EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952

Object of the Act

To provide wider terminal benefits to the Workers on completion of their employment.

 

Applicability

Every specified factory OR establishment in which 20 or more persons are employed.

Any factory or Establishment can also voluntarily cover under the Act, even if the number of employees are less than 20.

 

Eligibility

• Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment and drawing salary upto Rs.6,500/- p.m. (Basic + DA).

• Any disabled employee appointed after 1.4.2008 drawing salary upto Rs.25,000/-

• Any international worker (irrespective of salary limit)

 

Payment of Contribution

• The employer shall pay the contribution payable to the EPF, DLI 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, DLI and Employees’ Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

 

Rates of Contribution

• Employer - 12%

• Employee - 12%

• Govt. - 1.16%

 

Benefits

• Withdrawal of accumulated amount with interest on exit from employment.

• Advances in severely restricted circumstances like buying house,marriage/education, etc.

• Pension to the employees under Employees’ Pension Scheme

• Insurance under Employees’ Deposit Linked Insurance Scheme.

 

Damages on Delayed Payment

• Less than 2 months ….@ 5% per annum

• Two months and above but less than upto four months …. @10% per annum

• Four months and above but less than upto six months …. @ 15% per annum

• Six months and above ….@ 25% per annum

• Simple Interest @12% p.a. on delayed payment of contribution.

 

Penal Provision

• For contraventions of Provisions of the Act, imprisonment upto 3 years and fine upto Rs.10,000/-.

• For repeated contraventions of the Act, imprisonment upto 5 years and fine upto Rs.25,000/-.