Notes For ca cpt students - Prudhvi this notes was copied by so many lecturers in andhra pradesh

1. The Employees Provident
Funds & Miscellaneous
Provisions Act, 1952
1

2. To provide retirement benefit to the employees in the form of lump sum
amount and also provide for a pension scheme to the employee & his
family. This Act is now applicable to employees drawing monthly pay
not exceeding Rs.6,500/-.
Presently the following three Schemes are in operation under the Act:-
1. The Employees’ Provident Fund Scheme, 1952
2. Employees’ Pension Scheme, 1995 and
3. Employees’ Deposit Linked Insurance Scheme, 1976.
2

3.  All establishments / factories included in the list of notified industries
and class of establishments as in Schedule I and employing 20 or more
persons.
 Any other establishment employing 20 or more persons or class of
establishments which the Central Government may notify.
 The Act will come into force in an establishment from the very date of
set up or commencement of business except certain class of
establishments as excluded under Section 16 of the Act.
3

4. It extends to the whole of India except the State of Jammu and Kashmir.
Subject to the provisions contained in section 16, it applies-
(a) to every establishment which is a factory engaged in any
industryspecified in Schedule I and in which 6[twenty] or more
personsare employed, and
(b) to any other establishment employing 7[twenty] or more persons
or class of such establishments which the Central Government
may, by notificationin the Official Gazette, specify in this behalf:
• Provided that the Central Government may, after giving not less than
two months' notice of its intention so to do, by notification in the Official
Gazette, apply the provisions of this Act to any establishment
employing such number of persons less than 8[twenty] as may be
specified in the notification.

5. • S.1(4): Notwithstanding anything contained in sub-section (3) of this
section or sub-section (1) of the section 16 where it appears to the
Central Provident Fund Commissioner, whether on an application
made to him in this behalf or otherwise, that the employer and the
majority of employees in relation to any establishment have agreed
that the provisions of this Act should be made applicable to the
establishment, he may, by notification in the Official Gazette, apply
the provisionsof this Act to that establishment.

6. • Any establishment registered under Cooperative Societies Act or
State Law relating to Cooperative societies, employing less than
50 persons and working withoutpaid of power.
• Toany establishmentbelonging to or under Controlof Central
Governmentor State Government
• Toany establishmentset upunder any Central or State Act
• Any otherestablishmentnewly set upuntil the expiryof 3 years
• An employee who, having been a member of the fund, has
withdrawn the full amount of his contribution in the fund (a) on
retirement from service after attaining the age of 55 years or (b)
before migration from India for permanent settlement abroad; or
for taking employment abroad

7. • An employee who, having been a member of the fund, has
withdrawnthe full amount of his contribution in the fund
(a) on retirement from service after attaining the age of 55 years or
(b) before migration from India for permanent settlement abroad; or for
taking employment abroad
• An employee whose pay at the time he is otherwise entitled to
become a member of the Fund, exceeds Rs. 6,500/- per month.
• A person who, is an apprentice, or who is declared to be an
apprentice by the authority specified in this behalf by the
appropriateGovernment.

8. AppropriateGovernment:
The AppropriateGovernment is the Central Government in relation
to-
 in relation to an establishment belonging to, or under the control of,
the Central Government or in relation to an establishment
connected with a railway company, a major port, a mine or an oil
field or a controlled industry, 2[or in relation to an establishment
having departments or branches in more than one State,] the Central
Government; and
 in relation to any other establishment, the Appropriate Government
is the State Government.

9. Basic Wages:
• “Basic Wages” means all emoluments which are earned by an
employee while on duty or 4[on leave or on holidays with wages
• In either case] in accordance with the terms of the contract of
employment and which are paid or payable in cash to him, but does not
include--
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever
named called paid to an employee on account of a rise in the cost of
living), house-rent allowance, overtime allowance, bonus, commission
or any other similar allowance payable to the employee in respect of
his employment or of work done in such employment;
(iii) any presents made by the employer

10. Employer:
“Employer” means-
(i) in relation to an establishment which is a factory, the owner or the
occupier of the factory, including the agent of such owner or
occupier, the legal representative of a deceased owner or occupier
and, where a person has been named as a manager of the factory
under clause (f) of sub-section (1) of section 7 of the Factories Act,
1948 (63 of 1948), the person so named.
(ii) In relation to any other establishment, the person who, or the
authority which, has the ultimate control over the affairs of the
establishment, and where the said affairs are entrusted to a manager,
managing director or managing agent; then such manager, managing
director or managing agent.

