASIS.4. ONLY SUPERANNUATION / RETIREMENT PENSION ENTITLEMENT COMPARED. PENSION ENTITLEMENT ON DISABLEMENT / FAMILY PENSION ENTITLEMENT WILL BE FURTHER ADDITIONALITY.
PENSION INCOME PERCENTAGE ON CONTRIBUTIONCORPUS DIVERTED FORM PROVIDENT FUND
Year of Service
Accu Capital
Component
Monthly Pension Payable
Yearly Pension Payable
Earning of Pension to Capital %
Incase of Reduced
Pension by 10% less
1 2 3 4 5 6
10 25605 371 4452 17.4 15.66
15 64816 895 10740 16.6 14.94
20 145940 2114 25368 17.4 15.66
25 308868 4179 50148 16.2 14.58
30 625526 7977 95724 15.2 13.77
35 1234858 14854 178248 14.4 12.96
40 2389584 27156 325872 13.6 12.24
INDEX
CALCULATION OF AMOUNT ACCRUAL IN FAMILY PENSION FUND ACCOUNT (1971 SCHEME) VIS-À-VIS WITHDRAWAL BENEFIT ADMISSIBILITY THEREAGAINST (AS PER SCHEDULE UNDER PARA 32 OF THE SCHEME)
Period Rate of Interest
Salary Ceiling contribution
payment
Contribution @ 1 1/6 of Salary (employee
share)
Contribution diverted for the
year
Interest Payable (On Opening
Balance)
Total(Cumulative)
Withdrawal benefit
admissible
3/71 – 2/72 5.50% 1000 12 x 12 144 0.00 144.00 200.00
3/72 – 2/73 5.50% 1000 12 x 12 144 7.92 295.92 410.00
3/73 – 2/74 5.50% 1000 12 x 12 144 16.27 456.19 620.00
3/74 – 2/75 5.50% 1000 12 x 12 144 25.09 625.28 840.00
3/75 – 2/76 5.50% 1000 12 x 12 144 34.39 803.67 1060.00
3/76 – 2/77 5.50% 1000 12 x 12 144 44.20 991.87 1290.00
3/77 – 2/78 5.50% 1000 12 x 12 144 54.55 1190.42 1510.00
3/78 – 2/79 5.50% 1000 12 x 12 144 65.47 1399.89 1750.00
3/79 – 2/80 5.50% 1000 12 x 12 144 76.99 1620.88 1980.00
3/80 – 2/81 5.50% 1000 12 x 12 144 89.15 1854.03 2230.00
3/81 – 2/82 7.50% 1000 12 x 12 144 139.05 2137.08 2470.00
3/82 – 2/83 7.50% 1000 12 x 12 144 160.28 2441.36 2720.00
3/83 – 2/84 7.50% 1600 19 x 12 228 183.10 2852.46 4768.00
3/84 – 2/85 7.50% 1600 19 x 12 228 213.93 3294.39 5184.00
3/85 – 8/85 & 9/85 – 2/86 7.50% 1600/2500 19 x 6 + 29 x 6 288 247.08 3829.47 8775.00
3/86 – 2/87 7.50% 2500 29 x 12 348 287.21 4464.68 9450.00
3/87 – 2/88 7.50% 2500 29 x 12 348 334.85 5147.49 10125.00
3/88 – 2/89 8.50% 2500 29 x 12 348 437.53 5933.02 10850.00
3/89 – 2/90 8.50% 2500 29 x 12 348 504.30 6785.32 11550.00
3/90 – 10/90 & 11/90 – 2/91 8.50% 2500/3500 29 x 8 + 41 x 4 396 576.75 7758.07 17220.00
3/91 – 2/92 8.50% 3500 41 x 12 492 659.44 8909.51 18235.00
3/92 – 2/93 8.50% 3500 41 x 12 492 757.31 10158.82 19320.00
3/93 – 2/94 8.50% 3500 41 x 12 492 863.50 11514.32 20405.00
3/94 – 9/94 & 10/94 – 2/95 8.50% 3500/5000 41 x 7 + 58 x 5 577 978.71 13070.03 30700.00
3/95 – 15/11/95 8.50% 5000 58 x 8.5 493 694.35 14257.38 *Converted
Own contribution (Total) 6806.00 7451.42 14257.38 to Pension
Add: Employers Share 14257.38 Payment
TOTAL CONTRIBUTION WITH INTEREST 28514.76 Under EPS-95**Member Pension Rs. 500/- pm with commutation facility of 1/3rd pension (Rs. 16,666/-) OR Reduced Pension Rs. 450/- pm
with return of capital and commutation facility (Total Rs. 50,000/-) PLUS Family Pension to Spouse with children or nominee after death of the member.
Period Reference
Contribution accretion with interest @ 8.5% per annum
w.e.f. 18.11.95
Total
Contribution accretion
Member Pension entitlement on
superannuation / retirement
Past Service
period (FPF ’71 A/c upto
15.11.95)
Pensionable Service period EPS’95 (From
16.11.95 onwards)
EFPS – 1971
&
E.P.S. – 1995
Monthly Pension Amount as
admissible (past service + current service period)
Annual Quantum
Percentage earning to
total contribution
Amount as on 16.11.95
(Balance accretion in FPF’71 A/c)
28,515 NIL 28,515 (170 + 335) 505 6060 21.25
Y.E. 31.3.96 29,424 1,478 30,902 (178 + 335) 513 6153 19.91
31.3.97 31,925 6,820 38,745 (198 + 335) 533 6396 16.51
31.3.98 34,639 12,616 47,255 (218 + 335) 553 6636 14.04
31.3.99 37,583 18,905 56,488 (237 + 335) 672 6864 12.15
31.3.00 40,778 25,729 66,507 (261 + 357) 618 7416 11.15
31.3.01 44,244 33,133 77,377 (287 + 438) 725 8700 11.24
31.3.02 48,005 42,336 90,341 (318 + 525) 843 10116 11.20
31.3.03 52,085 52,711 1,04,796 (348 + 743) 1091 13092 12.49
31.3.04 56,512 63,965 1,20,477 (382 + 836) 1218 14616 12.13
Statement showing contribution accretion in “Pension Fund” on salary ceiling Paymentvis-à-vis the Pensionary entitlement for member on superannuation
INDEX
Pension entitlement and the quantum of pension amount worked out above denotes initial amount of member pension only on Superannuation. Same is likely to increase over the period of drawl with pension relief to be allowed upon annual valuation of the pension fund. Four annual valuation pension fund. Four annual valuations completed so far covering period upto 31.3.2000 have made available relief totaling 17.5% on the pension amount (1st year @ 4%, 2nd year @ 5.5%, 3rd year @ 4% and 4th year @ 4%)
Period Reference
Contribution accretion with interest @ 8.5% per annum
w.e.f. 18.11.95
Total
Contribution accretion
Member Pension entitlement on
superannuation / retirement
Past Service
period (FPF ’71 A/c upto
15.11.95)
Pensionable Service period EPS’95 (From
16.11.95 onwards)
EFPS – 1971
&
E.P.S. – 1995
Monthly Pension Amount as admissible (past service + current
service period)
Annual Quantum
Percentage earning to
total contribution
31.3.05 61,316 76,178 1,37,494 (420 + 929) 1349 16188 11.77
31.3.06 66,528 86,175 1,52,703 (462 + 1021) 1483 17796 11.65
31.3.07 72,183 97,022 1,69,205 (509 + 1114) 1623 19476 11.51
31.3.08 78,319 1,08,791 1,87,110 (560 + 1207) 1767 21204 11.33
31.3.09 84,976 1,21,560 2,06,536 (616 + 1300) 1916 22992 11.13
31.3.2010 92,199 1,35,139 2,27,338 (677 + 1393) 2070 24840 10.93
Statement showing contribution accretion in “Pension Fund” on salary ceiling Payment vis-à-vis the Pensionary entitlement for member on superannuation (contd.)
