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The Employee Provident

Fund & MiscellaneousProvision Act,1952

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Topics Covered

Definition/Objectives

Coverage

Schemes

On Joining

PF Contribution

Interest

Prescribed Investment Pattern of PF Trust

Withdrawal Benefits of the Act

Challans & Return

Conclusion

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DEFINITION/OBJECTIVES

Compulsory contributory fund for the future of

the employee after his retirement or for hisdependents in case of early death.

Equal Contributions by employer and employee

are made at specifies rate.

On Retirement , an accumulated sum is payablein lump sum with interest.

Three Funds have been created for the above:#Provident Fund

#Pension Fund

#Deposit Linked Insurance Fund

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COVERAGEAll establishments employing 20 or more persons

are covered under this act.Cooperative societies employing 50 or more

persons.

Contractors Employees are covered.

Apprentice & Trainees are not covered under this

act.

This Act does not apply to a newly set up

establishments for an initial period of 3 years fromthe date on which such establishments is or has

been set up.

Once Covered, continues to be covered.

PF Act is applicable in every state except J&K

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SCHEMES

The following three schemes have beenframed under EPF & MP Act, 1952

The Employee Provident Fund Scheme,1952

Employee Pension Scheme,1995

Employees Deposit Linked Insurance

Scheme,1976

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ON JOINING

Form no. 2 giving details of nominees incase of death is to be filled.

Transfer form no. 13 is to be filled in caseemployee had been working before also.

Withdrawal form no. 19, when hewithdraws his PF

Allotment of PF no. by the employer.

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PF CONTRIBUTION

PF is deducted on Basic Salary. If employeesbasic is less than or equals to Rs. 6500, he will

be covered in PF.

Statutory rate of contribution is 12% of :

-Basic wage

-Dearness Allowance

-Cash value of food concession &

-Retaining Allowance

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Contribution shall be 10 % in case of:-

Brick ,Beedi ,Jute, Guar Gum Factories,

Coir Industry other than spinning sector.

Establishments declared as sick

undertakings by Board for Industrial &

Financial Restructuring(BIFR).

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Two parties contribute under the PF Act.

1. The Employee

12 % of Basic Pay goes to PF

2. The Employer

3.67 % of Basic Pay to PF

8.33 % of Basic Pay to EPS

1.61% of Basic Pay to Admin Charges.

Admin ChargesADMIN Charges

PF Admin1.1%

EDLI.5%

EDLI Admin.01%

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INTEREST

FROM FY 2012 the rate of interest on EPF

IS 8.8 P.A

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Investment Pattern prescribedfor Provident Fund Trusts

25%

15%

30%

30%

Central Govt

State Govt.

PSU

Flexible

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WITHDRAWL

A member may completely withdraw theamount that has accrued in his PF if:-

He retires at the age of retirement(presently60).

He retires because of permanent and total

disablement.

He immigrates or takes up employment abroad.

His services are terminated because of

retrenchment

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BENEFITS OF THE ACT

To provide Monetary benefits to surviveafter retirement.

To minimize risk against health, sickness,

disablement of the employee and hisdependents.

Old age Pension benefits.

Widow pension.To maintain dignity & Social status.

One can avail refundable advances & non

refundable advances

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CHALLANS & RETURNS PF challans are submitted on 15th of every month in SBI, 5

days grace period is given to submit challans. PF Returns are submitted twice a year

PF RETURNS

Form 5 is used to submit pf monthly return in which newemployee details is mentioned.

Form 10 is used to submit pf monthly return in which leftemployee details is mentioned.

Form 12A that is used for the same purpose which containsconsolidated details of that particular month-new joinees,leftemployees & employees/employer pf contribution.

Form 3A is used for pf annual return.

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CONCLUSION

PF is an effective old age &survivorship benefit, which along with

the Family Pension Fund & thecompulsory Life Insurance Benefit,aims at providing long term financial

security to the families of IndustrialEmployees in the event of their deathbefore reaching the age ofsuperannuation.

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THANKS