employee pf & mp

8/6/2019 Employee PF & MP

1/18

EMPLOYEES PROVIDENT FUNDSA ND MISCELLA NEOUS

PROVISIONS A CT, 1952


2/18

SCHEMES FRA MED UNDER THI S ACT

1. The Employees Provident Fund Schemes, 1952

2. The Employees Pension Scheme, 1995

3. The Employees Deposit-Linked Insurance Scheme;1976


3/18

OBJECTIVE

To provide institution of Provident Fund for workers inspecified industries

SCOPE

To employees drawing pay not exceeding Rs. 6,500/- permonth

APPLICATION

The Act extends to whole of India except Jammu andKashmir


4/18

ESTA BLI SHMENTS COVERED

Subject to the provisions of Section 16

To every establishment - A factory specified in Schedule I andin which 20 or more persons are employed;

And

As notified by Central Govt.

EMPLOYEES COV ERED

To each of the employees whether employed by him directlyor through a contractor and the employees contribution shall

be equal to the contribution payable by the employer


5/18

NON A PPLICA BILITY SEC 16

Co-operative societies, employing less than 50 persons

and working without the aid of power

Other State or Central Govt. Establishments having similar

schemes & benefits

To any other establishment set up under any Central,Provincial or State Act having similar schemes & benefits


6/18

IMPORTA NT POINTS REGA RDING

A PPLICATI ON OF ACT

Govt. can extend it to any establishment

This act doesnt apply if the employer & majority employee

has opted other beneficial schemes

Once comes under this act will continues to be coveredeven if no. employees falls below 20.


7/18

EMPLOYEES PROVIDENT FUND SCHEMES

Control of Scheme - Fund is vested in and is administered byCentral Board

Investment - the Board of Trustees in accordance with theinvestment pattern approved by the Government of India

EXCLUDED EMPLOYEES

An Member who has withdrawn his amount from Fund

An employee whose pay at the time has been exceeded

Rs. 5000 per month.

An apprentice


8/18

CONTRIBUTION

Employers contribution 12% of Pay (w.e.f 22.9.1999)

Employees contribution 12% of Pay (w.e.f 22.9.1999)

Pay includes basic wages + dearness allowance +

retaining allowance (if any) + cash value of food concession


9/18

FULL WITHDRAWA L OF ACCUMULATED

AMOUNT

Amount to be received = Contributed Amount + Interest

When employee will get

death,permanent disability,superannuation,retrenchment

migration from Indiavoluntary retirement,

Employee discharges from employment under IndustrialDisputes Act, 1947,

transfer to an establishment/factory not covered under the

Act


10/18

A DVA NCES & WITHDRAWLS

For payment of Life Insurance towards of a memberPurchasing, Construction & renovation of Dwelling house

including purchase of Site for the sameClosure of establishment > 15 days, not due to strikeNon receipt of wages for 2 months or more

Hospitalization for 1 month or more, Major SurgicalOperation or specified diseases, either himself or

family memberMarriage Himself, Son/Daughter, or Brother/SisterPost matriculation study - Son/Daughter

Member effected by Cut of ElectricityDamage of property due to any Calamity

For repayment of loansFor physically handicapped members to purchase any

equipment to minimize hardship


11/18

EMPLOYYES PENSION SCHEME

Under Sec 6, Central Govt. replace the Family Pension Scheme, 1971 bythis Scheme

Central Government Contribution - 1.16% of the wage of the employees.

Employees Covered

All members of the Family Pension Scheme, 1971

The Non members of prior Schemes have an option to join this PensionScheme.

Notes

Minimum 10 years contributory service is required for entitlement topension

Pension on a discounted rate is also payable on attaining the age of 50

years.


12/18

CA LCULATI ON OF PENSION

Member Pension =

Pensionable Salary x (Pensionable Service + 2)70

Note

Where Contributory Period < 20 years, then the calculationshall be done as contributory Period = 20 years

Less 3% x (20 Contribution Period) or 25% whichever isless


13/18

MINIMUM PENSION TO BE RECEIVED

Particulars Minimum PensionContribution for 24 yr or

more

500 p.m. to 800 p.m.

Family Pension member for

10 years

265 p.m.

minimum widow pension 450 p.m. > 2500 p.m.

Child Pension

(till 25 yrs of age)

25% of widow pension, Min

115 p.m.

Orphan Pension 75% of widow pension, Min

170 p.m.


14/18

OPTION OF REDUCED PENSION

Employee can reduce the pension by 10%

If above option is opted then

He will get Return of capital = 100 x Original pension in theevent of his death

In addition to above his Widow &/or Two Children willcontinue to get pension upto 25 yrs or life.


15/18

EMPLOYEES DEPOSIT LINK ED I NSURA NCE

SCHEME SEC 6C

Objective

For providing life insurance benefit to the employees of anyestablishment or class of establishments

Application of the Scheme To all establishment to whichthis act applies

Exemption from the Scheme If any establishment is

having other beneficial schemes

Employees Contribution Nil

Employers Contribution 1% of total pay

Contd


16/18

CONTD.

Administrative expenses 0.01% or Rs. 2 p.m. whicheverIs higher

Nomination Same as in Provident Fund

Payment of assurance benefit Incase of Death

Amount = Average Balance in preceding 12 months ormembership tenor whichever is less

Note

In case Average Balance exceeds 25000 ,then

Amount payable = 35000 + 25% (35000 Avg. balance) or

Rs. 65000 whichever is less


17/18

DETERMINATI ON OF MONEYS DUE

Authorities -

Central Provident Fund Commissioner,Additional Provident Fund Commissioner,Deputy Provident Fund Commissioner, orRegional Provident Fund Commissioner

Mode of recovery of moneys due from employers - As an arrear ofland revenue

Recovery of moneys by employers and contractors Liability ofContractor

Measures for recovery of amount due from employer RecoveryOfficer

Priority of payment of contributions over other debts Insolvent ofWinding up


18/18

MISC. PROV ISIONS

TRANSFER OF ACCOUNTS - If change of Employment

PROTECTION AGAINST ATTACHMENT

POWER TO EXEMPT

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