INDEX
Period Reference
Pay
Contribution accretion with interest
@ 8.5% per annumw.e.f. 16.11.95
TotalContribution
Member Pension entitlement onsuperannuation / retirement
Past Service period
(FPF ’71 A/c upto 15.11.95)
Pensionable Service period EPS’95 (From
16.11.95 onwards)
EFPS – 1971
&
E.P.S. – 1995
Monthly Pension Amount as
admissible (past service + current service period)
Annual Quantum
Percentage earning to
total contribution
Amount as on
15.11.95 (Balance accretion in FPF’71
A/c)
5000 28515 NIL 28515 (170 + 335) 505 6060 21.25
“” 4/96 5000 29424 1478 30902 (178 + 335) 513 6153 19.91
“” 4/97 5500 31925 7337 39262 (198 + 335) 533 6396 16.29
“” 4/99 6000 34639 14216 48855 (218 + 335) 553 6636 13.58
“” 4/99 6500 37583 22201 59784 (237 + 371) 608 7296 12.20
“” 4/00 7000 40778 31386 72164 (261 + 500) 761 9132 12.65
“” 4/01 7500 44244 41873 86117 (287 + 643) 930 11160 12.95
“” 4/02 8000 48005 50772 101777 (318 + 800) 1118 13416 13.18
Statement showing contribution accretion in “Pension Fund” on total salaryvis-à-vis the Pensionary entitlement for member on superannuation INDEX
Period Reference
Pay
Contribution accretion with interest
@ 8.5% per annum w.e.f. 16.11.95
TotalContribution
Member Pension entitlement onsuperannuation / retirement
Past Service period
(FPF ’71 A/c upto 15.11.95)
Pensionable Service
period EPS’95 (From
16.11.95 onwards)
EFPS – 1971
&
E.P.S. – 1995
Monthly Pension Amount as
admissible (past service + current service period)
Annual Quantum
Percentage earning to
total contribution
“” 4/03 8500 52085 68074 120159 (348 + 971) 1391 15828 13.17
“” 4/04 9000 56512 83243 139755 (382 + 1157) 1539 18468 13.21
“” 4/05 9500 61316 100222 161538 (420 + 1357) 1777 21324 13.20
“” 4/06 10000 66528 114166 180694 (462 + 1571) 2033 24396 13.50
“” 4/07 10500 72183 129566 201749 (509 + 1800) 2309 27708 13.73
“” 4/08 11000 78319 146547 224866 (560 + 2043) 2603 31236 13.89
“” 4/09 11500 84976 165242 250218 (616 + 2300) 2916 34992 13.98
“” 4/10 12000 92199 185798 277997 (677 + 2571) 3248 38976 14.02
Statement showing contribution accretion in “Pension Fund” on total salaryvis-à-vis the Pensionary entitlement for member on superannuation (contd.)
INDEX
UNIQUE FEATURES OF THE EMPLOYEES’ PENSION SCHEME, 1995UN-COMMON WITH OTHER ONGOING PENSION SCHEMES
i) Pensionary coverage in combination with contributory provident fund system. Normally Pension and contributory Provident fund arrangement are mutually exclusive.
ii) Contingency coverage on social insurance concept in combination with annuity ingredients – Provision of capital return on option formula basis besides pension payment and commutation.
iii) Provision of children pension payment (two at a time) in addition to Widow / Widower pension independently.
iv) Provision of Orphan Pension at higher rate (combining widow & children pension amount) upon cessation of pension payment to spouse on death / remarriage.
v) Continuance of Family Pension entitlement even after return of capital – normally not expected in annuity / investment arrangement.
vi) Pension entitlement on disablement / death without any eligibility requirement.
vii) Member’s death risk coverage and protection of Pension entitlement to family during unemployment period and not contributing to the fund – a much needed protection for unorganized and weaker section of work force belonging to category of seasonal workers, casual labour and alike unstable work group who neither work on regular basis nor can provide for themselves and/or their family.
Pension System as old age / Post service retiral benefit in general, prevalent in
India
1. Social assistance Pension Scheme for elderly poor / destitute by Central / State Government and Government agencies.
2. State financed pension for ex-legislators and freedom fighters.
3. Employer liability Pension as retiral benefit for Government / Semi-Government / Statutory body employees.
4. Occupational type Pension Scheme, mostly employer liability based, for specified categories / groups in Public / Private Sector establishments.
5. Employees’ Provident Fund linked Pension Scheme for Industrial & Commercial Sector employees.
6. Complementary private Pension / Annuity programme operated by Insurance / Financial Institutions.
INDEX
PENSION PAYMENT PROVISIONS
MONTHLY MEMBER’S PENSION
It is payable on superannuation if the following two conditions are satisfied :
The member should have completed 10 years of Pensionable Service;
and The member should have attained the age of 58 years.
Early pension may be availed at the option of the member before attaining the age of 58 years, but not less than 50 years of age, on ceasing employment. In such an event the pension will be reduced by 3% for every year of shortfall.
No pension payment is permissible before attaining the age of 50 years.
INDEX
DISABLEMENT PENSION
Eligibility (i) On permanent disablement of the member during employment.
(ii) No qualifying period is prescribed.
(iii) Membership with one month’s contribution to the pension fund is enough.
Entitlement The pension is payable from the date following the date of permanent total disablement.
Quantum of Pension Members entitlement as per pension formula subject to minimum Rs. 250/- per month.
INDEX
“Superannuation”, in the relation to an employee, who is the member of the Pension Scheme, means the attainment, by the said employee, of the age of fifty-eight years.
[Sec. 2(ii) of the Act]
“Pension” means the pension payable under the Employeees’ Pension Scheme and also includes the family pension admissible and payable under the Employees’ Family Pension Scheme, 1971 immediately preceding the commencement of the Employees’ Pension Scheme, 1995 with effect from the 16th November, 1995.
[Para 2(viii) of the scheme]
“Permanent total disablement” means such disablement of permanent nature as incapacitates an employee for all work which he/she was capable of performing at the time of disablement, regardless whether such disablement is sustained in the course of employment or otherwise.
[Para 2(xvi) of the scheme]
Past Service: [2(1)(xii)]
“Past service” means the period of service rendered by an existing member from the date of joining Employees’ Family Pension Fund till the 15th November, 1995.
Pensionable Service: [2(1)(xv)]
“Pensionable service” means the service rendered by the member for which contributions have been [received or are receivable].
Eligible Service: [9(a) & (b)]
In the case of “new entrant” the “actual service” shall be treated as eligible service. The total actual service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored.
In the case of “existing member” the aggregate of actual service and the ‘past service’ shall be treated as eligible service.
INDEX
THE EMPLOYEES’ PENSION SCHEME, 1995PENSION COMPUTATION PROVISION
I. Members Pension on Superannuation / Retirement [Para 12]
(a) For members entitling between 1.4.93 and 15.11.95
Pension payable as per table appended under para 12(3)(b),
Subject to minimum pension amount of Rs. 500/600 per month in accordance with age group of above or below 53 yrs. On 16.11.1995 for
24 years membership under the ceased Family Pension Scheme, 1971. If the membership period is lesser, proportionately lesser, pension but not less than Rs. 265 per month.
(b) For members retiring after 16.11.95
(1) For past service period upto 15.11.95 : Pension payable as per table under para 12(3)(b) enhanced by factor in Table – B corresponding to the period between 16.11.95 and the date of attainment of age 58 years; plus
(2) For current service period from 16.11.95 onwards : Pension calculated as per formula under para 12(2). Or the pension amount of Rs. 335/438/635 per month which is higher;
Subject to minimum aggregate pension of Rs. 500/600/800 per month as per age group of retirees on 16.11.95, being 53 years / 48-53 years and below 48 years respectively.
II. (1) Members Pensions on Disablement [Para 15]
Pension Payable as per para – 12 subject to minimum of Rs. 250 p.m.
INDEX
THE EMPLOYEES’ PENSION SCHEME, 1995
II. Computation of Family Pension entitlement
Widow / Widower pension : [Para 16(2)]
(i) Upon death of the member before attaining Superannuation age / vesting of pension earlier
Members pension entitlement if the member had retired on the said date; or
Quantum of Pension payable on salary on the day of death as per Table ‘C’; or
Minimum widow pension prescribed i.e. Rs. 450 pm whichever is the highest.
(ii) Death after superannuation age / vesting of pension :
50% equivalent of members pension subject to minimum pension of Rs. 450 p.m.
(iii) Children Pension : [Para 16(3)]
Payable in addition to widow pension @ 25% of widow pension subject to Rs. 150 minimum per child per month.
(iv) Orphan Pension : [Para 16(4)]
Payable @ 75% of widow pension subject to Rs. 250 minimum per month per child.
(v) Nominee / Dependent Parents pension : [Para 16(5)]
Shall be entitled to receive pension equivalent to the quantum payable to the widow
INDEX
THE EMPLOYEES’ PENSION SCHEME, 1995
III. Benefit on exit without pension eligibility [Para – 14]
(1) Benefit attaining Superannuation age of 58 years
Option for obtaining scheme certificate for future addition; or
Availing withdrawal benefit as laid down in Table – D for pensionable service period from 16.11.95 onwards and Table – A multiplied by Table – B factor for the period from 16.11.95 to the date of exit for the past service period upto 15.11.95.
