1. Introduction

2. • The Constitution of India under "Directive
Principles of State Policy" provides that the
State shall within the limits of its economic
capacity make effective provision for
securing the right to work, to education and
to public assistance in cases of
unemployment, old-age, sickness &
disablement and undeserved want.

3. • The Employees' Provident Fund Organization (EPFO) is
a statutory body of the Government of India under
the Ministry of Labour and Employment. It
administers a compulsory contributory Provident
Fund Scheme, Pension Scheme and an Insurance
Scheme. It is one of the largest provident fund
institutions in the world in terms of members and
volume of financial transactions that it has been
carrying on.

4. • The Employees' Provident Fund and
Miscellaneous Provisions Act 1952 applies to
the whole India except Jammu & Kashmir.

5. • Employees' Provident Fund and Miscellaneous
Provisions Act 1952 is applicable to:
• Every establishment which is engaged in any one or
more of the industries specified in Schedule I of the
Act or any activity notified by Central Government in
the Official Gazette. (List of
Industries/Establishments)
• Employing 20 or more persons .
• Cinema Theatres employing 5 or more persons.

6. • The co-operative societies employing less
than 50 persons and working without the aid
of power. 16(1)(a)
• The establishment to which this Act applies
shall continue to be governed by this Act ,
even if the number of employees falls below
20 at a later date. [ 1(5)].

7. • Basic Wages:
"Basic Wages" means all emoluments which are earned by employee while
on duty or on leave or holiday with wages in either case in accordance with
the terms of the contract of employment and which are paid or payable in
cash, but dose not include
• The cash value of any food concession;
• Any dearness allowance (that is to say, all cash payment by whatever name
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
allowance payable to the employee in respect of employment or of work
done in such employment.
• Any present made by the employer.

8. • Employees' Provident Fund Scheme takes care
of following needs of the members:
(i) Retirement
(ii) Medical Care
(iii) Housing
(iv) Family obligation
(v) Education of Children
(vi) Financing of Insurance Polices

9. • contribution payable by the employer [Sec 29]
In respect of establishments employing 20 or more
persons and engaged in industry notified under
Section 6 of Act ( other than the Establishments.
declared as sick )
• 12% of the basic pay DA ,
• Cash value of food concession and retaining
allowance , if any, subject to amaximum of Rs.6500/-
per month.
• Voluntary higher contributions are also acceptable at
the joint request of the member and the employer .

10. • A member of the provident fund can withdraw full
amount at the credit in the fund on retirement from
service after attaining the age of 55 year. Full amount
in provident fund can also be withdraw by the
member under the following circumstance:
• A member who has not attained the age of 55 year at
the time of termination of service.
• A member is retired on account of permanent and
total disablement due to bodily or mental infirmity.
• On migration from India for permanent settlement
abroad or for taking employment abroad.

11. • In the case of the following contingencies, the
payment of provident fund be made after
complementing a continuous period of not less
than two months immediately preceding the date
on which the application for withdrawal is made
by the member:
• Where employees of close establishment are
transferred to other establishment, which is not
covered under the Act:

12. • Where a member is discharged and is given
retrenchment compensation under the Industrial
Dispute Act, 1947. Withdrawal within one year before
the retirement [Sec 68NN] A member can withdraw
upto 90% of the amount of provident fund at credit
after attaining the age of 54 years or within one year
before actual retirement on superannuation
whichever is later. Claim application in form 19 may
be submitted to the concerned Provident Fund Office.

13. • Accumulations of a deceased member. [Sec 70]
Amount of Provident Fund at the credit of the
deceased member is payable to nominees/ legal
heirs. Claim application in form 20 may be submitted
to the concerned Provident Fund Office.

14. • (1) Every employer shall send to the
Commissioner, within fifteen days of the
commencement of this Scheme, a
consolidated return in such form as the
Commissioner may specify, of the employees
required or entitled to become members of
the Fund

15. • showing the basic wage, retaining allowance (if any)
and dearness allowance including the cash value of
any food concession paid to each of such employees:
• Provided that if there is no employee who is required
or entitled to become a member of the Fund, the
employer shall send a ‘NIL’ return.

16. • (2) Every employer shall send to the Commissioner
within fifteen days of the close of each month a
return—
• (a) in Form 5, of the employees qualifying to become
members of the Fund for the first time during the
preceding month together with the declarations in
Form 2 furnished by such qualifying employees, and
• (b) in such form as the Commissioner may specify, of
the employees leaving service of the employer during
the preceding month:

17. • Provided that if there is no employee qualifying to
become a member of the Fund for the first time or
there is no employee leaving service of the employer
during the preceding month, the employer shall send
a ‘NIL’ return.

18. • Each member shall make in his declaration in
Form 2, a nomination conferring the right to
receive the amount that may stand to his credit in
the Fund in the event of his death
• If a member has a family at the time of making a
nomination, the nomination shall be in favour of
one or more persons belonging to his family. Any
nomination made by such member in favour of a
person not belonging to his family shall be invalid

19. (1) A member may be allowed non-refundable
advance from his account in the Fund in cases of
(a) hospitalisation lasting for one month or more,
or
(b) major surgical operation in a hospital, or
(c) suffering from T.B., leprosy, paralysis, cancer,
mental derangement or heart ailment and having
been granted leave by his employer for treatment
of the said illness.

20. • (2) The advance shall be granted if—
• (a) the employer certifies that the Employees’ State Insurance
Scheme facility and benefits there under are not actually
available to the member or the member produces a certificate
from the Employees’ State Insurance Corporation to the effect
that he has ceased to be eligible for cash benefits under the
Employees’ State Insurance Scheme; and
• (b) a doctor of the hospital certifies that a surgical operation or,
as the case may be, hospitalisation for one month or more had
or has become necessary or a registered medical practitioner,
or in the case of a mental derangement or heart ailment, a
specialist certifies that the member is suffering from T.B.,
leprosy, paralysis, cancer, mental derangement or heart
ailment.

21. • (1) The Commissioner or where so authorised by the
Commissioner, an officer subordinate to him may on
an application from a member, authorise payment to
him or her of a non-refundable advance from his or
her provident fund account not exceeding fifty per
cent of his or her own share of contribution with
interest thereon, standing to his or her credit in the
Fund, on the date of such authorisation, for his or her
own marriage, the marriage of his or her daughter,
son, sister or brother or for the post-matriculation
education of his or her son or daughter.

22. • (2) No advance under this paragraph shall be
sanctioned to a member unless—
• (a) he has completed seven years’ membership of the
Fund; and
• (b) the amount of his own share of contributions with
interest thereon standing to his credit in the Fund is
rupees one thousand or more.
• (3) Not more than three advances shall be admissible
to a member under this paragraph.