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The Employee Provident
Fund & MiscellaneousProvision Act,1952
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Topics Covered
Definition/Objectives
Coverage
Schemes
On Joining
PF Contribution
Interest
Prescribed Investment Pattern of PF Trust
Withdrawal Benefits of the Act
Challans & Return
Conclusion
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DEFINITION/OBJECTIVES
Compulsory contributory fund for the future of
the employee after his retirement or for hisdependents in case of early death.
Equal Contributions by employer and employee
are made at specifies rate.
On Retirement , an accumulated sum is payablein lump sum with interest.
Three Funds have been created for the above:#Provident Fund
#Pension Fund
#Deposit Linked Insurance Fund
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COVERAGEAll establishments employing 20 or more persons
are covered under this act.Cooperative societies employing 50 or more
persons.
Contractors Employees are covered.
Apprentice & Trainees are not covered under this
act.
This Act does not apply to a newly set up
establishments for an initial period of 3 years fromthe date on which such establishments is or has
been set up.
Once Covered, continues to be covered.
PF Act is applicable in every state except J&K
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SCHEMES
The following three schemes have beenframed under EPF & MP Act, 1952
The Employee Provident Fund Scheme,1952
Employee Pension Scheme,1995
Employees Deposit Linked Insurance
Scheme,1976
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ON JOINING
Form no. 2 giving details of nominees incase of death is to be filled.
Transfer form no. 13 is to be filled in caseemployee had been working before also.
Withdrawal form no. 19, when hewithdraws his PF
Allotment of PF no. by the employer.
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PF CONTRIBUTION
PF is deducted on Basic Salary. If employeesbasic is less than or equals to Rs. 6500, he will
be covered in PF.
Statutory rate of contribution is 12% of :
-Basic wage
-Dearness Allowance
-Cash value of food concession &
-Retaining Allowance
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Contribution shall be 10 % in case of:-
Brick ,Beedi ,Jute, Guar Gum Factories,
Coir Industry other than spinning sector.
Establishments declared as sick
undertakings by Board for Industrial &
Financial Restructuring(BIFR).
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Two parties contribute under the PF Act.
1. The Employee
12 % of Basic Pay goes to PF
2. The Employer
3.67 % of Basic Pay to PF
8.33 % of Basic Pay to EPS
1.61% of Basic Pay to Admin Charges.
Admin ChargesADMIN Charges
PF Admin1.1%
EDLI.5%
EDLI Admin.01%
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INTEREST
FROM FY 2012 the rate of interest on EPF
IS 8.8 P.A
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Investment Pattern prescribedfor Provident Fund Trusts
25%
15%
30%
30%
Central Govt
State Govt.
PSU
Flexible
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WITHDRAWL
A member may completely withdraw theamount that has accrued in his PF if:-
He retires at the age of retirement(presently60).
He retires because of permanent and total
disablement.
He immigrates or takes up employment abroad.
His services are terminated because of
retrenchment
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BENEFITS OF THE ACT
To provide Monetary benefits to surviveafter retirement.
To minimize risk against health, sickness,
disablement of the employee and hisdependents.
Old age Pension benefits.
Widow pension.To maintain dignity & Social status.
One can avail refundable advances & non
refundable advances
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CHALLANS & RETURNS PF challans are submitted on 15th of every month in SBI, 5
days grace period is given to submit challans. PF Returns are submitted twice a year
PF RETURNS
Form 5 is used to submit pf monthly return in which newemployee details is mentioned.
Form 10 is used to submit pf monthly return in which leftemployee details is mentioned.
Form 12A that is used for the same purpose which containsconsolidated details of that particular month-new joinees,leftemployees & employees/employer pf contribution.
Form 3A is used for pf annual return.
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CONCLUSION
PF is an effective old age &survivorship benefit, which along with
the Family Pension Fund & thecompulsory Life Insurance Benefit,aims at providing long term financial
security to the families of IndustrialEmployees in the event of their deathbefore reaching the age ofsuperannuation.
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THANKS