(2) Upon attaining the age of 58 years
Refund benefit as admissible in (1) above.
INDEX
THE EMPLOYEES’ PENSION SCHEME, 1995Formula for calculation of Pension for retirees with combination of Past
Service & Pensionable Service [Para 12]
I. Past service Pension payable as per table below para 12(3)(b) multiplied by factory in table ‘B’ for the period between 16.11.95 and the date of retirement. (Actual Amount)
-Plus-
II. Formula pension for the pensionable service period from 16.11.95 onwards subject to minimum quantum prescribed in para 12(3), 12(4) and 12(5) as per age group of the member as on 15.11.95, viz
Amount for Pensionable Total aggregate Reduced Pension
Service period Pension Amount Amount
(A) (B) (C)(a) 53 years & above Rs. 335/- Rs. 500/- Rs. 265/-(b) 48-53 years Rs. 438/- Rs. 600/- Rs. 325/-(c) below 48 years Rs. 635/- Rs. 800/- Rs. 450/-
If the aggregate Pension falls short of minimum pension of Rs. 500/600/800 as the case may be, the pension quantum shall be raised to minimum pension amount prescribed in II (B) above and subjected to 24 years eligible services requirement, if service falls short of 24 years, the pension quantum to be reduced proportionately but not lesser than reduced minimum quantum in II (C) above.
INDEX
THE PAST SERVICE BENEFIT PAYABLE AS ON 16.11.1995
Means of
Past Service
Upto 11 Yrs.
(In Rs.)
Between
11 – 15 Yrs.
Between
15 – 20 Yrs.
Exceeding
+ 20 Yrs.
1. Salary upto Rs. 2500/-
2. Salary of Rs. 2500 & above
Rs. 80.00
Rs. 85.00
Rs. 95.00
Rs. 105.00
Rs. 120.00
Rs. 135.00
Rs. 150.00
Rs. 170.00
PAST PENSION IN THE YEAR OF EXIT
PAST
SERVICE
24
YEARS
YEAR OF EXITYEAR OF EXIT
400
350
300
250
200
150
100
50
0
400
350
300
250
200
150
100
50
0
PAST
SERVICE
24
YEARS157
173
190
208
230
253
279
287
297
371
178
198
218
237
281
287
318
343
382
420
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
INDEX
PENSIONABLE SALARY
Pensionable salary is the average salary of the member drawn during the last 12 months.
PENSIONABLE SERVICE
Pensionable service is the service of the member for which contribution for the pension fund is made.
PENSION CALCULATION FORMULA
Pensionable Salary x Pensionable ServiceMonthly Members Pension =
70
Pension is also payable for membership period under ceased Family Pension Scheme, 1971 as past Service benefit based on factor formula of table & Schedule ‘B’.
INDEX
Employees Pension Scheme, 1995Computation of Pension – relevant operational details
Part – I
(a) Name of the member : X Y Z
(b) Date of birth : 16.2.49 15.6.43 30.11.37
(c) Date of joining FPFmembership 2.3.85 1.7.78 1.8.71
(d) Date of exit : 30.9.2000 31.5.98 30.11.95
(e) Age of exit : 51-6-14 55-11-15 58-0-0(52 yrs.) (56 yrs.) (58 yrs.)
(f) Age of 15.11.95 : 46-9-0 52-5-0 58-0-0(47 yrs.) (52 yrs.) (58 yrs.)
(g) Pay as on 15.11.95 : Rs. 2450 Rs. 3500 Rs. 6500
(h) Past service period : 10-8-13 17-4-17 24-3-14(11 yrs.) (17 yrs.) (24 yrs.)
(i) Pensionable Service Period : 4-10-13 2-6-14 0-0-15(5 yrs.) (3 yrs.) (NIL)
(j) Pensionable salary : Rs. 3750 Rs. 5000 Rs. 6500
INDEX
Computation of Pension Calculation detailsPension Computation for ‘X’ [Para 12(3)]
(a) Past service pension for 11 yrs. – multiplied Rs. 80 x 1.536by Table ‘B’ factor for less than 5 yrs. = Rs. 123.00
(b) Pensionable Service – 5 yrs.Pension Payable Rs. 3750 x 5/70higher of formula pension or = Rs. 268.00Rs. 635 …..[Age below 48 yrs. on 15.11.95]
Pension Payable as above: (a) + (b) = Rs. 123.00Rs. 635.00
TOTAL Rs. 738.00
Minimum pension prescribed Rs. 800.00On attaining age 58 yrs. with 24 yrs. Service membership.So pension entitlement be raised to Rs. 800 p.m. to be reducedproportionately for total eligible service being less than 24 yrs. as under:-
Rs. 800 x 16/24 = Rs. 533.00Less: Deduction for early pension: Discount @ 3% Rs. 89.00for shortfall for 58-52 yrs., i.e., 6 years x 3% per year of short fall(Deduction on reduced balance method)
Balance Rs. 444.00
Balance pension amount of Rs. 444 is less than minimum reduced pension amount prescribed at Rs. 450 p.m. So the amount of pension payable shall be Rs. 450 per month for life from date following the date of retirement, i.e., 1.10.2000.
INDEX
PENSION COMPUTATION FOR ‘Y’
I) Age at exit 56 years [Para 12(4)]
(a) Past Service Pension for 17 years as per table ‘B’ factor forLess than 3 years Rs. 135 x 1.269 = Rs. 171.00
(b) Pensionable Service for 3 years as per Rs. 5000 x 3/70formula subject to minimum Rs. 438 (Rs. 214) Rs. 438.00[Age between 48-53 years on 15.11.95]
Total Pension payable subject to minimum of Rs. 600 Rs. 609.00
(c) Discount for early pension payment by 2 yearsAt age 56 years Rs. 36.00
Balance pension payable per month(not less than Rs. 325 p.m.) Rs. 573.00
INDEX
PENSION COMPUTATION FOR ‘Z’
- Age at exit – 58 years- Age on 15.11.95 – 58 years [Para 12(5)]
(a) Past Service Pension for 24 years –multiplied by Rs. 170 x
1.049Table ‘B’ factory for less than one years = Rs.
178.00
(b) Pensionable Service – 15 daysPension payable – higher of formula pension orRs. 335 = Rs. 335.00[Age group above 53 years as on 15.11.95]
TOTAL = Rs. 513.00
Total pension entitlement being higher than minimum pension prescribed Rs. 500 p.m. The actual quantum worked out shall be made available. So also eligible service being 58 years and eligible service being above 24 years. No adjustment otherwise is necessary.
INDEX
Pension Calculation – Members Pension on Retirement/Superannuation
I. Pension Computation for ‘Mr. X’(a) Calculation on pay ceiling contribution:
(Ref. Para 12(3) of EPS-95)
(i) Past service pension for above 20 yrs. slab multiplied by table ‘B’ factor for less than 14 years (difference between 16.11.95 as the date of exit)
Rs. 170 x 2.826 = Rs. 480.42(ii) Pensionable service period pension:
13yrs. x 6500 = Rs.1207.14
70 Total Rs. 1,687.56
or Rs. 1688 PM
Pension Calculation – Members pension on Retirement/Superannuation (contd.)
(I) (b) Calculation on actual pay basis: (Ref. Para 12(3) read with para 11(3) of EPS-95)
(i) Past service pension same as above:Rs. 170 x 2.826 =Rs. 480.42(ii) Pensionable service period pension : Rs. 10,000x13 = Rs.1857.14
70 Total
Rs.2337.56 or Rs.
2338 PM
N.B. Pension is becoming payable on attaining the age of 58 yrs. Hence actual amount is payable – no deduction
Pension Calculation – Members pension on Retirement/Superannuation (contd.)
II. Pension Computation for “Mr. Y”:a) Calculate in pay ceilling contributions:
(Ref. Para 12(3) of EPS-95)
(i) Past service period pension >11 yrs. slab multiplied by table ‘B’ factor for less than 18 yrs. (difference between 16.11.95 as the date of exit)
Rs. 105x3.845 = Rs. 403.72(ii) Pensionable service period pension for 17 yrs.
Rs. 6500x17 70 = Rs. 1578.57
Total 1982.29Less: Discount @ 4% for 4 years short of age less than - 317.1658 years at exit. Balance Payable = Rs. 1665.13
or Rs.1665 PM
Pension Calculation – Members pension on Retirement/Superannuation (contd.)
