Employee's Provident Fund

CONTRIBUTION OF EMPLOYERS

 

a) The Employees' Provident Fund Scheme

In respect of establishments employing 20 or more persons and engaged in industry notified under  Section 6  of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

  1. Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
  2. Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
  3. Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
  4. Any Establishment engaged in manufacturing of  (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

b) The Employees' Pension Scheme

  • From and out  of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in  A/C No. 10 ( w.e.f. 1-06-2001 ).  The Central Government also would contribute at the rate of 1.1 / 6% of total wages.
     

c) Employees' Deposit Linked Insurance Scheme:
 

  • No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).

 

Who will be covered by the Pension Scheme?

Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.

 

What is a covered establishment?

Covered establishment is an establishment belonging to the class of industries / other establishments, which has been listed in the schedule appended to the Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.

 

Is employee the only beneficiary of Fund?

Benefit will be paid to him/her and in his/her absence to his/her family. Family means employees' spouse and children below 25 years of age. If he/she does not have a family, benefits will be paid to his /her nominee, who will receive the benefit in his/her, absence. And if the member has no nomination then it is paid to the dependent parents.

   

Can member change his/her nomination?

He/She can change his/her nomination whenever he/she decides within the framework of rules for such nomination. In other words if he/she has a family, nomination should be in favour of a member(s) of the family. If he/she has no family he/she can nominate anyone he/she wishes.

   

How many years service is required to be eligible to receive member pension?

Minimum 10 years eligible service will entitle for member pension.

 

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