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THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
18

Provident fund ppt

Aug 17, 2014

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Economy & Finance

Dixita Sharma

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Page 1: Provident fund ppt

THE EMPLOYEES’ PROVIDENT

FUNDS AND MISCELLANEOUS

PROVISIONS ACT, 1952

Page 2: Provident fund ppt

OBJECTIVEOBJECTIVE The Employees’ provident Funds and Miscellaneous

provisions Act, 1952 is enacted to provide a kind of social security to the industrial workers. The Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance.

The Act provides for payment of terminal benefits in various contingencies such as retrenchment, closure, retirement on reaching the age of superannuation, voluntary retirement and retirement due to incapacity to work.

Page 3: Provident fund ppt

APPLICABILITY OF THE ACTAPPLICABILITY OF THE ACTTo every factory employing 20 or more

persons.Any establishment to which the Act

applies shall continue to be governed by the Act even if the number of persons employed therein at any time falls below.

Page 4: Provident fund ppt

The Employees’ Provident The Employees’ Provident Funds Scheme, 1952Funds Scheme, 1952Applicability : Every employee employed

in or in connection with the work of a factory or other establishment covered by the schemes other than an excluded employee is entitled and required to become a member of the fund from the date of joining the factory or establishment.

Page 5: Provident fund ppt

Excluded Employee : An employee who, having been a member of

the fund, has withdrawn the full amount of his contribution in the fund (a) on retirement from service after attaining the age of 55 years or (b) before migration from India for permanent settlement abroad; or for taking employment abroad

An employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds Rs. 6,500/- per month.

A person who, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government.

Page 6: Provident fund ppt

Contribution under EPF Contribution under EPF Scheme,1952Scheme,19521. Employees : 12% on Basic + DA2. Employer : (a) 3.67% on Basic + DA (b) Administrative Charges : 1.10% on Basic +DA

7 Apr 2023

Page 7: Provident fund ppt

The Employees’ Pension The Employees’ Pension Scheme, 1995Scheme, 1995Purpose: The purpose of the scheme is

to provide for (1) superannuation pension, retiring pension or permanent total disablement pension to employees covered by the Employees’ Provident Funds and Miscellaneous Provisions Act, and (2) widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.

Page 8: Provident fund ppt

ContributionContribution

1. Employee: Not required 2. Employer :

(a) 8.33% on Basic + DA

It is to be noted that where the pay of the member exceeds Rs. 6,500/- per month, the contribution payable by the employer will be limited to the amt. payable on his pay of Rs. 6,500/- only.

Page 9: Provident fund ppt

Formalities under EPF ActFormalities under EPF Act Employees have been appointed on salary

( Basic+ DA or Consolidated ) of Rs. 6500 or less or covered under the provision of the EPF Act, right from the day of commencement of their work. Employee can contribute more behind Rs.6500 similarly employer also at his discretion can do so but not mandatory

EPF Act is applicable to such of the establishments who are engaging 20 or more persons or had engaged 20 or more persons at any time during calendar year.

Page 10: Provident fund ppt

Formalities under EPF Formalities under EPF ActAct Casual workers/ Temporary workers/ Probationary, even if they had performed work even for a day, are technically taken into account for the purpose of assessments of strength of 20 for the purpose of applicability of the act and are also covered under the act. Apprentices/ Trainees are excluded from the definition of employees.

Percentage of contribution to be deducted from employees contribution is 12% of his salary, namely Basic + DA , but does not include HRA, CCA, Incentive, Bonus, Washing allowance etc.

Page 11: Provident fund ppt

Formalities under EPF ActFormalities under EPF Act Employer contribution of 12% of the salary of

employees is to be paid as under • 3.67% to be remitted in Account No.1 ( Employees

Account)• 8.33% to be remitted in Account No.10 towards

pension fund

In addition to 12% of the employer has to remit 1.61% paid as under

• 1.10% Administrative charges in Account No.2• 0.5% EDLI in Account No.21• 0.01% Inspection charges in Account No.22

Page 12: Provident fund ppt

Formalities under EPF ActFormalities under EPF Act . To facilitate the employer to make the

above contribution a consolidated challan ( in quadruplicate) is made in which all the above contributions could be remitted one challan itself.

Page 13: Provident fund ppt

The Employees’ Deposit-Linked The Employees’ Deposit-Linked Insurance Scheme, 1976Insurance Scheme, 1976

Purpose : To provide life insurance benefits to the employees of the establishments covered by the EPF & MP Act, 1952

Page 14: Provident fund ppt

Contribution under EDLI Contribution under EDLI Scheme,1976Scheme,19761. Employees : Not required2. Employer : (a) 0.5% on Basic + DA (b) Administrative Charges : 0.01% on Basic +DA Where the monthly pay of an employee is more than

Rs. 6,500 the contribution payable in respect of him by the employer is limited to the amts payable on a monthly pay of Rs. 6,500 only.

Page 15: Provident fund ppt

Benefits of EDLI schemeBenefits of EDLI schemeThe benefit provided under the scheme in the nature

of life insurance as follows:1. On the death of an employment while in service

a lump sum insurance amount is payable to his nominee or family members.

2. The insurance amount is equal to the average balance in the account of the deceased employee in the Provident Fund during a period of 12 months immediately preceding his death. In case the average balance exceeds Rs.35,000/- the insurance amount payable is Rs. 35,000/- plus 25% of the amount in excess of Rs. 35,000/- subject to a ceiling of Rs. 60,000/-.

Page 16: Provident fund ppt

Compliances under EPF & MP Act, 1952Compliances under EPF & MP Act, 1952

In SBIBefore 15th of every month

ChallanMonthly contribution of Employer & Employee in Challan for previous month

2.

RPFC officeBefore 25th of every month

12AMonthly Return4

RPFC officeBefore 15th of every month

10Return of Employees Leaving

3

RPFC officeBefore 15th of every month

5Return of Employees Qualifying

2.

RPFC officeAt the time of joining

2Declaration Form from new Joinees

1.

Remark / Submitted to

Compliance Date

Form No.

Type of ComplianceSr. No.

Page 17: Provident fund ppt

Compliances under EPF & MP Act, 1952Compliances under EPF & MP Act, 1952

RPFC officeWhen new Recruit

13Transfer of PF A/c6.

After 5 Years of membership

31Advances for various Purpose

8.

RPFC officeAt the time of Leaving the service

19, 10C & 10D

Final settlement7.

RPFC officeBefore 30th of April

3A & 6AAnnual return & reconciliation statement

5.

Remark / Submitted to

Compliance Date

Form No.

Type of ComplianceSr. No.

Page 18: Provident fund ppt

THANK YOU.