(ii) (b) Calculation on actual pay basis: (Ref. Para 12(3) read with para 11(3) of EPS-95)
(i) Past service pension same as above:Rs. 105 x 3.845 =Rs. 403.72(ii) Pensionable service period pension : Rs. 12,500x17 = Rs.3035.71
70 Total
Rs.3439.43 Less: Discount @ 4% for 4 years short of age less than 58 years at exit - 550.30
Balance Payable = Rs. 2889.13
or Rs.2889 PM
Pension Calculation – Members pension on Retirement/Superannuation (contd.)
III. Pension Computation for “Mr. Z”:a) Pension calculation on pay ceiling contribution:
(i) Past service period pension 3 yrs. - upto 11 yrs.
slab amount multiplied by less than 34 yrs. factor
given in Table B. Rs. 85x13.173 = Rs. 1190.70
(ii) Pensionable service period pension for 34 yrs.
Rs. 6500x34+2 = Rs. 3342.85
70
Total Rs. 4462.55
Less: Discount @ 4% for 1 year short of age than 178.50
58 years at exit. Balance Payable= Rs. 4284.05
or Rs. 4284/=
Pension Calculation – Members pension on Retirement/Superannuation (contd.)
III. (b) Calculation on Actual Pay contribution:
(i) Past service period pension 3 yrs. ± upto 11 yrs. Slab amount multiplied by less than 34 yrs. Factor given in table B. Rs.1190.70
(ii) Pensionable service period pension for 34 yrs.
Rs. 21000x34+2 Rs. 10800.00
70
Total Rs. 11919.70
Less: Discount @ 4% for 4 years short of age less
than 58 years at exit - 476.76
Balance Payable = Rs. 11442.94
or Rs.11443 PM
(Assumed daily wage taken @ Rs. 100 per day with no periodical escalation for calculation purpose)Members’ pension entitlement only worked out Rs. 1166.67 x 3.37(on Actual basis) 70Pensionable Salary – Rs. 14,000 ÷ 12 = Rs. 1166.67Pensionable Service – 1230 days = 3.37 year(on Notional basis)1. Pensionable service taken……. 10 years.2. Pensionable salary worked out as average of last 12 months @ Rs. 3000 p.m.3. Formula pension under para 12 of EPS – 95 apply:Pensionable Service x Pensionable Salary Rs. 3,000 x 10to be divided with factor 70) = Rs. 428.57
70Minimum reduced pension Rs. 450
Year No. of Days actually worked
Entitlement reckoning on notional basis
Actual Wageon which
contribution paid
Wage taken for Pension Calculation purpose on
notional basis
1st 100 days One Year (365 days)
Rs. 10,000 Rs. 36,000
2nd 120 days – do – Rs. 12,000 Rs. 36,000
3rd 125 days – do – Rs. 12,500 Rs. 36,000
4th 130 days – do – Rs. 13,000 Rs. 36,000
5th 80 days – do – Rs. 8,000 Rs. 36,000
6th 110 days – do – Rs. 11,000 Rs. 36,000
7th 115 days – do – Rs. 11,500 Rs. 36,000
8th 150 days – do – Rs. 15,000 Rs. 36,000
9th 160 days – do – Rs. 16,000 Rs. 36,000
10th 140 days – do – Rs. 14,000 Rs. 36,000
TOTAL
1230 days 3650 Rs. 1,23,000 Rs. 3,60,000
Pensionary Benefit admissibility to Casual / Contractor’s employees on notional basis through relaxed provision allowed for such category of workers under the Employees’ Pension Scheme ‘95
= Rs. 56.17
MONTHLY WIDOW PENSION
The monthly widow pension is payable in the following contingencies:
(i) Member’s death while in service.(ii) Member’s death during non-employment.
(A member who has ceased to contribute to the
Fund but retains his membership)(iii) On pensioner’s death after superannuation.
No eligibility period – Membership with one contribution is adequate.
INDEX
EXAMPLE
WIDOW PENSIONDeath of member during service Equal to member’s pension assuming that the member retired on the date of death or as per Table ‘C’ or Rs. 450 whichever is more
Pensionable Salary Rs. 3000
Period of service at thetime of death 20 years
Widow Pension Pensionable Salary x Pensionable Service +2 70
Rs. 3000 x 22= Rs. 943
70(Minimum widow pension in Rs. 450 p.m.)
Amount payable as per Table ‘C’ = Rs. 1281 per monthSo, Pension of Rs. 1281 per month will be payable
INDEX
EXAMPLE
DEATH AFTER SUPERANNUATION
Assuming member’s pension Rs. 1600 p.m.
Widow Pension Rs. 800 p.m.(50% of member’s pension)
(Children Pension will be paid in addition to Widow Pension maximum upto two children at a time)
INDEX
MONTHLY CHILDREN PENSION
Children pension is payable in every case of widow pension.
It is payable to maximum of two children at a time, till they attain the age of 25 years.
The quantum of children pension is 25% of widow pension per child. The minimum monthly children pension will be Rs. 150 per month.
In cases where the member is having more than two children, the eligibility for pension will run from the
eldest to the younger child, in that order.
INDEX
MONTHLY ORPHAN PENSION
It is payable when neither member nor his / her widow / widower is alive or Widow /Widower ceases to receive pension on remarriage.
It is payable upto two surviving children till they attain the age of 25 years.
The amount of monthly orphan pension will be 75% of monthly widow pension for each orphan.
The orphan pension will be paid only to two orphans at a time and it will run from the eldest to the youngest, in that order. The minimum orphan pension will be Rs. 250.
INDEX
EMPLOYEES PROVIDENT FUND ORGANIZATIONDETAILS OF PENSIONERS WITH WAGE SLAB WISE BREAK-UP
AS ON 30.9.1998
SI Region Upto 1000 1001-2500 2501-5000 Above 5000 Total
1 2 3 4 5 6 7
1 AP 4710 5903 10609 370 21592
2 BR 2728 3354 1397 224 7703
3 DL 583 2855 2232 0 5670
4 GJ 451 4523 4755 0 9729
5 HP 76 592 516 0 1184
6 HR 258 2961 1797 48 5064
7 KN 12316 8375 9677 131 30499
8 KR 10587 6374 5884 1672 24517
9 MH 2775 13518 10289 158 26840
10 MP 1651 5331 4261 377 11620
11 NE 288 518 548 84 1438
12 OR 773 1491 706 22 2992
13 PB 673 2544 1388 111 4716
14 RJ 703 1977 2154 45 4879
15 TN 10550 13398 15648 148 39744
16 UP 3218 4726 9061 22 17027
17 WB 1552 3762 2422 110 7846
TOTAL 53892 82302 83344 3522 223060
% to Total (24%) (37%) (37%) (2%)
INDEX
DETAILS OF PENSIONERS WITH WAGE SLAB WISE BREAK-UPAs on 31.12.99
SI Region Upto 1000 1001-2500 2501-5000 Above 5000 Total
1 2 3 4 5 6 7
1 AP 10820 10781 20671 1591 43863
2 BR 5867 6883 3645 264 16659
3 DL 627 3241 3495 0 7363
4 GJ 2012 8913 8365 3 19293
5 HP 133 842 856 0 1831
6 HR 335 4006 2985 63 7389
7 KN 13679 10683 12687 639 37688
8 KR 17547 14612 8848 569 41576
9 MH 5001 24951 19048 902 49902
10 MP 3656 8674 7107 1608 21045
11 NE 699 1476 1918 349 4442
12 OR 3012 2111 1600 934 7657
13 PB 1527 3229 3217 32 8005
14 RJ 1987 4821 5918 192 12918
15 TN 15141 20393 28507 241 64282
16 UP 4117 8205 10850 355 23527
17 WB 6949 19189 14386 468 40992
TOTAL 93109 153010 154103 8210 408432
Percentage 22.80 37.46 37.73 2.01of totalPensioners
INDEX
DETAILS OF PENSIONERS WITH WAGE SLAB WISE BREAK-UPAs on 31.12.2000
SI Region Upto 1000 1001-2500 2501-5000 Above 5000 Total
1 2 3 4 5 6 7
1 AP 15971 15583 25795 1983 59332
2 BR 9290 11038 8421 264 29013
3 DL 877 4261 5493 0 10631
4 GJ 3189 12251 11883 3 27326
5 HP 164 1020 1171 11 2366
6 HR 357 4861 4547 72 9837
7 KN 16043 13464 19594 870 49971
8 KR 21626 17773 11788 698 51885
9 MH 7114 35522 27499 902 71037
10 MP 5311 10475 9369 1574 26729
11 NE 954 2100 2606 407 6067
12 OR 4071 3603 3032 1465 12171
13 PB 2538 4695 4693 52 11978
14 RJ 2852 6166 7903 523 17444
15 TN 19296 26506 35726 366 81894
16 UP 5541 13828 14799 723 34891
17 WB 6097 18587 16009 501 41194
TOTAL 121291 201733 210328 10414 543766Percentage 22.31 37.10 38.68 1.92of totalPensioners
INDEX
Salary-wise distribution of Pension Fund Membership as on 31.3.1998
(Sample quantum 3306038)Salary Level Number of Members Percentage Cumulative %
Belonging to Salary slabs
Cumulative
Upto 500 203274 203279 6.15 6.15
500-1000 877162 1080441 26.53 32.68
1000-1500 722945 1803386 21.87 54.55
1500-2000 212668 2016054 6.43 60.98
2000-2500 381111 2397165 11.53 72.51
2500-3000 139435 2536600 4.22 76.73
3000-3500 104858 2641458 3.17 79.90
3500-4000 75411 2716869 2.28 82.18
4000-4500 56835 2773704 1.72 83.90
Above 5000 532334 3306038 16.10 100.00
INDEX
BACKGROUND DETAILS IN THE DEVELOPMENTOF THE EMPLOYEES PENSION SCHEME, 1995
1. Opinion Survey of Employee’s Provident Fund subscribers by National Institute of Public Finance & Policy, New Delhi – Combination of lump sum payment with monthly pensionary support recommended.
