Provd Fund

8/4/2019 .Provd Fund

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Employees Provident Fund &

Miscellaneous Provisions Act,

1952By Navita Arora

Lect. DBM


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Applicability

i) Every establishment which is a factory engaged in anyindustryspecified in Schedule 1 and in which 20 or more personsareemployed and

ii) Any other establishment employing 20 or morepersons whichCentral Government may, by notification, specify in thisbehalf.(Infancy period of 3 years has been withdrawn by

ordinance w.e.f.22-9-97) iii) any establishment employing even less than 20

persons can becovered voluntarily u/s 1(4) of the Act.


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Contin.

Any person who is employed for work ofan establishment or employed through

contractor in or in connection with the workof an establishment.


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Benefits

Employees covered enjoy a benefit of SocialSecurity in the form of an unattachable,

unwithdrawable (except employees andemployers contribute equally throughout thecovered persons employment. This sum ispayable normally on retirement or death. Other

Benefits include Employees Pension Schemeand Employees Deposit Linked insurance Fund.


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Penal Provisions

Liable to be arrested without warrant being acognisable offense. Defaults by employerin paying contributions or inspection/

administration charges attractimprisonment up to 3 years and fines up toRs. 10,000 (S.14.) For any retrospective

application, all dues have to be paid byemployer with damages up to 100% ofarrears.


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Benefits at a glance

1. Advance for Purchase of Dwelling Site.2. Advance for Purchase of Dwelling House/flat.3. Advance for Construction of a House.4. Advance for Repayment of housing loan to State

Govt. housing board or any other govt. recognisedhousing finance body.5. Advance for IIIness viz. Hospitalisation for more thanmonth, major surgical operations or suffering from TB,leprosy, paralysis, cancer, heart ailment etc.

6.Advance for marriage of son or daughter.


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Continu

7. Advance for Post Matriculation Education ofSon/Daughter.8. Advance for Damage to the property Due to

Natural calamity (Flood Riot/Earthquake).9. Advance for Member affected by cut in thesupply of electricity.10. Advance for Member who is physically

handicapped.

.

.


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[ A member employee can also withdraw full amount standing tohis credit. in fund (para 69).....]

a) on Resignation.b) On Retirement from the service on attainingthe age of 58 yrs.c) on Retirement on account for permanent ortotal incapacity to work.d) immediately before Migration from India forpermanent settlement abroad or for takingup employment abroad.

e) on Termination due to voluntary retirementScheme, retrenchment, closure of thefactory/establishment


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Employees Family Pension Scheme

The amendment Act of 1971Centralgovt. has powers to make employeespension scheme for providing long term

financial security to the families ofindustrial employees in case of theirpremature death.


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Employee Pension Scheme,1995

Pension at the rate of 50% of pay ispayable to the employee on retirement orcompletion of 33 yrs of service.. The

scheme also provides for the grant offamily pension

Arrangements have been made for

disbursement of pension through 26000post offices across the country .


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THANKS

Have a nice day.

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