Employees Provident Fund Act 1952

Under EPF, following services are provided:-

  1. Coverage under the EPF & MP ACT 1952/Voluntary Coverage or for Allotment of Separate Code number to Contractors or to Branch offices. Nowadays to apply online through website of EPFO
  2. Exclusion from the purview of the ACT under section 16 of the Act.
  3. Exemption from the EPF SCHEME,
  4. Exemption from the EDLI SCHEME,
  5. Eligibility of membership of an employee under Para 26-B of the scheme.
  6. Compliance in respect of Contractor employees. Nowadays to take up matters online EPFO
  7. Excluded employees,
  8. Contributions,
  9. Determination/assessment of P.F. dues/Damages.
  10. Recovery of Dues/Damages/Arrears, beside report relating to coverage of the establishment etc.
  11. Grant of Installment Facility.
  12. Withdrawal of Prosecution Cases.
  13. Waiver of Damages.
  14. Non issuance of Annual Account slips.
  15. Protection against Attachment of Properties,
  16. Appeal against 7-A/14-B orders in the EPF APPELLATE TRIBUNAL, NEW DELHI.
  17. Writ in the Hon’ble High Court.
  18. Duties of Employers and EPF TRUSTS.
  19. Liabilities of Directors.

Matters Related Employees Pension Scheme[EPS] 1995

Commonly known as “ Pension Scheme ”, which came into existence with effect from 16th November 1995 by replacing earlier Employee Family Pension Scheme 1971 and is applicable to all employees working in a establishment (estt. in short) over which the Employees’ Provident Fund Act 1952 is applicable provided his/her salary/ wage is less than Rs.6500 per month on the date of appointment. Under this scheme , the benefit is paid to him/her and in his/her absence, to his/her family. In case of no family—to the nominee .

  1. Eligibility-
    A member is eligible for benefits of member pension under the scheme if he/she has completed minimum 10 years eligible service including membership rendered under earlier scheme of Employees Family Pension Scheme 1971.
  2. Benefits-
    The benefits provided under this scheme are:-

    1. Monthly Member Pension:— A member must have rendered minimum of 10 years eligible service and must have attained the age of 50 years for claiming early pension. However full pension is available only after attaining the age of 58 years. Membership ceases from the date the member attains 58 years of age, though can continue as P.F. member till leaving of service or withdrawal of P.F. contributions.
    2. Benefits on leaving service before being eligible for monthly member pension:- If a member has not rendered the eligible service on the date of exit or on attaining 58 years of age whichever is earlier, he/she shall be entitled to a withdrawal benefit of amount lying in his/her EPS account or may opt to receive the Scheme Certificate if 58 years age is not attained.
    3. Benefits on permanent and total disablement during the service:- A member who is permanently and totally disabled during the employment shall be entitled to pension as admissible under sub paragraph (2) to (5) of paragraph 12 not withstanding the fact that he/she has not rendered the pensionable service, provide he/she had made at least one month’s contribution to the pension fund. The pension shall be tenable for the lifetime of the member.

However, such a member shall have to undergo such medical examination as are prescribed to determine whether or not the member is permanently and totally unfit for the employment which he/she was doing at the time of such disablement.

  1. Benefits to the family on the death of a member:- Pension to the family is available if the member dies
  2. While in service, provided that atleast one month’s contribution has been paid into the Employees Pension Fund, or
  3. After the date of exit but before attaining the age of 58 years from the employment having rendered service entitling him/her to monthly pension but before the commencement of pension payment.
  4. After commencement of payment of the monthly members pension.

In case’s where a member has rendered less than 10 years eligible service on the date of exit but retained the membership of Pension Fund and dies before attaining the age of 58 years, pension shall be regulated under sub paragraph(8) of paragraph 12.