11. Employee:
“Employee” means any person who is employed for wages in any kind of
work, manual or otherwise, in or in connection with the work of 1[an
establishment], and who gets, his wages directly or indirectly from the
employer, 2[and includes any person]-
(i) employed by or through a contractor in or in connection with the work
of the establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under
the Apprentices Act, 1961 (52 of 1961) or under the standing orders of
the establishment.

12. (Cont..)
“Exempted Employee” means an employee to whom a Scheme 4[or the
Insurance Scheme, as the case may be,] would, but for the exemption
granted under section 17, have applied;
“Exempted Establishment” means an establishment in respect of which
an exemption has been granted under section 17 from the operation
of all or any of the provisions of any Scheme [or the Insurance
Scheme, as the case may be], whether such exemption has been
granted to the establishment as such or to any person or class of
personsemployed therein.

13. Factory:
“Factory” means any premises, including the precincts(boundaries)
thereof, in any part of which a manufacturing process is being
carried on or is ordinarily so carried on, whether with the aid of
power or without the aid of power.
Industry:
“Industry” means any industry specified in Schedule I, and includes any
other industry added to the Schedule by notification under section4.

14. TheEmployeesProvident
FundScheme
TheEmployees’ Pension
Scheme
TheEmployeesDeposit
LinkedInsurance
Scheme

15. The Central Government may, by notification in the Official Gazette, frame a
Scheme to be called the Employees' Provident Fund Scheme for the
establishment of provident funds under this Act for employees or for any
class of employees and specify the establishments or class of establishments
to which the said scheme shall apply and there shall be established, as soon
as may be after the framing of the scheme, a fund in accordance with the
provisionsof this Act and the Scheme.
• The fund shall vest in, and be administered by, the Central Board
constitutedunder Section 5-A.
• Subject to the provisions of this Act, a Scheme framed under subsection(1)
may provide for all or any of the matters specified in Schedule-II.
• A scheme framed under sub-section (1) may provide that any of its
provisions shall take effect either prospectively or retrospectively on such
date as may be specified in this behalf in the Scheme.

16. The employer’s and employee’s contributionis 12% each. The
employer’scontributionto the Provident Fund will be 10%/12% of
thePay ( i . e Basic Wages +D . A + RetainingAllowance)
The Central Government is empowered to increase the rate of
contribution to 12% by way of notification in the official
Gazette.
Employee earning more than Rs.6,500 per month is eligible for
availing this scheme.

17. 1. Employees : 12% on Basic + DA
2. Employer:
(a) 3.67% on Basic + DA
(b) Administrative Charges : 1.10% on
Basic +DA
9-Apr-14

18. Out of employer’s contribution of 12% the
employer’s contribution of 8.33% will be diverted to
Employees Pension Scheme. The balance will be
retained in the EPF Scheme .Thus, on retirement, the
employee will get his full share plus the balance of
employer’s share retained to his credit in EPF account.
The amount received by way of Provident Fund
Contributions is to be invested by the Board of Trustees
in accordance with the investment pattern approved
by the Government of India. The members get interest
on the money standing to the credit at a rate
recommended by the Board of Trustees approved by
the Government of India

19. The Central Government may, by notification in the Official Gazette,
constitute with effect from such date as may be specified therein, a Board
of Trustees for the territories to which this Act extends (hereinafter in this
Act referred to as the Central Board) consisting of the following
8[persons, as members], namely:
(a)a Chairman and a Vice-Chairman] to be appointed by the Central
Government; the Central Provident Fund Commissioner, Ex-officio;]
(b) not more than 15 persons appointed by the Central Government from
amongstits officials;
(c)not more than 15 persons representing Governments of such States as the
Central Government may specify in this behalf appointed by the Central
Government;

20. (d)Ten persons representing employers of the establishment to which the
Scheme applies, appointed by the Central Government after
consultation with such organizations of employers as may be recognized
by the Central Government in this behalf; and
(e)Ten persons representing employees in the establishments to which the
Scheme applies, appointed by the Central Government after
consultation with such organizations of employees as may be recognized
by the Central Government in this behalf.
(2) The terms and conditions subject to which a member of the Central
Board may be appointed and the time, place and procedure of the
meetings of the Central Board shall be such as may be provided for in
the Scheme.

