The Employees' Provident Funds & Miscellaneous Provisions Act was established in 1952 to provide financial security and stability for employees in India upon retirement. The Act requires employers with more than 20 employees to make contributions amounting to 12% of an employee's salary to their provident fund account, as well as pension and insurance funds. Employees can withdraw partial funds for needs like housing or education and full funds upon retirement at age 54. The law aims to help employees save during employment for future financial needs.

1. THE EMPLOYEE’S
PROVIDENT FUND &
MISCELLANEOUS
PROVISIONS ACT, 1952
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2. EMPLOYEE PROVIDENT ACT 1952
• Employees Provident Fund is established in 1952 and hence the act
is named as Employees Provident Fund & Miscellaneous Provisions
Act, 1952, which extend to the whole of India except Jammu &
Kashmir
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3. OBJECTIVE
• A PF Act is created with a purpose of providing financial security and stability to
elderly people.
• It’s purpose is to help employees save a fraction of their salary every month, to be
used in an event that the employee is temporarily or no longer fit to work or at
retirement.
• EPFO is one of the largest society security organization in the world in terms of
members and volume of financial transactions undertaken.
• EPFO is a statutory body of the Indian govt. under labor & employment ministry.
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4. THE ACT CONSIST OF:
• Employees’ Provident Fund, 1952 (EPF)
• Employees’ Pension Scheme, 1995 (EPS)
• Employees’ Deposit linked Insurance Scheme, 1976
(EDLI)
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5. THE EMPLOYEE’S PROVIDENT FUNDS ACT
1952
INTRODUCTION:
Salary consist of two parts i.e. earnings and deductions
It is one of the statutory deduction done by the employer at the time of payment of
salary
This act has come into force to give better future to employees on their retirement
or to his dependents in case of his death during employment
It is the compulsory contributory fund for the future of an employee after retirement
or for his dependents in case of early death
This act is applicable to all state except J&K..
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6. THE EMPLOYEE'S PROVIDENT FUNDS ACT
1952
• ELIGIBILITY
• every industry employing 20 or more persons (180 industries are
specified inschedule 1 of the act)
• every industry employing 20 or more persons which the central
govt. may notify
• any other establishment notify by the central govt, even if employed
person are less than 20
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7. THE EMPLOYEE’S PROVIDENT FUNDS ACT
1952
• CALCULATION:
• 12% contribution by employee directly transferred to his PF A/C
• 12% contribution by the employer out of which 8.33% is transferred to employee
pension scheme and REST Le. 3.67% is transferred to PF A/c
• 1.10% administration charges on total wages payable by the employer
• 0.50% EDLI is calculated on total EDLI slab (Rs. 6500) wages and payableby
employer towards EDLI fund
• 0.01% EDLI administration charges on total EDLI is payable by employer
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8. THE EMPLOYEE’S PROVIDENT FUNDS ACT
1952
• BENEFITS:
• employees can take advances/withdrawal the PF in case of retirement Medical care, housing, for the
education of children, etc…
• up to 90% of amount can be withdrawn at the age of 54 years or before one year of actual retirement.
(Form 19)
• PF amount of deceased person is payable to his nominees/legal heirs
• Equal contribution by the employer
• Present interest rate 8.6%
• PF a/c can be transferred if employee changed from one establishment to other where PF facility is
available
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9. THE EMPLOYEE’S PROVIDENT FUNDS ACT
1952
EMPLOYER’S ROLE AND RESPONSIBILITY
1. MONTHLY RETURNS
• Filing monthly PF returns with EPFO with in 15 days of close of each month
• Provide a list of new employees joined in the establishment during the preceding month and are
qualified to become the member of the fund (Form- 5)
• Provide the list of employees leaving service during the preceding month (Form-10)
• Employer should file the “nil” return of there is no new employee or no employee leaving the
service during the preceding month
• Provide the total no of member last month, joined member and resigned member during the
proceding month, and total no. of present subscriber to the fund (Form-12A)
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10. 2. ANNUAL RETURNS
Employer shall send to commissioner within one month of close of the year, al
consolidated annual contribution statement (Form-6A) and individual employee sheet
(Form-3A) showing the contribution made by the employee and the employer during the
year
3. PENALITY:
17-37% interest is payable for the delayed period in remitting contribution/
administration charges depending upon the delayed period
4. EXEMPTION:
Employer can get the exemption from the scheme if the similar/better benefits are
provided other than the scheme by forming a VPF trost which will work under the rule
and regulation of EPFO
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11. THE EMPLOYEE’S PROVIDENT FUNDS ACT
1952
• EMPLOYEE'S ROLE AND RESPONSIBILITY:
• Provide details for self and nominees (Form-2) for PF & pension scheme at the
time of joining of establishment
• In case of already have a PE a/c, apply for transfer of previous a/c topresent a/c
• If willing to contribute more, inform to employer to deduct the same fromsalary
(VRS)
• VPF can be 100% of salary
• Understand that employer is not liable to contribute to VPFunderstand EPFO
don't have any agent/Middleman.
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