Sunday, 16 December 2018

Employee Provident Funds Scheme 1952 (EPF) -

Employees’ Provident Fund Scheme, 1952

The development and welfare of a country are firmly identified with the welfare of its natives and the quality of an organization/association lies in its representatives'. A fulfilled workforce can push an association to more current statures, helping them accomplish significance. One approach to rouse representatives is to offer them genuine feelings of serenity in regards to their future, a future where money related necessities could exceed individual objectives and aspirations. 

India, being a welfare state endeavor to give its residents certain rights and benefits intended to improve their personal satisfaction. The Directive Principles of State Policy put the onus on the administration to make certain arrangements towards its kin, including government-managed savings. It was with this aim the administration set up a statutory body, The Employees' Provident Fund Organization which screens and controls the Provident Fund Scheme, Insurance Scheme, and Pension Scheme. The Employees' Provident Fund Scheme of 1952 goes about as the background for the administration to uphold certain approaches, with the Ministry of Labor and Employment responsible for its usage.

Physical Applicability of Scheme:-

The Employees' Provident store Scheme is enforceable all through the domain of India, with the exception of the province of Jammu and Kashmir. This guarantees each qualified individual is secured by the Scheme paying little mind to his/her home or work environment, making it at comprehensive plan. 

Eligibility Criteria:-

The arrangements of Employees' Provident Fund Scheme are pertinent to the accompanying classifications of associations. 

  • An association which is engaged with a movement referenced under Schedule 1 of this Act. 
  • An organization which utilizes in excess of 20 individuals. 
  • A film theater which utilizes in excess of 5 individuals.


While this Scheme is intended to cover each working individually, there are sure exceptions given. These special cases are referenced underneath. 

  • Co-agent social orders which work without the guide of intensity and utilize under 50 individuals. 
  • Associations built up by local or state acts under which representatives are given advantages including contributory PF or annuity. 
  • Associations under the control of focal or state governments wherein workers are qualified for advantages like PF and benefits.

Who is an Employee?

Under the arrangements of this plan, a worker is characterized as any person who is utilized for wages in an association. This incorporates people chipping away at an agreement premise and the individuals who are procured for all time. Wages under the plan allude to all compensations which a worker acquires while related with the association. Sustenance concession, dearness stipend, extra, presents and additional time don't group as wages under this plan.

The cover offered by Employees’ Provident Fund Scheme:-

The Employees’ Provident Fund Scheme is designed to offer certain benefits to individuals covered under it, taking care of the following needs.

  • Medical care and Housing
  • Education of dependents (children)
  • Finance of insurance and health policies
  • Family obligations
  • Retirement

Contributions under Employees’ Provident Fund Scheme:-

According to the arrangements of The Employees' Provident Fund Scheme, both a business and a representative are relied upon to make commitments towards this store. A commitment equal to 12% of the Basic DA, holding stipend and money part of nourishment remittance should be made, given this commitment is restricted to under Rs 6,500 every month. People can upgrade their commitment willfully, gave both the representative and boss concur for the equivalent. 

This commitment is brought down to 10% for organizations secured before 22/9/1997, utilizing under 20 individuals. Debilitated modern organizations, associations which endure money related misfortunes comparable to their total assets and those assembling blocks, jute, beedi, coir and guar gum items likewise fall under this class.

When are accumulated funds payable?

A representative can pull back EPF balance under the accompanying conditions. 

  • On retirement from the administration. A worker ought to have accomplished the age of 55 years to be qualified for withdrawal. 
  • On moving to another nation in the quest for business or las


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