EMPLOYEES PROVIDENT FUNDS AND MISC. PROVISIONS ACT 1952

1. EMPLOYEES PROVIDENT FUNDS AND MISC. PROVISIONS ACT 1952

2. Introduction SCHEMES UNDER THE ACT. • EMPLOYEES PROVIDENT FUNDS SCHEME, 1952 • EMPLOYEES DEPOSIT LINKED INSURANCE SHEME, 1976 • EMPLOYEES PENSION SCHEME, 1995

3. PF SCHEME APPLICATION: • To every establishment employing 20 or more employees. Wages: • basic wages • dearness allowance and • retaining allowance, if any

4. PF SCHEME CONTRIBUTIONS: • EMPLOYEES @ 12% • EMPLOYER @ 12% FAMILY: • In case of Male: wife, children, dependent parents and deceased sons widow and children • In case of Female: Husband, children, dependent parents and hus dep. Parents and deceased sons widow and children

5. PF SCHEME COVERAGE: • From day one joining in employment POWER TO EXEMPT • Trust Maintenance by Trustees of Orgn. TRANSFER OF ACCOUNTS: • On Re-employment from Exempted establishment to Un-exempted and visa-versa.

6. PF SCHEME RATE OF INTREST: • 9.5 % P.A. VOLUNTARY CONTRIBUTION: • In multiples of Hundreds (Max. limit of one month basic+da) DECLARATION & NOMINATION • FORM 2 • Distribution of amount • Fresh nomination on attaining family.

7. PF SCHEME WITHDRAWALS: • For purchase of a dwelling house/flat or for construction of house including purchase of site • Min. Criteria: 5 years of Contributory period. • Incase of Construction: 24 months/employers & employee share together with interest or actual cost of const. Whichever is lower

8. PF SCHEME WITHDRAWALS: • Incase of acquisition of ready built house/flat: 36 months contributions/employers & employee share together with interest or actual cost of construction whichever is lower • No withdrawal is allowed if it is for joint family except jointly with spouse.

9. PF SCHEME WITHDRWALS • Grant of Advances in special cases • incase factory is locked up or closed down for more than 2 months • Advance for illness • Hospitalization is lasting for more than one month or major surgical operation or suffering from TB/ Leprosy etc.

10. PF SCHEME WITHDRWALS • Grant of Advances for Marriages or post matriculation edu of children ( 15% of own share) • Incase of own marriage or son/daughter/ sister/ brother or for post matriculation study of children. • Min criteria: 7 years of contributory period. • Grant of adv. In abnormal conditions • Movable /Immovable property has been damaged by nature calamity.

11. PF SCHEME WITHDRWALS • Withdrawal which one year before retirement • 90% of amount standing in his account. • Circumstances which lead to payable to a member • On retirement • On retirement on account of perm disablement • Immediately before migration • On Retrenchment.

12. EDLI SCHEME Obj: For providing life insurance benefits to the employees. Contributions: • Employer and Govt will contribute @ 0.5% of wages. (Max wage limit is Rs. 6500/-) Benefit: • Equivalent to fund accumulations or 12 months average bal or 25000. + 25 % of excess of 25000 with limit of RS. 35000/-

13. EPS SCHEME COMMENCEMENT OF SCHEME: • w.e.f 16/11/1995 OBJECTIVE: For purpose of providing for • Superannuation pension • Retiring Pension • permanent total disablement pension • widow or widower’s pension • children pension/orphan pension

14. EPS SCHEME ELIGIBILITY FOR PENSION: • An employee who completed min 10 years membership. • Employees attaining age of 58 yrs and who completed 10 yrs. • On attaining 58 yrs of age, the employers contr. Will go to PF account, if he/she continues in emp. • In case of death, spouse and two children upto age of 25 yrs are eligible for pension.

15. EPS SCHEME CONTRIBUTIONS: • 8.33% of employers contribution be diverted • 1.16% of Govt Contribution (max wage: Rs.6500) Pensionable Service: • Contributions received or receivable • Service Weight-age of 2 yrs incase of 20 years or more pensionable service.

16. EPS SCHEME PENSIONABE SALARY: • Avg. of 12 months salary • Non contributory days be excluded • Max wage limit is RS. 6500/- Monthly Pension: • Retirement Pension: 20 yrs or more of service on attaining 58 yrs. • Short Service Pension: 10 -20 yrs service.

17. EPS SCHEME Monthly Pension formula: Pensionable serviceX Pensionable salary/70 Options : (Return of Capital) • 90% of pension- nominee will get 100 times as lumpsum on death of member • 90% of pension- widow will receive 80% of original pension and 90 times of original pension • 87.5% of pension for fixed 20 yeas. 100 times at end of 20 yrs if he alive or to nominee if not alive

18. EPS SCHEME WITHDRAWALS: • Employees who put in less than 10 yrs service are eligible incase not employed elsewhere. • employee has option to obtain “Scheme Certificate” instead of withdrawal PENSION AT AN EARLY DATE: (@ 3% less for every year of short fall of 58 yrs.) • Emp who put in 10 yrs service and ceased to be in employment may opt from 50 yrs of age.

19. EPS SCHEME FORMS: • FORM 2: To be used for furnishing Nominee Details. • FORM 10C: To be used for claiming Withdrawal Benefits • FORM 10D: To be used for claiming Monthly Pension

20. EPS SCHEME DO’S FOR MEMBERS: • Instructions should be gone through before filling the forms. • Bank Details to be furnished correctly • Forms be attested by Employer • Claims should be sent to concerned RPF Office • Claims/Clarifications routed thr Ex-Employer

21. EPS SCHEME DON’TS FOR MEMBERS: • Do not close Bank Account • Don’t approach any middle/consultant for settlement of claim. • Don’t contact any other official other than PRO • Don’t hand over claim form to any un-authorised person.

22. Thank You

23. badari narayana [ybadarinarayana@yahoo.com] • Dear Rajeev, • Pls find them here under. • These were prepared some time back...It may need some • updation.. like latest amendment in ESI Act enhancing • wage ceiling from Rs.6500 to Rs. 7500 pm • Pls note my official mail id also: • badari.naayana@wepindia.com • regards • Badarinarayana