ADVICE
IT IS ADVICED THAT FOR LATEST UPDATES/CLARIFICATIONS ON EPS 95, PUBLIC RELATION OFFICER(PRO) OF THE OFFICE OF RPFC, BE CONSULTED OR WEBSITE OF EPFO BE BROWESED

Matters Related to Employee’s Deposit Linked Insurance Scheme

This scheme has been framed under which Life Insurance Benefits are provided for the employees of the establishments (estt.) covered under the Act. It is an additional Social Security to the family of deceased member of P.F. & the benefit is linked to the amount of accumulation in the Provident Fund ( P.F.) account of the member.


Contribution

Under this scheme ,the member do not have to contribute any amount as contribution ie. No amount is recovered from the wages but the employer pays an amount equal to 0.5 % of total wages paid to the members as contribution. The employer pays an amount equal to 0.01% of the wages ( minimum Rs. 2 P.M.) as Administrative charges to the EPFO beside 0.005% (minimum Rs. 1 P.M.) as Inspection charges.


The Benefits

The benefit provided under this scheme is called Assurance Benefit which is given to the nominee or other person entitled to receive the P.F. benefits, on the death of the member while in service. The amount of Assurance Benefit payable is an amount equal to the average balance in the account of deceased in the Fund during the preceding 12 months or during the period of his membership whichever is less.
From 1-4-93 onwards the maximum ceiling was Rs.35000 which was increased to Rs.60000 w.e.f. 24-06-2000 & recently enhanced to Rs. One lac wef —


How to Claim

(a)-Form 5 (IF) is to be submitted preferably along with Form 20 & 10-D for claiming P.F, Pension & Assurance Benefit by the nominee. In case of no nominee –to submit a certificate of family members issued by the employer /revenue official/ sworn in an affidavit by family members / legal certificate from a court of law. (b)-Death Certificate of the member to be enclosed.


Exemption

An estt. Can seek exemption from the EDLI Scheme ,1976,as per section 17 (2A)& Para 28 (1) & 28(4) for grant of exemption as a whole or to an employee or to a class of employees from the operation of all or any of the provisions of the scheme , where the Life Assurance Benefit of the scheme in the estt. Is more beneficial than the benefits provided under the Statutory Scheme.

AMENDMENTS IN EPF & MP ACT, 1952

a) Contributions above the salary of Rs. 15000/- under EPS Scheme are not allowed in r/o both existing members as well as those joining after 01.09.2014 except those who are presently contributing above Rs. 6500/- PM.
b) In r/o existing members contributing at a higher rate than 6500/- under E.P.S 95, if the member still opts to continue above 15000/-, he has to give an option within 6 months, to be exercised jointly by employer & employee for deduction of contributions of his salary above 15000/- (R.P.F.C. can further extends six months time, in case of well explained reasons for non applying within six months), failing which exceeded contribution will be diverted to the employees share under the EPF Scheme.
c) Further such an employee opting to contribute on salary higher than 15000/-, he has to contribute at the rate of 1.16% on salary exceeding Rs. 15000/- as an additional contribution from and out of the contributions payable by the employees for each month under the provisions of the Act or the rules made there under.
I would like to explain few more points from the 4 notifications viz. –
1. Notification No. GSR 593 (E) dt. 19.08.2014 relating to EPS 95.
2. Notification No. GSR 608 (E) dt. 22.08.2014 relating to EPF Scheme.
3. Notification No. GSR 609 (E) dt. 22.08.2014 relating to EPS 95.
4. Notification No. GSR 610 (E) dt. 22.08.2014 relating to EDLI Scheme.
HIGHLIGHTS OF THESE NOTIFICATIONS ARE:-
i) Wage / Salary ceiling raised to 15000/- PM from 6500/-
ii) Minimum Pension for 2014 – 15 will be 1000/- PM.
iii) Minimum Children Pension will be 25% of the widow pension subject o minimum of Rs. 250/- PM. In case of orphan pension minimum of Rs. 750/- or 75 % of widow pension.
iv) Average salary to be taken 60 months instead of 12 months for pension calculations.
v) 20% increase in addition to benefits admissible under sub para (1), (2) or (3) of paragraphs 22 of EDLI Scheme.
At the end it is advised that detailed and authenticated guidelines be awaited from the office of RPFC in the near future, especially in r/o of GSR 609 (E) relating to EPS 95.