[1984-85]
2. Technical feasibility study by a team of three actuaries headed by the then Chairman of LIC conducted – Modest pension scheme with contribution rate between 9-12% could be possible.
[1988-89]
3. Tripartite sub-committee of the Central Board of Trustees availing services of an expert professional actuary formulates draft pension scheme – CBT recommends pension scheme to the Central Government.
[1991-92]
4. Central Government Accepts CBT’s recommendations – decides to amend the EPF & MP Act, ’52 empowering Government to frame pension scheme for EPF subscribers – Introducing amendment bill in Rajya Sabha.
[Mar. 1993]
5. Promulgates presidential Employees’ Provident Fund & Miscellaneous Provision (Amendment) ordinance, in October 1995 – Central Government notifies the Employees Pension Scheme on 16.11.95.
6. Parliament enacts the Employees’ Provident Fund & Miscellaneous Provision (Amendment) Act, 1996 on 03.08.1996 – President asserts the Act and notified on 16.08.1996.
INDEX
NO. OF FULLYEARS’ CONTRI–
BUTION PAID
PROPORTION OF PAY PAYABLE AT CESSATION OF
MEMBERSHIP
(1) (2)
123456789
1011121314151617181920
0.200.410.620.841.061.291.511.751.982.232.472.722.983.243.513.784.054.344.624.92
TABLE A(See Paragraph 14)
(WITHDRAWAL BENEFIT)
NO. OF FULLYEARS’ CONTRI–
BUTION PAID
PROPORTION OF PAY PAYABLE AT CESSATION OF
MEMBERSHIP
(1) (2)2122232425262728293031323334353637383940
5.215.525.836.146.466.797.127.467.818.168.528.899.269.6410.0310.4310.8311.2411.6612.08
(1) (2) (1) (2)
YEARS FACTOR YEARS FACTOR
Less than 1Less than 2Less than 3Less than 4Less than 5Less than 6Less than 7Less than 8Less than 9Less than 10Less than 11Less than 12Less than 13Less than 14Less than 15Less than 16Less than 17
1.0391.1221.2121.3091.4131.5261.6491.7811.9232.0772.2432.4232.6162.8263.0523.2963.560
Less than 18Less than 19Less than 20Less than 21Less than 22Less than 23Less than 24Less than 25Less than 26Less than 27Less than 28Less than 29Less than 30Less than 31Less than 32Less than 33Less than 34
3.8454.1524.4854.8435.2315.6496.1016.5897.1177.6868.3018.9659.682
10.45711.29412.19713.173
TABLE B (See Paragraph 12 and 14)(FACTOR FOR COMPUTATION OF PAST SERVICE BENEFIT [UNDER THE CEASED]
FAMILY PENSION SCHEME FOR EXISTING MEMBERS ON EXIT FROM THE EMPLOYMENT)
(As amended vide Govt. of India notification dt. 10.6.2008)
Salary at day of death not more than
Equivalent widow pension
(1) (2)
(Rupees)Upto 300
350400450500550600650700750800850900950
10001050110011501200125013001350140014501500
(Rupees)250327343359375391408425442459476493510527544561578595612629646664682700718
TABLE C (See Paragraph 16)(EQUIVALENT WIDOW PENSION)
(Cont... .)
Salary at day of death not more than (Rs.)
Equivalent widow pension (Rs.)
155016001650170017501800185019001950200020502100215022002250230023502400245025002550260026502700275028002850290029503000
736754772797808826844862880898916935954973992101110301049106810871106112511441163118212011221124112611281
(Cont... .)
Salary at day of death not more than (Rs.)
Equivalent widow pension (Rs.)
30503100315032003250330033503400345035003550360036503700375038003850390039504000405041004150420042504300435044004450
13011321134113611381140114211441146114811501152115411561158116011621164116611681170117211741175117611771178117911801
(Cont... .)
Salary at day of death not more than (Rs.)
Equivalent widow pension (Rs.)
45004550460046504700475048004850490049505000505051005150520052505300535054005450550055505600565057005750580058505900
18111821183118411851186118711881189118961901190619111916192119261931193619411946195119561961196619711976198119861991
(Cont... .)
Salary at day of death not more than
(Rs.)
Equivalent widow pension (Rs.)
595060006050610061506200625063006350640064506500
199620012006201120162021202620312036204120462051
YEAR OF SERVICE PROPORTION OF WAGES AT EXIT
123456789
1.021.992.983.995.026.077.138.229.33
TABLE D(RETURN OF CONTRIBUTION ON EXIT FROM THE EMPLOYMENT)
(See Paragraph 14)
(As amended vide Govt. of India notification dt. 10.6.2008)
YEAR OF SERVICE PROPORTION OF WAGES AT EXIT
123456789
0.9781.9793.0034.0515.1246.2217.3458.4949.671
TABLE E(TRANSFER OF CONTRIBUTION FROM EMPLOYEES’ PENSION SCHEME,
1995 TO EXEMPTED OR OTHER PENSION FUND OR VICE-VERSA)(See Paragraph 39-B)
COMPARATIVE BENEFIT ADMISSIBILITY POSITION IN RESPECT OF GOVT. EMPLOYEES’ PENSION SCHEME AND THE EMPLOYEES’ PENSION SCHEME, 1995
GOVT. EMPLOYEES’ PENSION SCHEME [CCS (PENSION) RULES, 1972]
EMPLOYEES’ PENSION SCHEME, 1995
1. APPLICABILITY: Applicable to all regular employees. Contract / casual employees not covered.
Applicable for all category of employees including contract / casual employees.
2. ADMISSIBILITY: Pension admissible on retirement (including
early retirement on voluntary basis) with minimum 20 years pensionable service.
(10 yrs. Service on permanent absorption transfer)
Waiting for attaining Superannuation age not required.
Pension admissible on superannuation / retirement with minimum 10 years pensionable service.
Payable on attaining superannuation age – 58 years.
Early drawal at discounted rate permissible between 50-58 years of age.
No pension payment below 50 years of age.
3. PENSION ENTITLEMENT
(I) Members entitlement Pension and Gratuity on retirement of the
employee.
(II) Family Pension Benefit
(a) Death while in service:Family Pension and Gratuity upon death of the member while in service.
(I) Members entitlement Pension and Gratuity plus partial benefit
of C.P.F. (i.e., balance 3.67% of the Employer’s contribution).
(II) Family Pension Benefit
(i) Death while in service:Family Pension, Gratuity plus partial benefit of C.P.F. (i.e., balance 3.67% of the Employer’s contribution)
(b) Death as a pensioner:Family Pension is paid to the Family members.
(c) Death away from service:No benefit of Family Pension is available in such cases.
N.B For members unmarried / leaving no eligible family members, provision exists in Employees’ Pension Scheme 1995 for pension payment to “Nominee” for life. Quantum of Nominee Pension shall be equivalent to “Spouse Pension”.
No such provision exists in the Govt.’s Employees Pension Scheme.
(ii) Death as a pensioner:Pension payable to the Family members.
(iii) Death away from service:Pension payable to the Family members.
4. NO. OF BENEFICIARIES IN CASE OF DEATH:
Only one member of the family is paid Family Pension at a time, as under:-
Pension to widow / widower till death or re-marriage. Thereafter to eldest child below the age of 25 years (one at a time). For daughters 25 years or till marriage.
