WELCOME YOU ALL TO THE SENSITAISATION PROGRAMME ON EPF ACT, 1952

1. WELCOME YOU ALL TO THE SENSITAISATION PROGRAMME ON EPF ACT, 1952

2. We shall be thankful if you could kindly switch off your mobile phones or put it in silent mode

3. SOCIAL SECURITY TO THE WORKING CLASS & TO THEIR FAMILIES. EPF ACT :GOALS

4. ADVANTAGES To the working class - Economic Security To the Employers - A steady and content workforce. To the Nation - Resources for its development programs.

5. Schemes Under EPF Act

6. OBJECTIVES OF EACH SCHEME

7. ADMINISTRATION ( Sec. 5A)

8. APPLICABILITY/ COVERAGE Applies to: All scheduled industries If 20 or more persons All notified establishments are employed • Special Power :- The Central Government after giving two months notice can apply to any establishments employing less than 20 employees Sec. 1 (3)

9. ADDITIONS TO SCHEDULE 1 • Central Government by notification can add any other industry Sec 4

10. Special Power The Central Government, after giving two months notice can apply the Act to any establishment employing less than 20 employees Sec. 1 (3)

11. EXCEPTIONS • Any establishment under Central/State Govt. if the employees are entitled to C.P.F or old age pension • A Co-operative society: If no power is used and the employment strength is less than 50. Sec -16

12. ESTABLISHMENT TO INCLUDE • All branches and departments whether situated in same place or in different place. Sec. 2 (A)

13. FACTORY MEANS:- • Any premises where in :- a manufacturing process is carried over with or without the aid of power • Sec.2 (g)

14. VOLUNTARY COVERAGE • If the employer and majority of the employees agree Sec. 1(4)

15. “Once Covered – Covered for ever”

16. EMPLOYEE WHO IS ? • Any person employed for wages • In any kind of work • In or in connection with the work • Wages paid directly or indirectly • By or through a contractor • An apprentice Sec. 2 (f)

17. EXCLUDED EMPLOYEE • Who withdrew the full amount • on retirement after the age of 55 • Immediately before migration from India. • Whose pay exceeds Rs. 15,000/- (W.e.f. 01/09/2014) • An apprentice as per Standing Orders or Apprentice Act. • No exemption to the retired Govt. employees receiving pension Para 2 (f)

18. Voluntary Coverage of an Excluded Employee Though an employee is employed for a pay exceeding Rs. 15,000/- he can also be a member if the employer agrees

19. Employee once covered covered for ever Even if the pay exceeds the limit of Rs.15,000/- he will continued to be covered But contribution in excess of the limit is optional

20. WHO IS AN EMPLOYER ? • For a Factory:- • Owner or occupier including their agent • The legal representative of the deceased owner/occupier • Manager • For an establishment:- • The person who has the ultimate control over the affairs of the establishment • Manager, Managing Director or their agent if the affairs are entrusted to them

21. RATES OF CONTRIBUTION 12% of Basic wages+ D.A • ( including cash value of any food concession) • + retaining allowance 10% if • The employment strength is less than twenty • If the establishment is a sick industrial Company • If the losses exceeds the assets of the establishment • Jute , Beedi, Coir, Bricks, Gum manufacturing units

22. CONTRIBUTION IN EXCESS OF STATUTORY MINIMUM Both employer and employee are at liberty to contribute at a higher rate or on the pay in excess of the wage ceiling of Rs. 15,000/- But no compulsion for employer.

23. WHAT IS“PAY” Para. 2 (f)

24. BASIC WAGES • All emoluments earned while on duty or on leave or on holidays • Paid or payable in cash • Not includes :- • D.A • HRA • OT allowance • Bonus • Commission and similar allowances • Cash value of food concession • Presents Sec. 2(b)

25. RATES & APPORTIONMENT OF CONTRIBUTION

26. PAYMENT OF CONTRIBUTION • Due Date :- 15th of every month • Removed grace period of 5 days w.e.f. February 2016 • Mode of payment:- internet banking w.e.f.1-1-2016 Para 38

27. RETURNS

28. RECORDS TO BE MAINTAINED Contribution Cards :- Form 3 A – Para 35 Inspection Book- Para 36 (4) Accounts of Contribution paid – Para 36 (5)

29. Employer not to reduce wages • No employer by reason of his liability under the Act reduce • Wages • Pension • Gratuity etc. • Entitled as per the terms of employment

30. OBLIGATIONS OF A CONTRACTOR • To submit statement of recoveries of contribution • Other particulars required to be furnished by the Principal employer to the EPF Authorities

31. RECOVERY OF DUES BY THE PRINCIPAL EMPLOYER FROM THE CONTRACTOR can be done by deduction from the amounts payable to the contractor or as debt payable by the contractor

32. OTHER OBLIGATIONS OF AN EMPLOYER Form 11 KYC updation- Aaadhar, Bank Account etc. Registration of the establishment Allotment of account numbers to members Permit members to inspect their contribution cards Distribution of annual statements to members Attestation and forwarding of their claims for withdrawal / transfer of funds- Using Composite Claim Forms To comply with the general directives

33. PROTECTION AGAINST ATTACHMENT The amount in the credit of a member in the EPF account shall not be liable to be attached by any order of court of law

