DR. M.K. PANDEY. ACS,LL.M,MBA,ACMA,PH.

Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified. Co-operative Societies, employing 50 or more persons & working without the aid of power. Establishments not coverable statutorily can come under the coverage of the Act statutorily. An establishment continues to be covered under the Act, irrespective of the fall in the employment strength. Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments. A matching contribution is to be collected from the emoluments of the employees. Out of 12% (or 10% as the case may be) of the employer's share of contribution, 8.33% is to be remitted towards pension fund. Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS'1976.

Rate of contribution shall be 10% in the case of the following: Brick, beedi, jute, guar gum factories, coir industry other than spinning sector. Establishments declared as sick undertakings by BIFR.

Employees' Provident Fund Scheme: Every employee (including part-time workers and those employed by or through contractors) shall be entitled to become a member of the Scheme from the date of joining the factory or the other establishment. (Para 26) Every excluded employee shall be entitled to become a member from the date he ceased to be such employee. Every member of an exempted Provident Fund on joining establishment to which the Scheme applies.

Any employee who is not otherwise eligible to become member of the Scheme, on request by him and his employer.
Every newspaper employee other than an excluded employee shall be entitled to become member of the Fund after completion of 3 months continuous service or if he has actually worked for 60 days during 3 months or less (There is no wage ceiling in the case of newspaper employee). (Para 80)

Every Cine Worker other than an excluded employee shall be entitled to become a member of the Fund if he has worked in not less than three feature films with one or more producers provided his pay at the time of joining the Fund does not exceed Rs. 1600/-P.M or Rs.15,000/- per year. (Para 81)

Every employee who became member of the Employees' Provident Fund Scheme on or after 16-11-95. (Employee who is above the age of 58 on the date of joining the Employees' Provident Fund Scheme shall not be enrolled). Every employee who is a member of Employees' Provident Fund Scheme 1952 and who has not opted for erstwhile Employees' family pension scheme, may also become a member if he opts for Employees' Pension Scheme. Every employee who was a member of Employees' Provident Fund Scheme and has left service between 1-493 and 15-11-95 can also join the Employees' Pension Scheme by submission of option.

The Employees' Pension Scheme membership will cease from the date the member attains 58 years of age . However, he will continue to be a member of Employees' Provident Fund till he leaves the service and withdraws the Provident Fund accumulations.

a) Employees' Provident Fund Scheme: 1.10% of total wages on which Provident Fund is recovered subject to a minimum of Rs. 5/- shall be payable by the employer every month . Prior to 1.8.98, w.e.f. 1.8.98 .65% of total wages b) Employees' Pension Scheme : No administrative charges are payable by the employer .The entire cost of administration is met by Central Government . c) Employees' Deposit Linked Insurance Scheme: 0.01% of the total on which the Employees' Deposit Linked Insurance contributions recovered subject to a minimum of Rs. 2/- per month

a) Employees' Provident Fund Scheme: 0.18% of the total wages on which Provident Fund is recovered . b) Employees' Pension Scheme Scheme: Nil . c) Employees' Deposit Linked Insurance Scheme: 0.005% of the total wages of the employees who are entitled to become members of the Employees' Deposit Linked Insurance Scheme subject to a minimum of Re. 1/

a) Employees' Provident Fund Scheme (Para 36)and (Para 36A): Enrol the eligible employees as Employees' Provident Fund subscriber from the right date. Send initial returns in Form 5A , F9(Revised) , accompanied by F2(Revised), monthly returns in F5, accompanied by F2, F10, F12A accompanied by challans and annual return in F3A accompanied by F6A. To maintain the inspection note book for an inspector to record his observation. Maintain such accounts in relation to the amounts contributed to the fund andby his employees. To comply with all the directives issued by the Central Board for proper implementation of the scheme. Pay to the Fund within 15 days of the close of the month both the shares of contribution and administrative charges/ inspection charges

Employer also contributes to Members PF @ 3.67% (1.67% in case of sick industry , beedi) EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused On resignation, the member can settle the account. i.e., the member gets his PF Contribution, Employer Contribution and Interest.

Pension to Member Pension to Family (on death of member) Scheme Certificate Withdrawal benefits No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund

This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.

After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years) This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)

IF not eligible for pension, member may withdraw the amount accumulated in his pension account the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)

Form-19 : To claim final settlement of Provident Fund by a member. Form-20 : To claim Provident Fund by nominee/legal heir on death of the member. Form-10-D : To claim pension. (In duplicate : If within state, In triplicate : If outside state.) Form-10-C : To claim withdrawal benefit/scheme certificate under Employees' Pension Scheme '95. Form-5IF : To claim assurance benefit under Employees' Deposit Linked Insurance '76 by nominee/legal heir of a member. Form-31 : To claim temporary withdrawal/advance under Employees' Provident Fund scheme '52. Form-13 : To effect transfer of Provident Fund/Pension from one A/C to another

Application should be signed by the member/claimant. It should be attested by the former employer. In case attestation by the former employer is not possible, it should be got attested by any other authorized official specified with application form. Application for final settlement can be sent by a member on completion of 2 months from the date of leaving service, if the reason for leaving service is other than superannuation, medical ground, retrenchment and V.R.S./ Female members getting married etc. Desired mode of payment can be given legibly, if the amount involved is more than Rs. 2000/-. The amount will sent by deposit in payees' bank a/c. To facilitate this, Bank a/c no., name and address of the bank should be furnished. An advance stamped receipt should also accompany this application. Application may be supported by the return Form-10, showing the details of leaving service and details of contribution for the year in Form3A, if not sent earlier by the employer.

Nominee/legal heir should apply in Form-20 /Form-10-D /Form-5IF. If the member has not executed any nomination, application should be supported by certificate of family members issued by employer/revenue official/sworn in an affidavit by the family/ member/legal certificate from a court of law. Death certificate of the member. Certificate of the employer stating whether the death was while in service of the member or not.

Joint photograph of member/spouse or the claimant should accompany the application.

Option for return of capital/commutation should be specified clearly. Details of non-contributory period during the service, wages/salary for last 12 months should also accompany, if not already sent. Details of the branch of the specified bank may be given legibly. Date of birth certificates of children In case of death away from service, an undertaking by the claimant to the effect that the member was not working / had not worked in any other covered establishment after exit from the establishment on the basis of which pension is being claimed.