EMPLOYEE PROVIDENT FUND ACT, SCHEME AND FAQ’s

Purpose of the Act. An Act to provide for the institution of provident funds, pension fund and deposit- linked insurance fund for employees.

Employee Provident fund Purpose: To provide a lump sum amount to the employee at the time of retirement or permanent disability. Contribution The contribution which shall be paid by the employer to the Fund shall be 12% of the basic wages and dearness allowance. The employee’s contribution shall be equal to the contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding 12% of his basic wages and dearness allowance The employer shall not be under an obligation to pay any contribution over and above his contribution payable.

Employees Pension Scheme

Purpose: The purpose of the scheme is to provide for – (a) superannuating pension, retiring pension or permanent total disablement pension to the employees of any establishment, and (b) Widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.

Contribution for the purpose of Employees' pension Scheme 8.33% of (12% of employers contribution towards Provident Fund) or Rs.541/- which ever is less, will be transferred to Employees’ pension scheme and the balance amount will go towards Employee Provident Fund.

Employees’ Deposit-linked Insurance Scheme Purpose: The Purpose of Employees’ Deposit-linked Insurance Scheme is for providing life insurance benefits to the employees of establishment. Contribution: (only by employer) 1% of (Basic Salary + Dearness allowance)

Frequently Asked Questions related to  Employee Provident Fund  Employee Pension Scheme  Employees’ Deposit-linked Insurance Scheme

 Who will be Covered By Pension Scheme?? Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.  Is Employee the Only Beneficiary of the Fund?? Benefit will be paid to him/her and in his/her absence to his/her family.

 What is the constituent of family?? Family means employees' spouse and children below 25 years of age.  How many years of service is required to be eligible to receive member pension?? Minimum 10 years eligible service will entitle for member pension.  When does an employee become eligible to become a member of Employees' Provident Fund Scheme, 1952 and Employees' Deposit Linked Insurance Scheme, 1976? An employee becomes a member of Employees Provident Fund (Employees' Provident Fund) Scheme, 1952 / Employees Deposit Linked Insurance (Employees' Deposit Linked Insurance) Scheme, 1976 immediately on joining an establishment covered under the Employees Provident Funds & Miscellaneous Provision Act, 1952.

 What is nomination?? Every member has to give the details of himself & details of the nominee for Employees' Provident Fund & Employees' Deposit Linked Insurance Schemes and details of family for Employees Pension Scheme, 1995 in form no. 2. A member if, is having a family can nominate any one or more persons to receive the Provident Fund on his death. In case of him having no family he can nominate any other person. (Family for the purpose of Employee Provident Fund Scheme'52 means wife/husband, children, whether married or unmarried, including adopted children, if adoption is recognized and dependant parents of member.) Employees Deposit Linked Insurance Scheme benefit will be paid to the nominee under Employees Provident Fund Scheme, For the purpose of Employees Pension Scheme,1995 the member has to furnish the details, such as name, relationship & age of all the family members in the form no. 2. Family for the purpose of Employees Pension Scheme, 1995 means wife/husband & children. Whenever member wants to make a change in the nomination already made for Provident Fund, or to update the details of family for Employees Pension Scheme,1995, he has to send a revised form no. 2. The form no.2 is routed through the employer.

 What is the time taken for disposal of the application in the Provident Fund office? The claims received complete in all respects are disposed off within a maximum period of 30 days from the date of receipt of claims in the office. In case the member is not hearing anything about his application within 30 days, he can approach the Public Relation Officer.

FORMS RELATED TO Provident Fund, Employee Pension and Employee Deposit Linked Insurance Scheme Form-19 : To claim final settlement of Provident Fund by a member. Form-20 : To claim Provident Fund by nominee/legal heir on death of the member. Form-10-D : To claim pension. (In duplicate : If within state, In triplicate : If outside state.) Form-10-C : To claim withdrawal benefit/scheme certificate under Employees' Pension Scheme '95 Form-5IF : To claim assurance benefit under Employees' Deposit Linked Insurance '76 by nominee/legal heir of a member. Form-31 : To claim temporary withdrawal/advance under Employees' Provident Fund scheme '52. Form-13 : To effect transfer of Provident Fund/Pension from one A/C to another.

Procedure to be followed in case of Provident Fund, Pension Scheme and Employee Deposit Linked Scheme  Use the appropriate form for claiming Provident Fund Pension, withdrawal benefit/scheme certificate, Employees' Deposit Linked Insurance benefit, etc. Application should be signed by the member/claimant.  Application for final settlement can be sent by a member on completion of 2 months from the date of leaving service, if the reason for leaving service is other than superannuating, medical ground, retrenchment and V.R.S./ Female members getting married etc.  Desired mode of payment can be given legibly, if the amount involved is more than Rs. 2000/-. The amount will sent by deposit in payees' bank a/c. To facilitate this, Bank a/c no., name and address of the bank should be furnished. An advance stamped receipt should also accompany this application.  Application may be supported by the return Form-10, showing the details of leaving service and details of contribution for the year in Form-3A, if not sent earlier by the employer.

Procedure in case of Pension  Joint photograph of member/spouse or the claimant should accompany the application.  Option for return of capital/commutation should be specified clearly.  Details of non-contributory period during the service, wages/salary for last 12 months should also accompany, if not already sent.  Details of the branch of the specified bank may be given legibly.  Date of birth certificates of children  In case of death away from service, an undertaking by the claimant to the effect that the member was not working / had not worked in any other covered establishment after exit from the establishment on the basis of which pension is being claimed.

PROCEDURE IN CASE OF DEATH  Nominee/legal heir should apply in Form-20 /Form-10-D /Form-5IF.  If the member has not executed any nomination, application should be supported by certificate of family members issued by employer/revenue official/sworn in an affidavit by the family/ member/legal certificate from a court of law.  Death certificate of the member.