The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is enacted to provide a kind of social security to the industrial workers. The security, however, differs from the security provided to them under the Workmen's Compensation Act or the Employees' State Insurance Act. The Employees' Provident Funds and Miscellaneous Provisions Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance.
Provision for terminal benefit of restricted nature was made in the Industrial Disputes Act, 1947, in the form of payment of retrenchment compensation. But this benefit is not available to a worker on retirement, on reaching the age of superannuation or voluntary retirement.
The Employees' Provident Funds and Miscellaneous Provisions Act is intended to provide wider terminal benefits to the industrial workers. For example, the Act provides for payment of terminal on reaching the age of superannuation, voluntary retirement and retirement due to incapacity to work.
Provident Fund Registration
(Employer’s Code No. & PF Nomination Formalities)
Apply for PF Registration
(PF Employer’s Code No.)
Prepare the application for Registration
(Annex. 1- Contains Application Format, List of supporting.)
Submit the Application to PF Office
PF Office conducts Inspection at CRC Premises
PF Office allots (1) PF Code No. & (2) Section No.
On obtaining PF Code No, prepare Form 9
(Annex 2 - Details of Employees)
(1) Form 2 (Annex 3 – Employee PF Nomination Form) &
(2) Form 11 (Annexure 4 -Declaration Form)
Submit Form 9 & Form 2 to PF Office
The Form 11 is maintained in the Employee Personal File Informs employee about PF A/c number. This is also reflected In the monthly pay slip. Now begin maintaining the (Annex 5 - PF Eligibility Register)
1. Form 9 – Employee Details, which are self-explanatory. In this form the ASR to allot each employee a PF A/c number, typically starting from 1, 2, 3……
2. Form 2 - Employee Nomination Form which again gives employee details. This form is mainly used to know the nominee details.
3. Form 11 – Declaration Form, which gives previous employment PF account details. 4. PF Eligibility Register consists of (a) Employee Information, (b) Employee PF/Pension Registration, Nomination and A/c details. (Consultant to maintain)
Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment.
Payment of Contribution
The employer shall pay the contribution payable to the EPF, EDLI and Employees' Pension Fund in respect of the member of the Employees' Pension Fund employed by him directly by or through a contractor.
It shall be the responsibility of the principal employer to pay the contributions payable to the EPF, EDLI and Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.
Clarification about Contribution
After revision in wage ceiling from Rs.6500 to Rs.15000 w.e.f. 1.6.2001 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.15000 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.1250 w.e.f. 1.6.2001.
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.15000.
The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.15000 whereas an exempted establishment will pay inspection charges @ 0.005% on the total wages paid.
The above clarification is given by taking wages upto a maximum of Rs.15000 towards wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.15000 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.17, 000 per month, his share towards provident fund contribution will be Rs.2040 e.g. 12% and employer’s share towards provident fund contribution will be Rs.790 and Rs.1250 towards Employees’ Pension Fund.
Employees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restricted circumstances like buying house, marriage/education, etc.) financial nest egg to which employees and employers contribute equally throughout the covered persons’ employment.
This sum is payable normally on retirement or death. Other Benefits include Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.
EPF Challan Contributions :
A/c – 1 : Epf employers 12% + employees 3.67% = 15.67 %A/c – 2 : Epf admin charges = 1.10%
A/c – 10 : Eps employees = 8.33 %
A/c – 21 : Edli = 0.50 %
A/c – 22 : Edli admin charges= 0.01%
Total = 25.61%
Rate of Contribution: