EMPLOYEES PROVIDENT FUNDS AND MISC PROVISIONS ACT 1952

EMPLOYEES PROVIDENT FUNDS AND MISC. PROVISIONS ACT 1952 www. wepindia. com

Introduction SCHEMES UNDER THE ACT. Ø EMPLOYEES PROVIDENT FUNDS SCHEME, 1952 Ø EMPLOYEES DEPOSIT LINKED INSURANCE SHEME, 1976 Ø EMPLOYEES PENSION SCHEME, 1995 www. wepindia. com

PF SCHEME APPLICATION: Ø To every establishment employing 20 or more employees. Wages: Ø basic wages Ø dearness allowance and Ø retaining allowance, if any www. wepindia. com

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

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

PF SCHEME RATE OF INTREST: Ø 9. 5 % P. A. VOLUNTARY CONTRIBUTION: Ø In multiples of Hundreds (Max. limit of one month basic+da) DECLARATION & NOMINATION Ø FORM 2 Ø Distribution of amount Ø Fresh nomination on attaining family. www. wepindia. com

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

PF SCHEME WITHDRAWALS: Ø 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 Ø No withdrawal is allowed if it is for joint family except jointly with spouse. www. wepindia. com

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

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

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

EDLI SCHEME Obj: For providing life insurance benefits to the employees. Contributions: Ø Employer and Govt will contribute @ 0. 5% of wages. (Max wage limit is Rs. 6500/-) Benefit: Ø Equivalent to fund accumulations or 12 months average bal or 25000. + 25 % of excess of 25000 with limit of RS. 35000/www. wepindia. com

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

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

EPS SCHEME CONTRIBUTIONS: Ø 8. 33% of employers contribution be diverted Ø 1. 16% of Govt Contribution (max wage: Rs. 6500) Pensionable Service: Ø Contributions received or receivable Ø Service Weight-age of 2 yrs incase of 20 years or more pensionable service. www. wepindia. com

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

EPS SCHEME Monthly Pension formula: Pensionable service. X Pensionable salary/70 Options : (Return of Capital) Ø 90% of pension- nominee will get 100 times as lumpsum on death of member Ø 90% of pension- widow will receive 80% of original pension and 90 times of original pension Ø 87. 5% of pension for fixed 20 yeas. 100 times at www. wepindia. com

EPS SCHEME WITHDRAWALS: Ø Employees who put in less than 10 yrs service are eligible incase not employed elsewhere. Ø 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. ) Ø Emp who put in 10 yrs service and ceased to be in employment may opt from 50 yrs of age. www. wepindia. com

EPS SCHEME FORMS: Ø FORM 2: To be used for furnishing Nominee Details. Ø FORM 10 C: To be used for claiming Withdrawal Benefits Ø FORM 10 D: To be used for claiming Monthly Pension www. wepindia. com

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

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

Thank You www. wepindia. com

badari narayana [ybadarinarayana@yahoo. com] Ø Dear Rajeev, Ø Ø 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 Ø Pls note my official mail id also: Ø badari. naayana@wepindia. com Ø regards Ø Badarinarayana www. wepindia. com