21. (3) The Central Board shall 1[, subject to the provisions of Section 6-A and
Section 6-C administer the fund vested in it in such manner as may be
specified in the Scheme.
(4) The Central Board shall perform such other functions as it may be
required to perform by or under any provisions of the Scheme ,the
Pension Scheme and the Insurance Scheme.
(5) The Central Board shall maintain proper accounts of its income and
expenditure in such form and in such manner as the Central Government
may, after consultation with the Comptroller and Auditor-General of
India, specify in the Scheme.
(6) The accounts of the Central Board shall be audited annually by the
Comptroller and Auditor-General of India and any expenditure
incurred by him in connection with such audit shall be payable by the
Central Board to the Comptroller and Auditor-General of India.

22. (7) The Comptroller and Auditor-General of India and any person appointed by
him in connection with the audit of the accounts of the Central Board shall have
the same rights and privileges and authority in connection with such audit as
the Comptroller and Auditor-General has, in connection with the audit of
Government Accounts and, in particular, shall have the right to demand the
production of books, accounts, connected vouchers, documents and papers and
inspect any of the offices of the Central Board.
(8) The accounts of the Central Board as certified by the Comptroller and m
Auditor-General of India or any other person appointed by him in this behalf
together with the audit report thereon shall be forwarded to the Central Board
which shall forward the same to the Central Government along with its
comments on the report of the Comptroller and Auditor-General.
(9) It shall be the duty of the Central Board to submit also to the Central
Government an annual report of its work and activities and the Central
Government shall cause a copy of the annual report, the audited accounts
together with the report of the Comptroller and Auditor-General of India and
the comments of the Central Board thereon to be laid before each House of
Parliament].

23. (1) The Central Government may, by notification in the Official Gazette,
constitute, with effect from such date as may be specified therein, an
Executive Committee to assist the Central Board in the performance of its
functions.
(2) The Executive Committee shall consist of the following persons as
members,namely:-
– a Chairman appointed by the Central Government from amongst the
members of the Central Board;
– two persons appointed by the Central Government from amongst the
personsreferred to in clause (b) of sub-section (1) of Section5A
– three persons appointed by the Central Government from amongst the
personsreferred to in clause (c) of sub-section (1) of Section 5-A;

24. – three persons representing the employers elected by the Central
board from amongst the persons referred to in clause (d) of
subsection(1)of Section 5-A;
– three persons representing the employees elected by the Central
Board from amongst the persons referred to in clause (e) of
Subsection (1) of Section 5-A;
– the Central Provident Fund Commissioner, ex-officio.
(3)The terms and conditions subject to which a member of the Central
Board may be appointed or elected to the Executive Committee and
the time, place and procedure of the meetings of the Executive
Committee shall be such as may be provided for in the Scheme.

25. (1) The Central Provident Fund Commissioner, any Additional Central
Provident Fund Commissioner, any Deputy Provident Fund
Commissioner, any Regional Provident Fund Commissioner or any
Assistant ProvidentFund Commissioner may, by order,
(a) in a case where a dispute arises regarding the applicability of this Act
to an establishment, decide such dispute; and
(b) determine the amount due from any employer under a provision of
this Act, the Scheme or the Pension Scheme or the Insurance Scheme, as
the case may be, and for any of the aforesaid purposes may conduct such
inquiry as he may deem necessary.

26. (2) The officer conducting the inquiry under sub-section 1 shall, for the
purposes of such inquiry have the same powers as are vested in a court
under the code of Civil Procedure, 1908 (5 of 1908), for trying a suit in
respect of the following matters, namely:-
(a) enforcing the attendance of any person or examining him on oath:
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavit;
(d) issuing commissions for the examination of witnesses, and any such
inquiry shall be deemed to be a judicial proceeding within the meaning
of sections 193 and 228, and for the purpose of section 196 of the Indian
Penal Code 45 of 1960.
(3) No order shall be made under sub-section 1, unless the employer
concerned is given a reasonable opportunityof representing his case.

