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1) Introduction –

It was enacted to provide social security, provides for retirement such as P.F., Super-annuation,
family pension and deposit linked insurance. Payment of terminal benefit, such as retrenchment,
closure, retirement on reaching super-annuation, etc. The following are thus covered, employment
provident fund scheme,1952; employees pension scheme,1995; employees deposit inked insurance

2) Applicability of the Act –

Any establishment that comes under the definition of a factory in which more than 20 people are
employed. Any establishment with 20 or more persons specified by the Central Government and
notified in the official gazette. Any establishment with less than 20 people but notified in the official
gazette by the Central Government. Any establishment, wherein the employees and the employer
decide to join P.F., notify the Central P.F. commissioner, can join the same.

Once in P.F., even if strength decreases they are a part of P.F.

Co-op societies, or establishment who under state law come under co-op societies, with less than 50
employees aren’t eligible, this also extends to those belonging to under the control of central
government, or those established by state or central government. Sikkim and J&K are also excluded.

3) Provident Fund –

Created with a view to provide financial stability and security to elderly people, by helping
employees save a fraction of their income for post-retirement or in time of need. EPFO is the worlds
largest social security organization, it’s a statutory body under the Indian Govt’s Labour and
Employment Ministry.

Rates of Contribution – Employer – 13.601 and Employee – 12

4) Pension schemes of E.P.F.O. –

Family Pension Scheme – No pension if member is alive, pension only to small and is of a very small
percent, 3.34.

Employee Pension Scheme – If alive then pension to him, otherwise to spouse and 2 children.

5) Eligibility –

Employed directly or through a contractor and receiving wage, could be permanent or probationary
employees, min 10% of wage for establishment of under 10 people, sick industries declared by
authority, jute, beedi, brick and guar gum industries. Member can contribute voluntarily up to 100%
of his basic salary.

6) Benefits –

Employee can take advances/withdraw PF in case of retirement, medical care, housing, family
obligation or education of children. Up to 90% can be withdrawn at the age of 54 or 1 year before
actual retirement, deceased members PF to legal heirs. It’s tax deductible for employer.

12,501 has option and 15,000 is compulsion.

7) Eligibility –

If more than 15,000 then eligible, and eligible from day 1 of work.
8) Provident Fund Contribution –

Contributed by both employer and employee, is 12% for someone who earns up to 15,000 rupees
and employee can contribute more than statutory max and is considered voluntary contribution.

Voluntary Contribution – Employee can voluntarily contribute more than stipulated %, up to 100% of
the wage. It must be a certain %, employer is not bound to contribute at enhanced rate, preferably
done at start of financial year.

Employer Contribution - Read from notes, not important.

Read Rest too boring.