The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is an important legislation which plays a significant role in the sphere of Labour Law. The Act came into existence in 1952 which assures essential Provident Fund, Employees Pension Scheme and Deposit Linked Insurance in factories and other establishments for the benefits of employees. This brief covers, Applicability, Eligibility, PF Contributions and other relevant provisions that are key to EPF Act
1. Applies to establishment/factory in Schedule I, employing 20 or more person [Section 1(3)(a)]
2. The Central Government by notification may apply it to establishments employing 20 or more person [Section 1(3)(b)]
3. By agreement between the employer and the employees [Section 14]
4. Continues to apply to the establishment even if number falls below 20 [Section 1(5)]
5. Central Government can also apply by notification to establishments employing less than 20 employees [Proviso to Sect5ion 1(3)]
Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment
1. Employees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restricted circumstances like buying house, marriage/education, etc.) financial nest/egg to which employees and employer contribute equally throughout the covered persons' employment
2. The sum is normally payable on retirement or death
3. Other benefits includes employees' Pension Schemes and Employees' Deposite Linked Insurance Scheme
1. The employer shall pay the contribution payable to the Employees' Pension Fund in respect of the member of the Employees' Pension Fund employed by him directly or by or through a contractor.
2. It shall be the responsibility of the principal employer to pay the contributions Payable to the Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor
1. Employer has to make a contribution of 12% and employees' contribution of 12% (as revised w.e.f 22nd September 1997) to the Provident Fund Account.
2. 8.33% of the employers' contribution goes towards the Employees' Pension Fund and the remaining 3.67% (approx) goes towards the Employees' Provident Fund Account
Employer liable to pay 12% simple interest or higher rate on amount due from due date till payment
Avoiding / Causing/ Making False statements or representation
Contravention or default of Section 6 or 17
Non-Compliance of any provision
Contravening or defaulting of conditions subject to which exemption was granted
Rs 5,000.00 fine or one year imprisonment or both
Imprisonment extending to 3 years
Imprisonment extending to 1 year or fine extending Rs 4,000.00 or both
Imprisonment extending to 6 months and fine extending to Rs 5,000.00
1. Can be recovered under Section 14B for the default in paying the contribution as specified para 32A
Less tahn2 months 5
2 months and above but less than 4 months 10
4 months and above but less than 6 months 15
6 months and above but less than 6 months 25
Establishments
1. Registered under the Co-operative Society's Act or any relating law employing less than 50 persons
2. Belonging or under the Government's Control whose employees entitled to benefits as per the Government's Rule or Scheme.
