Employees Provident Fund
The Employees Provident
Funds Act, 1952
Prepared by
Muradi Rajesh
[BCA, MBA_HR] (Location:-Pune)
The Employees Provident Funds Act, 1952
As per Preamble to the Act, the EPF Act is enacted to provide for the institution of provident funds, pension fund and deposit lined insurance fund for employees in factories and other establishments.
The Employees Provident Funds & Miscellaneous Provisions Act is a social security legislation to provide for provident fund, family pension and insurance to employees. Employee has to pay contribution towards the fund. Employer also pays equal contribution. The employee gets a lump sum amount when he retires, which will be useful to him after retirement.
The Act covers three schemes i.e.
• PF ( Provident Fund Scheme )
• FPF ( Family Pension Fund Scheme )
• EDLI ( Employees Deposit Linked Insurance Scheme )
The EPF Act contains basic provisions in respect of applicability, eligibility, damages, appeals, recovery etc. The three schemes formed by Central Government under the Act make provisions in respect of those schemes.
Applicability of the Act:- The Act applies to
• Every establishment which is a factory engaged in industry specified in Schedule I to the Act and in which 20 or more persons are employed.
• Any other establishment or class of establishment employing 20 or more persons which may be specified by Central Government by notification in official gazette.
• Central Government can also apply provisions of the Act to any establishment employs less then 20 persons [Section 1(3)].
• Even if the provisions of PF Act are not applicable in a particular establishment, if employer and majority of employees agree, the Central Provident Fund Commissioner can apply the provisions to that establishment by issuing a notification in official Gazette [Section 1(4)].
• Once the provisions of Act become applicable, it continues to be applicable even if number of
Funds Act, 1952
Prepared by
Muradi Rajesh
[BCA, MBA_HR] (Location:-Pune)
The Employees Provident Funds Act, 1952
As per Preamble to the Act, the EPF Act is enacted to provide for the institution of provident funds, pension fund and deposit lined insurance fund for employees in factories and other establishments.
The Employees Provident Funds & Miscellaneous Provisions Act is a social security legislation to provide for provident fund, family pension and insurance to employees. Employee has to pay contribution towards the fund. Employer also pays equal contribution. The employee gets a lump sum amount when he retires, which will be useful to him after retirement.
The Act covers three schemes i.e.
• PF ( Provident Fund Scheme )
• FPF ( Family Pension Fund Scheme )
• EDLI ( Employees Deposit Linked Insurance Scheme )
The EPF Act contains basic provisions in respect of applicability, eligibility, damages, appeals, recovery etc. The three schemes formed by Central Government under the Act make provisions in respect of those schemes.
Applicability of the Act:- The Act applies to
• Every establishment which is a factory engaged in industry specified in Schedule I to the Act and in which 20 or more persons are employed.
• Any other establishment or class of establishment employing 20 or more persons which may be specified by Central Government by notification in official gazette.
• Central Government can also apply provisions of the Act to any establishment employs less then 20 persons [Section 1(3)].
• Even if the provisions of PF Act are not applicable in a particular establishment, if employer and majority of employees agree, the Central Provident Fund Commissioner can apply the provisions to that establishment by issuing a notification in official Gazette [Section 1(4)].
• Once the provisions of Act become applicable, it continues to be applicable even if number of