34. Powers of Inspectors Enter to an establishment and require an employer or contractor to furnish the necessary informations Search any establishment Require to produce any books of accounts and documents Examination of employer, his agent and employees Seizure of records/documents

35. 7 A PROCEEDINGS • On a dispute as to the applicability of the Act or determination of amount due by an employer • Authority has the power of a Civil Court • An order of assessment can be re-opened by the Authority with in a period of 5 years if found that his assessment was not for the full amount actually due

36. RESOLUTION OF DOUBTS Dispute on the applicability of the Act to an employee Commissioner to decide After hearing employer and employee Para 26(b)

37. COERSIVE/PENAL ACTIONS • Assessment of dues Sec.7(A) • Recovery actions Sec.8(b) to 8 (g) By arrest and detention of the defaulter Attachment and sale of properties • Issue of Garnishee Orders • Interest 12% • Damages 25% • Execution of bond before Executive Magistrate • Imprisonment upto 3 years with fine Rs.5000 ,for non payment of contribution • Imprisonment upto 1 year and fine RS. 5000 for other offences

38. JUDICIAL AND NON JUDICIAL REMEDIES • Review Power Sec.7(b) • Time Limit 45 days • Appeal to Appellate tribunal • Time Limit 60 days • 75% of the disputed amount to be deposited

39. CLUBBED COVERAGE • Two or more units can be clubbed for coverage • If conditions satisfied

40. JOINT LIABILITY OF EMPLOYERS • ON TRANSFER OF AN ESTABLISHMENT • TRANSFERER AND TRANSFEREE SHALL JOINTLY LIABLE • FOR THE DUES UPTO TO THE DATE OF TRANSFER.

41. EPFORECENT INITIATIVES

42. Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) • Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) • Government to bear 8.33% of EPS Contribution for new employment • for a period of three years. • Textile sector Establishments eligible to get 3.67% of EPF Contribution • Registration on PMRPY portal mandatory to avail benefits • Schemes have come into force on 09-08-2016. • PMRPY link: www.epfindia.gov.in>>Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

43. ESTABLISHMENT • All Establishments registered under EPFO are eligible for benefits. • Establishments should have LIN. • Valid organisational PAN. • Valid Bank Account. • the ECR of the relevant month should be more than the employment strength of the Reference Base. - deleted • Establishment to upload certain data in the PMRPY Portal on or before 10th of every month. • Establishments shall be fully responsible for the information uploaded.

44. EMPLOYEE • Employee should have a valid Aadhaar linked UAN • Earning wages less than Rs. 15,000/- per month. • Not worked in any establishment registered with EPO. • Did not have a UAN prior to 01-04-2016

45. EPFO HOUSING SCHEME FOR PF MEMBERS • To facilitate housing needs of EPF Members • Insertion of new provision - Para 68-BD in EPF Scheme,1952 • Applicable from 12th April 2017 - Date of Notification • EPF Member can apply for withdrawal upto 90 % PF accumulations in PF Account • Withdrawal allowed only once

46. HOUSING SCHEME- REQUIRED • Required - PF Membership of 3 years • Required - Minimum PF balance of Rs. 20,000 individually or including that of spouse who is also a member of Fund • Required - Membership of a registered society having 10 or more EPF members

47. HOUSING SCHEME- SALIENT FEATURES • Applicable for - Purchasing dwelling houses I flats; Construction of dwelling houses including acquisition of a suitable site • Purchased from - Government, Any Housing Agency under any housing scheme or any promoter I builder • Member can apply individually I jointly through housing society in the prescribed format to the Commissioner • Commissioner to issue certificate specifying balance in provident fund accounts along with monthly contribution during last 3 months

48. HOUSING SCHEME- SALIENT FEATURES • Alternatively PF members can get print out of their epassbooks from EPFO website • Payment directly to agency • EPFO - Not to recommend or associate in the agreement with any builder I promoter I housing agency I society • EPFO to assist members not having repayment capacity • In addition to lump sum withdrawal, members can opt full Ipart repayment of loans out of monthly PF contributions • Provision of Equated Monthly Installments (EMI) facility for repayment of loans to EPF members

49. HOUSING SCHEME- SALIENT FEATURES • Banks I lending institutions can make use of certificate issued by commissioner containing PF contribution details to arrive EMI for withdrawal under para 68 BD (3) of EPF Scheme • Composite claim forms can be used by members for availing above facility • Letter of authorization cum undertaking to be given by member for EMI payment out of PF contributions • Facility of Pradhan Mantri Awas Vojna (PMAY) • For members whose annual income is less than amount specified in PMAY and do not own house in the name of any family member anywhere in India

50. HOUSING SCHEME- SALIENT FEATURES • Can avail interest subsidy upto Rs 2.20 lakhs in Credit Linked Subsidy Scheme (CLSS) • This subsidy is disbursed by Ministry of Housing & Urban Poverty Alleviation (MoHUPA), Govt. of India through its nodal agency HUDCO and National Housing bank • Details available in www.mhupa.gov.in • For availing subsidy, member may get loan from public I private sector banks, cooperative banks and housing finance companies • Details available at http://mhupa.gov.in/writereaddata/ewslig- • pli.pdf and http://mhupa.gov.in/writereaddata/mig-pli.pdf • HUDCO to facilitate implementation of scheme jointly with EPFO through its various field offices