Disabled children will also stop receiving Family Pension on attaining the age of 25 years.
Three members of the family are paid Family Pension at a time, as under:-
To spouse and two children at a time till 25 years of age. (For handicapped child no age bar – Pension for life).
Upon death / re-marriage of spouse, children pension converted as Orphan Pension at enhanced rate.
Daughters are also eligible to get Family Pension uniformly till the age of 25 years irrespective of their being / getting married.
Disabled child will get pension throughout his life irrespective of the number of children in the family.
QUANTUM OF BENEFITS:
MEMBER PENSION
50% OF Pay subject to a minimum of Rs. 1250 on completion of 33 years of service.
No weightage of service beyond 33 years.
FAMILY PENSION
30% of pay payable to one member of family at a time uniform rate.
MEMBER PENSION
50% of Pay subject to a minimum of Rs. 500 / 600 / 800 depending on age as on 16.11.1995.
Proportionately higher pension beyond 33 years of Service – could go upto 60% of pay.
FAMILY PENSION
(i) Spouse –
(a) Equal to member’s entitlement or higher amount as per table C in case of member’s death before superannuation / retirement.
(b) For death after retirement, half the member’s pension.
(ii) Two Children – @ 25% of the monthly pension payable to spouse will be paid each of the two children separately (i.e. 25+ 25 = 50%) = 37.5% in total.
6. BENEFITS ADMISSIBLE ON LEAVING SERVICE OTHERWISE THAN RETIREMENT / DEATH :
Only Gratuity is payable. No pensionary benefits admissible.
Gratuity plus Pension if the pensionable service rendered is 10 years or more.
For service less than 10 years the member is eligible to a lump sum Withdrawal Benefit with reference to his last pay drawn and the years of service rendered or taking a Scheme Certificate which shall entitle for clubbing subsequent period of service, if any, and providing death risk coverage for Family Pension.
7. COMMUTATION OF PENSION Admissible up 40% of the basic
pension.
Admissible upto 1/3rd of the basic pension.
8. RETURN OF CAPITAL No such provision exists.
Capital return permissible on option formula basis upon cessation of members pension payment. Despite capital return, family pension benefit shall continue to be available.
9. ADJUSTMENT WITH COST OF LIVING INDEX
Dearness Relief based on the pension amount is added to the pension on increase in the cost of living index on declaration made by Government half yearly.
Based on annual valuation result, pension relief will be available as may be announced.
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSIONSCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971 EMPLOYEES’ PENSION SCHEME, 1995
I. MEMBER PENSION:
(1) No provision for pension payment to member:-
On Superannuation / retirement or Invalidation
(I) Pension is payable to a member :- On Superannuation / retirement on
attaining 58/50 years of age with 11 years contributory service or more [Para 12].
On invalidation while in service – no eligibility requirement – membership with one contribution is enough [Para 15].
II. FAMILY PENSION:
(2) Family Pension payable only in the event of death of the member while in reckonable service.No pension entitlement if death occurs otherwise [Para – 28].
(3) Pension entitlement on completion of minimum three months membership with contribution payment there against [Para 28].
(4) Pension entitlement to one person at a time either widow or in the event of death or remarriage of widow / widower, eldest child below the age of 25 years [Para 29].
(5) No provision for enhanced pension payment to orphan children upon death of the widow / widower or remarriage [Para 28].
Family Pension is payable in the event of death of the member under any situation; i.e. (i) whether death occurred while in service; or (ii) away from employment; or (iii) after retirement as a pensioner.[Para 16(1) & 16(2)(a)]
No eligibility requirement for Family Pension. Membership with one contribution is adequate [Para 16(1)].
Pension entitlement to three persons at a time, payable to widow / widower and two children below the age of 25 years simultaneously [Para 16].
Pension is payable at higher rate to orphan children upon cessation of widow pension payment on death / marriage [Para 16(4)(a)].
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSIONSCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971 EMPLOYEES’ PENSION SCHEME, 1995
(6) Only withdrawal benefit was permissible if the member died after leaving the job or otherwise not in reckonable service.
Benefit of pension to widow and two children below the age of 25 years admissible simultaneously in such cases [Para 16].
III. NOMINEE PENSION:
(7) No provision for pensionary entitlement to members unmarried or having no eligible family members to receive pension [Para 29].
(8) No provision permitting payment of pension to persons other than family members. A loss to members unmarried or otherwise having no family [Para 29].
Pension is payable to “Nominee” in respect of members unmarried or having no eligible family members to receive pension [Para 16(5)(a)].
Provision of pension payment to nominee exists for members who are unmarried or otherwise having no family members to receive pension. Pension entitlement equivalent to widow pension to nominee in such cases [Para 16(5(a)].
V. COMMUTATION PENSION:
(9) No provision allowing commutation of pension.
Commutation of pension permissible upto 1/3rd of the pension amount. 100 times of pension amount commuted will be admissible as lump-sum payment [Para 12(A)]
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSIONSCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971 EMPLOYEES’ PENSION SCHEME, 1995
VI. CAPITAL RETURN:
(10) No provision permitting capital return after cessation of pension payment.
Capital return is permissible on option formula basis after death of the member and / or cessation of pension payment to member [Para 13].
VI. CONTINUENCE OF MEMBERSHIP:
(11) No scope for retaining the membership on leaving the job and withdrawing Provident Fund and to continue family protection benefit [Para 6].
Membership can be retained after exit by obtaining Scheme Certificate and continue Family Protection benefit [Para 14 & Para 12(8)].
VII. WITHDRAWAL BENEFIT:
(12) Permissible on exit from job or cessation of membership on attaining 60 years of age [Para 32].
Permissible on exit before 10 years service and on grant of exemption to the Establishment [Para 14 & 39].
BENEFIT COMPARISON BETWEEN THE EMPLOYEES’ FAMILY PENSIONSCHEME, 1971 AND THE EMPLOYEES’ PENSION SCHEME, 1995
EMPLOYEES’ FAMILY PENSION SCHEME, 1971 EMPLOYEES’ PENSION SCHEME, 1995
VIII. BENEFIT AVAILABILITY TO UNORGANIZED SECTION:
Special provisions made to ensure benefit delivery
(13) Entitlement / eligibility criteria of “minimum 3 months membership” and “death while in reckonable service” mostly eluded the Pension benefit admissibility to casual workers, seasonal workers and workers engaged by or through contractors who generally work for short duration.
(i) Employees engaged seasonally in any establishment, the period of “actual service” in any year notwithstanding that such service is less than a year, shall be treated as full year [Para 9(a)].
(ii) Pensionable salary will be worked out “Notionally” for full month in the event of drawal of salary for a part of the month [Para 11(2)].
(iii) Pension entitlement to Family following death of the member irrespective of death occurring while in service, after date of exit from employment or after Superannuation and receiving pension [Para 16(1)].
(iv) Pensionary benefits shall be extended to the members without co-relating compliance by the employer of the establishment [Para 16A].
EMPLOYEES’ PENSION SCHEME, 1995SETTLEMENT / DISBURSEMENT PROCEDURE
All types of pension claims – viz – members pension on retirement / superannuation or disablement and family pension upon death of the member – to be made and filed with EPF authorities in Form-10 D Induplicate. If pension disbursement is sought from any place outside the region, then in triplicate.
Claim for withdrawal benefit or issue of Scheme Certificate – to be filled in Form 10-C.
Application in Form 10-C/10-D need be filed with the EPF authorities with whom the compliance has been made.
Application need be filed by the member through the employer normally. In case of non availability of the employer or otherwise difficulty in obtaining employers endorsement, the application can be filed with attestation from other authorised officials explaining the position.
Upon death of the member, spouse shall normally file the claim form for Family Pension benefit.
A consolidated Pension Payment Order (PPO) is being issued covering all types of pensionery benefits payable now as also in future for member/spouse/children/nominee or dependent parents including one time lump sum payment for commutation / capital return along with relevant regulatory instructions. This facilitates continuous benefit payment by the disbursing agency subject to input requirement and obviates the difficulties in approaching EPF authorities again and again seeking requisite direction. PPO issued shall be final.
Periodical additions by way of “Pension Relief” allowed, if any, will be added through the disbursing arrangement automatically without requiring any action from the beneficiary.
Disbursement of pension is being made by providing credit to beneficiaries pension payment account every month by a fixed date. Arrangement exists with banks and post offices across the country on area basis in this regard. Details in respect of disbursing points available need be obtained from the office from where pension disbursement is sought for.