27. • Where an order under sub-section 1 is passed against an employer ex-parte, he may,
within three months from the date of communication of such order, apply to the officer
for setting aside such order and if he satisfies the officer that the show cause notice was
not duly served or that he was prevented by any sufficient cause from appearing when
the inquiry was held, the officer shall make an order setting aside his earlier order and
shall appoint a date for proceeding with the inquiry:
• Provided that no such order shall be set aside merely on the ground that there has been
an irregularity in the service of the show cause notice if the officer is satisfied that the
employer had notice of the date of hearing and had sufficient time to appear before the
officer.
Explanation.- Where an appeal has been preferred under this Act against an order passed
ex parte and such appeal has been disposed of otherwise than on the ground that the
appellant has withdrawn the appeal, no application shall lie under this sub-section for
setting aside the ex parte order.
• No order passed under this section shall be set aside on any application under sub-
section4 unless notice thereof has been served on the opposite party.

28. Purpose:
The purpose of the scheme is to provide pension and life assurance to
employees of any establishment to which this act applies.
(1) superannuation pension, retiring pension or permanent total
disablement pension to employees covered by the Employees’
ProvidentFunds and Miscellaneous ProvisionsAct, and
(2) widow or widower’s pension, children pension or orphan pension
payable to the beneficiaries of such employees.

29. Such sums from the Employer’s contribution to EPF
Scheme as may be specified in the Pension Scheme.
However the sum shall not exceed 8.33% of the Pay
(Basic Wages+ D. A +Retaining Allowance), balance-
3.67% as the case may be, will be credited
in employee’s name in Provident Fund account.
Monthly Pension=Pensionable Salary*(Pensionable
Service+2)/70.
For e.g. Pensionable service=33 years, pensionable
salary= Rs. 5,000,
Monthly pension = 5,000*{33+2}/70= Rs. 2,500.

30. 1. Employee: Not required
2. Employer :
(a) 8.33% on Basic + DA
It is to be noted that where the pay of the member exceeds Rs. 6,500/-
per month, the contribution payable by the employer will be limited
to the amt. payable on his pay of Rs. 6,500/- only.

31. Purpose: To provide Life insurance benefits to
the employees of the establishment to whom the
Act applies. After the Insurance Scheme has been
framed , the Central Government Shall establish a
deposit Linked Insurance scheme by way of
notificationin the Official gazette.
Contribution: Employees: Not required..
Employer:(a) 0.50% on Basic + DA
(b) Administrative Charges : 0.01% on Basic
+DA and retaining allowance(if any)Where
the monthly pay of an employee is more than
Rs.6,500 the contribution payable in respect
of him by the employer is limited to the
amounts payable on a monthly pay of Rs.
6,500/-

32. Purpose:
To provide life insurance benefits to the employees of the establishments covered
by the EPF & MP Act, 1952
1. Employees : Not required
2. Employer :
(a) 0.5% on Basic + DA
(b) Administrative Charges : 0.01% on
Basic +DA
Where the monthly pay of an employee is more than Rs. 6,500 the
contribution payable in respect of him by the employer is limited
to the amts payable on a monthly pay of Rs. 6,500 only.

33. The benefit provided under the scheme in the nature of life
insurance as follows:
1. On the death of an employment while in service a lump
sum insurance amount is payable to his nominee or
family members.
2. The insurance amount is equal to the average balance in
the account of the deceased employee in the Provident
Fund during a period of 12 months immediately
preceding his death. In case the average balance
exceeds Rs.35,000/- the insurance amount payable is
Rs. 35,000/- plus 25% of the amount in excess of Rs.
35,000/- subject to a ceiling of Rs. 60,000/-.

34. Schemes Employer’s Employees’* Central Govt. Total
Provident Fund 3.67% 12% 0% 15.67%
Insurance Fund
(EDLI)
0.5% 0% 0% 0.5%
Pension Fund 8.33% 0% 1.16% 9.49%
Total 12.5% 12% 1.16% 25.66%
* Rate of contribution is 10% in respect of following
establishments :-
less than 20 persons are employed.
sick unit declared by the BIFR.
34

35.  Casual workers/ Temporary workers/ Probationary, even if
they had performed work even for a day, are technically
taken into account for the purpose of assessments of strength
of 20 for the purpose of applicability of the act and are also
covered under the act. Apprentices/ Trainees are excluded
from the definition of employees.
 Percentage of contribution to be deducted from employees
contribution is 12% of his salary, namely Basic + DA , but
does not include HRA, CCA, Incentive, Bonus, Washing
allowance etc.