EMPLOYEES’ PENSION SCHEME, 1995SETTLEMENT / DISBURSEMENT PROCEDURE
EMPLOYEES’ PENSION SCHEME, 1995SETTLEMENT / DISBURSEMENT PROCEDURE
Pension payment account will be beneficiary wise to be operated as savings bank account. No joint arrangement is permissible.
Pension claim application in Form 10-D need accompany applicants and / or other Beneficiary’s Verification Scroll in the prescribed format made available with Form 10 D. Verification Scroll need be in respect of each beneficiary separately accompanied with photograph and personal identification mark.
Member while applying for retirement / superannuation pension need furnish three passport size photograph of the member and his / her spouse with attestation on reverse side of the photograph. Birth Certificate / Age Proof document in respect of children below 25 years of age need also be furnished.
Spouse while applying for family pension need furnish death certificate of the member, certified family members details and birth certificate of the children along with their photograph for claiming children pension.
Upon members obtaining PPO on retirement, children’s birth certificate, verification scroll and photograph will be required to be filed with the disbursing agency while claiming children pension after death of the member.
Each year in the month of Nonmember, every pensioner need file with the disbursing agency “Life Certificate” and “Non Remarriage Certificate” in case of spouse, in the prescribed format. Failure in this regard shall stop pension payment from January next year.
Beneficiary need report every relevant information promptly to the EPF / Disbursing Agency for regulating pension payment in the prescribed manner.
EMPLOYEES’ PENSION SCHEME, 1995SETTLEMENT / DISBURSEMENT PROCEDURE
THANK YOU
THE EMPLOYEES DEPOSIT LINKED INSURANCE
SCHEME, 1976
INDEX
THE EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME, 1976
Sec. 6C of the Employees Provident Fund & Misc. Provisions Act, 1952, [as amended vide Act ’99 of 1976], provides for and empowers the Central Government to frame & notify a Scheme for the purpose of providing Life Insurance benefits to the employees of the establishments to which this act applies.
The Central Government notified the Employees Deposit Linked Insurance Scheme, 1976 effective from 1st August, 1976.
The Scheme applies to the employees of all the establishments covered under the EPF & MP Act, 1952, who have been enrolled to the membership of Employees Provident Fund Scheme, 1952, or any other Provident Fund Scheme which has been exempted under Sec. 17 of the act or paragraph 27/27A of the scheme thereunder.
THE EMPLOYEES DEPOSITLINKED INSURANCE SCHEME, 1976
The scheme is financed with the contribution from the employer of the establishment @ 0.50% of the wages of the employees. Until 15.11.1995, the Central Government also used to contribute to the fund @ 0.25% of the wages. The employees are not required to make any contribution.
The Scheme provides for payment of assurance benefit, upon death of the member while in service; linked to the average balance in the provident fund account of the deceased member.
The assurance benefit shall be payable to the person entitled to receive provident fund
accumulation of the deceased member.
INDEX
THE EMPLOYEES DEPOSITLINKED INSURANCE SCHEME, 1976
Scale of benefit payable under the scheme shall be as under :-
Death cases occurring during the period
Quantum of benefit payable
1. August 1976 to February 1990
Equal to the average balance in Provident Fund a/c of the member subject to maximum Rs. 10,000.
2. March 1990 to March 1993
Equal to the average balance in Provident Fund a/c of the member subject to maximum Rs. 25,000.
3. April 1993 to June 2000
Equal to the average balance upto Rs. 25,000 in the Provident Fund a/c of the member plus 25% of the remaining balance, if any, subject to Rs. 35,000 maximum.
4. July 2000 onwards
Equal to the average balance upto Rs. 35,000 plus 25% of the balance amount, if any, subject to Rs. 60,000 maximum.
INDEX
THANK YOU
SOCIAL SECURITY – GLOBAL PERSPECTIVE
INDEX
Social Security – General Concept
“The protection which society provides for its members through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, unemployment, invalidity, old-age and death; the provision of medical care; and the provision of subsidies for families with children.”
The need for institutionalized social security has arisen mainly as a result of industrialization and urbanization. Weakening of the extended family system which used to provide informal economic and social support on a family basis is one cause. Another cause is the decline of kinship and group help availability in communities and villages.
INDEX
SOCIAL SECURITYDevelopment Background
“Social Security” has been recognized as a basic human need.
Origin of “Social Security” could be linked with human civilization.
Social Security need used to be taken care of informally by the family / community setup in earlier days.
Need for formal and institutionalized social security has arisen with the growth of Urbanization / Industrialization causing erosion in family / community setup and decline in kinship.
Current trend towards market economy resulting liberalization / globalization has aggravated the position further.
INDEX
SOCIAL SECURITY – GENERAL UNDERSTANDING
“Everyone as a member of Society, has the right to social security and is entitled to realization through national effort and international cooperation and in accordance with the organization and resources of each state of the economic social and cultural rights in dispensable for his dignity and the free development of his personality”.
[Article 22 of the universal Declaration of Human Rights] “Public Assistance is a sacred duty. Society owes subsistence to
unfortunate citizens either by procuring them work or by ensuring those who are unable to work the means of existence”.[Right to Social Security serving as the preamble to the French constitution of 1793]
“Any kind of collective measures or activities designed to ensure that members of society meet their basic needs (such as adequate nutrition, shelter, health care and clean water supply), as well as being protected from contingencies (such as illness, disability, death, unemployment and old age) to enable them to maintain a standard of living consistent with social norms”.
[Mr. I. P. Gtubiq] “The basic idea of social security is to use social means to
prevent deprivation and vulnerability to deprivation”.[Dr. Amartya Sen & Jean Dreza]
“Social Security must aim at the maintenance of the level and quality of life and at the strengthening of individual feeling of security”.
[Mr. Francies Blanchand, Ex. Dea, ILO]
INDEX
OBJECTIVES OF SOCIAL PROTECTION SYSTEM
Availability of income maintenance benefits
Provision of basic universally available services
Creation of an environment for development of additional voluntary retirement income and access to private health services
OBJECTIVES
Long-term permanent disability
CONVENTION NO. 102
Temporary
disabilitySurvivors
Medical care
Employment injury benefits
Sickness
Maternity
Unemployment benefits
Old-age
Survivors
Invalidity
Pensions
Long-term benefits
Short-term benefits
Family allowanc
es
INDEX
SOCIAL SECURITY BENEFITS – STANDARD RANGE AND FORM
I.L.O. convention No. 102 identified as a standard measure the following as common social security need coverage parameters.
S.No. Benefit Type Classification in general
1. Old age benefit - Long-term benefits.2. Invalidely benefit - -do-3. Survivors’ benefit - -do-4. Family benefit - -do-5. Sickness benefit - Short term benefits.6. Maternity benefit - -do-7. Medical care benefit - -do-8. Un-employment benefit - -do-9. Employment injury - Common – could be either
benefit short term or long term depending on
situational extent.
INDEX
SOCIAL SECURITY – CONCEPT-CUM-FINANCING CLASSIFICATION
Concept Type Financing & benefit delivery pattern
1. Social Assistance Scheme - Generally non-Contributory- Financed by the State from
general revenues or Social institutions from common fund
- Provides subsistence support2. Social Insurance Scheme - Contributory financing
- Contributed jointly by State/ Employer/Beneficiary
- Operated on collectively concept
- Provides need based financial report3. Deposit linked Annuity - General contributory
Scheme - Provides deposit linked financial report4. Provident Fund Scheme - Contributory in nature
- Provides deposit linked payment in lump sum
- No risk coverage
INDEX
METHODS OF PROTECTION (I)
Their common objective is to guaranteethe elderly the security to which they aspire
during the later part of their lives
Provident funds
Universal benefit schemes
Social insurance schemes
INDEX
SOCIAL INSURANCE SCHEMES
UNIVERSALBENEFIT SCHEMES
PROVIDENTFUNDS
EmployerWorker
With or without a subsidy from the state
The state finances through taxation a system of uniform benefits
Employer and worker contribution administered by the state
Compulsory for employed persons
All residents Compulsory for employed persons
Determined by:The beneficiary’s
professional career
The beneficiary’s earnings through his/her working life
Pension is paid without means testing
Full or partial pension on a universal or means-tested basis
Pay a lump sum to beneficiary who has reached a stipulated age and fulfills certain conditions
METHODS OF PROTECTION (II)
FINANCED BY
MEMBERSHIP
PENSION ENTITLEMENT AND PENSION
AMOUNT
METHODS OF SOCIAL PROTECTION PROVISION
SOCIALINSURANCE UNIVERSAL
EMPLOYER LIABILITY
SOCIALASSISTANCE
NATIONAL PROVIDENT
FUND
Financed by contributions
Financed from taxation
Financed directly by employer
Financed from taxation
Financed by contribution
Pooling of risks and finances
Redistributive Individual employer provision
Redistributive Individual account
Benefits prescribed in
law
Flat-rate benefits
Discretionary benefits
Contribution prescribed in
law
Based on contribution history from employment
Based on residence
Based on needBased on
employment
INTERNATIONAL PERSPECTIVE – CLASSIFICATION OF SOCIAL SECURITY SCHEMES PREVALENT IN 173 COUNTRIES
Contributory Flat Rate Benefit Scheme – 19 countries
Contributory Earnings Related Pension Schemes – 139 countries
Provident Fund Schemes – 18 countries
Non-Contributory Means – Tested SocialAssistance Schemes – 25 countries
Flat Rated Universal Social Assistance Schemes – 5 countries
Mandatory Private Pension Schemes – 4 countries
Mandatory Personal Savings Private Schemes – 8 countries
No Old Age, Disabled and Death Programme – 6 countries
There are countries having both social insurance and social assistance schemes or provident fund and social insurance schemes. 167 countries out of 173 have in some form or other, schemes for old age, disability and survivor benefits.
GROWTH OF NATIONAL PROVIDENT FUNDS – GLOBAL VIEWS.NO. COUNTRY YEAR OF INTRODUCTION
1. MALAYSIA 1951
2. INDONESIA 1951
3. INDIA 1952
4. SINGAPORE 1953
5. SRILANKA 1958
6. NEPAL 1962
7. TANZANIA 1964
8. KENYA 1965
9. ZAMBIA 1965
10. FIJI 1966
11. UGANDA 1967
12. SAMOA 1972
13. SOLOMON ISLANDS 1973
14. SWAZILAND 1974
15. KIRIBATI 1976
16. TUVALU 1979
17. PAPUA NEW GUINEA 1980
18. GAMBIA 1981
19. VANUATU 1986
20. YEMEN 1987
GROWTH OF NATIONAL PROVIDENT FUNDS – GLOBAL VIEWTermination / Convertion from National Provident Fund System
S.NO. COUNTRY COMMENCED/TERMINATED
REPLACEMENT
1. EGYPT 1955 / 1959 Social InsurancePension Scheme
2. IRAQ 1956 / 1971 -DO-
3. THAILAND ENACTED / NOT IMPLEMENTED
4. NIGERIA 1961 / 1994 -DO-
5. GHANA 1965 / 1991 -DO-
6. ST. KITTS & NERIS 1968 / 1977 -DO-
7. GRENADA 1969 / 1983 -DO-
8. ST. LUCIA 1970 / 1978 -DO-
9. ANTIGUA 1970 / 1972 -DO-
10. SEYCHELLES 1971 / 1979 -DO-
11. DOMINICA 1971 / 1975 -DO-
12. ST. VINCENT & GRENDADINES
1972 / 1986 -DO-
13. MONTSERRAT 1972 / 1986 -DO-
INDEX
SOCIAL SECURITY – INDIAN CONTEXT
INDEX
SOCIAL SECURITY – INDIAN CONTEXT– DEVELOPMENT BACKGROUND
In India, there has been no statutory requirement for providing economic support during old age or becoming invalid during pre-independence era until 1947, except, The Workmens’ Compensation Act, 1923 providing for work injury compensation. So also the survivorship coverage health care etc. were lacking.
After independence, the Government of India in keeping with the directive principles of State Policy enacted various laws and measures in safe guarding the welfare of the people, and securing assistance in cases of old age, sickness, disablement and other cases of underserved want.
INDEX
SOCIAL SECURITY– INDIAN CONTEXT
The State shall in particular, direct its policy towards securing –
(a) that the citizens both men and women equally have the right to an adequate means of livelihood;
(b) that the ownership and control of the material resources of the community are so distributed as best to sub-serve the common good; and
The State shall, within the limits of its economic capacity and development, make effective provisions for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.
INDEX
SOCIAL SECURITY – INDIAN CONTEXTProminent legislations enacted by Government of India for safeguarding welfare/social security in general could be named as under:-
1. Workmen’s Compensation Act, 1923.2. Coal Mines Provident Fund & Miscellaneous Provisions Act, 1948.3. Employees State Insurance Act, 1948.4. Employees Provident Fund & Miscellaneous Provisions Act, 1952.5. Maternity Benefit Act, 1961.6. Seamen’s Provident Fund Act, 1966.7. Payment of Gratuity Act, 1972.8. Beedi Workers Welfare cess / Fund Act, 1976.9. Iron / Manganese / Chrome ore mines labour welfare cess / Fund Act, 1981.10. Cine Workers Welfare cess / fund Act, 1981.11. Dock Workers (Safety, Health and Welfare) Act, 1986.
12. Building and other construction workers welfare cess Act, 1996.13. Unorganized workers Social Security Act, 2008
Government has also initiated measures in instituting various assistance schemes to take care of needy and weaker sections of population.
COVERAGE UNDER INSTITUTIONALIZEDPROVIDENT FUND SYSTEM IN INDIA
Non-Contributory Schemes
Contributory Provident Fund Schemes
MembersMembers
Central GovernmentCentral Government 41.76 lakhs (4.176 Million)41.76 lakhs (4.176 Million)
State GovernmentState Government 68.00 lakhs (6.8 Million)68.00 lakhs (6.8 Million)
Union Territory EmployeesUnion Territory Employees 01.63 lakhs (0.163 Million)01.63 lakhs (0.163 Million)
TotalTotal 111.39 lakhs (11.139 Million)111.39 lakhs (11.139 Million)
MembersMembers
Employee’s Provident FundEmployee’s Provident Fund 214.48 lakhs (21.448 Million)214.48 lakhs (21.448 Million)
Coal Mines Provident FundCoal Mines Provident Fund 8.06 lakhs (0.806 Million)8.06 lakhs (0.806 Million)
Assam Tea Plantations Provident Assam Tea Plantations Provident FundFund
7.56 lakhs (0.75 Million)7.56 lakhs (0.75 Million)
Seamen’s Provident FundSeamen’s Provident Fund 0.33 lakhs (0.03 Million)0.33 lakhs (0.03 Million)
Jammu & Kashmir Provident FundJammu & Kashmir Provident Fund 1.45 lakhs (0.145 Million)1.45 lakhs (0.145 Million)
TotalTotal 231.88 lakhs (23.188 Million)231.88 lakhs (23.188 Million)
INDEX
INDUSTRIAL SCENARIO – WORKING CLASS PROFILE
Total Population (1991) 837 million Organized Sector 9.4%Labour Force (1991) 314 million Un-Organized 90.6%
Distribution of worker Distribution of workers by industry-wise category of Employment
Agriculture 63.90% Self Employment 53.6%Manufacturing 11.13% Regular Salaried 15.2%Community, Social and Employment CasualPersonal Service 08.80% Wage Employment31.2%Trade 07.30%Construction 03.96%Transport 02.78%Financing, Real Estate,Insurance & BusinessService 00.63%Mining & Quarrying 00.77%Electricity, Gas andWater Supply 00.34%Others 00.61%
INDEX
AGE DISTRIBUTION OF POPULATION INDEX
Age Group(in million)
1996 2001 2006 2010 2013 2016
0–4 119.5 108.5 113.5 119.7 120.8 122.8
5–14 233.2 239.1 221.2 215.5 220.0 227.6
15–19 90.7 109.0 122.4 117.4 110.1 104.9
20–24 82.1 90.2 108.5 120.8 120.9 114.6
25–34 141.9 156.6 170.6 190.8 210.7 228.6
35–44 104.8 121.6 139.0 151.0 158.6 167.6
45–54 73.3 85.7 100.2 113.1 123.3 133.7
55–59 26.4 31.1 36.9 41.5 45.8 50.8
60 & above 62.3 70.6 81.8 92.5 101.4 112.9
934.2 1012.4 1094.1 1162.3 1211.6 1263.6
[Source: Statistical outline of India: Tata Services Ltd.]
SOURCE STATISTICAL OUTLINE OF INDIA:TATA SERVICES LTD.
Important Statistical : National Scenario: Year 1999-2000 Position
Total Population : 980 millionUrban Population : 32%Life expectancy : 63 yearsLabour force : 423 millionBelow poverty line : 35%Per capita income: Rs. 15,038 p.a.Organized sectoremployment : 28.2 million (2.95%)(1997-98 position)
INDEX
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