36.  Employer contribution of 12% of the salary of employees
is to be paid as under
• 3.67% to be remitted in Account No.1 ( Employees Account)
• 8.33% to be remitted in Account No.10 towardspension fund
 In addition to 12% of the employer has to remit 1.61%
paid as under
• 1.10% Administrativecharges in Account No.2
• 0.5% EDLI in Account No.21
• 0.01% Inspection charges in Account No.22

37. • To facilitate the employer to make the above
contribution a consolidated challan (in quadruplicate)
is made in which all the above contributions could be
remittedone challan itself.

38. In SBIBefore 15th of every
month
ChallanMonthly contribution of Employer
& Employee in Challan for previous
month
2.
RPFC officeBefore 25th of every
month
12AMonthly Return5
RPFC officeBefore 15th of every
month
10Return of Employees Leaving4
RPFC officeBefore 15th of every
month
5Return of Employees Qualifying3.
RPFC officeAt the time of
joining
2Declaration Form from new
Joinees
1.
Remark /
Submitted to
Compliance DateForm
No.
Type of ComplianceSr.
No.

39. RPFC officeWhen new Recruit13Transfer of PF A/c6.
After 5 Years of
membership
31Advances for various Purpose8.
RPFC officeAt the time of
Leaving the service
19, 10C &
10D
Final settlement7.
RPFC officeBefore 30th of April3A & 6AAnnual return & reconciliation
statement
5.
Remark /
Submitted to
Compliance DateForm No.Type of ComplianceSr.
No.

40.  Form 5: Employees qualifying for PF for first time (Month Wise)
 Form 10: Employees leaving the service (Month Wise)
 Form 12A: Statement of contribution (Monthly)
 Form 3A: Contribution card for specific currency period(Employee wise)
 Form 6A: Annual Statement of contribution (Company Wise)Declaration: By
the employee
 Form 2: Nomination and Declaration
 Form 19: To claim final settlement of Provident Fund by member
 Form 10C: Claiming withdrawal Benefit/Scheme certificate
 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
other state.
 Form 5IF: To claim assurance benefit under Employees Deposit Linked
Insurance 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

41. Benefit to nominee of employee:
On the death of
an employee
while in service a
lump sum
insurance amount
is payable to his
nominee or
family members.
The insurance amount is
equal to the average
balance in the account of
the deceased employee
in the Provident Fund
during a period of 12
months
immediately preceding
his death. In case the
average balance
exceedsRs.35,000/- the
insurance amount
payable is Rs. 35,000/-
plus 25% of the amount
in excess of Rs. 35,000/-
subject to a ceiling of Rs.
60,000/-.

42. • Appeal against various orders passed under
the Act can be made to employee’s PF
Appellate Tribunal. Appeal is entertained only
after depositing 75% of the amount demanded.
Appeal :
• An application form provision is made to central
Government.
• The application must be made by employer and
majority of employees.
• The establishment employs 100 or more persons.
• The establishment hasn’t committed any default in
the payment of PF contribution or any other offence
during 3 years immediately preceding the date of
application.
• The Central Government has authorized the
employer by an order in writing to maintain a PF A/C
Employer’s
Own PF A/c
Authorization:

43. Manner of
maintenance
of PF A/C.
Submission of
Returns.
Manner of
Depositing the
Contribution.
Facilities to be
provided for
inspection.
Payment of
Administrative
charges.
Other terms &
conditions.

44. Transfer of A/C:
If the new establishment is covered under PF act;
If the new establishment is not covered under the PF act;
If the old establishment was not covered under the PF act.
Penalties:
Any false statement/ false representation/ avoiding any payment of
benefits under the Act- 5 years imprisonment or Rs. 25,000 or both.

45. To collect
information & ask
to furnish
Information on
amount recoverable;
Enter establishment
at any time and
require an employee
to produce before
him examination any
accounts, books,
register or documents
relating to
employment of
persons.
Make copies from
books, register or
other documents in
relation to
establishment.