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Employee's Provident Funds and Miscellaneous Provisions Act, 1952



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Sections of the Act

ACT NO. 19 OF 1952

[4th March, 1952.]

An Act to provide for the institution of provident funds,family pension fund and deposit-linked insurance fund]] for employees in factories and other establishments.

BE it enacted by Parliament as follows :--

  • Section 1: Short title, extent and application
  • Section 2: Definitions
  • Section 3: Power to apply Act to an establishment which has a common provident fund with another establishment
  • Section 4: Power to add to Schedule I
  • Section 5: Employees' Provident Fund Schemes
  • Section 5A: Central Board
  • Section 5AA: Executive Committee
  • Section 5B: State Board
  • Section 5C: Board of Trustees to body corporate
  • Section 5D: Appointment of officers
  • Section 6: Contributions and matters which may be provided for in Schemes
  • Section 7: Modification of scheme
  • Section 8: Mode of recovery of moneys due from employers
  • Section 9: Fund to be recognised under Act 11 of 1922
  • Section 10:
  • Section 11:
  • Section 12:
  • Section 13:
  • Section 14:
  • Section 15:
  • Section 16:
  • Section 17:
  • Section 18:
  • Section 19:
  • Section 20:
  • Section 21: Power to make rules
  • Section 22: Power to remove difficulties

Notes

  • Long title of this act is: Employee's Provident Funds, Family Pension Fund and Deposit Linked Insurance Fund, 1952
  • Since 1972, the word 'Family' is omitted.
  • This Act is popular as Employee's Provident Funds and Miscellaneous Provisions Act, 1952
  • Objective: To provide for the institution of Provident Funds, Pension Funds and Deposit Linked Savings Insurance Funds for employees in factories and other establishments.
  • Employer responsible for depositing employees and employers share into the fund
  • Employee's Provident Funds (Amendment) Act, 1956 extends the Act to non-factory establishments
  • Extended to plantations of Tea, Coffee, Rubber, Cardamom and Pepper employing 50 or more workers
  • Central Government by a two-month notice can extend the Act to other establishments even when it has less then 20 members
  • Two conditions for applying the act in Scheduled industry:
    • Manufacturing process must be carried. Establishment must be engaged in an industry specified in Schedule I
    • Not less then 20 persons should be employed
    • The expression '20 persons' was replaced later with '20 employees'.
  • EPF Act will apply to establishments after 5 years of the starting of the manufacturing process by the establishment
  • Once the condition for application of the scheme under the Act are fulfilled, it applies (and continues to apply) even if the Act ceases to apply to the establishment. This is because the scheme depends on its own and not on the Act for its functioning. The admission on the part of the employer that 20 employees worked only at least one day is sufficient for the Act to apply.
  • Section 2(aa): Authorised Officer means:
    • Central Provident Fund Commissioner
    • Additional Central Provident Fund Commissioner
    • Deputy Provident Fund Commissioner
    • Regional Provident Fund Commissioner
    • or such other officers as may be authorised by the Central Government
  • Regulatory Mechanism
    • Section 5A: Central Board
    • Section 5AA: Executive Committee
    • Section 5B: State Board
    • Central Government
  • The Fund is created under Section 5 and vested in and administered by the Board created under Section 5A.
  • Contributions to the Fund – Clause 29 :
    • By Employer - 10% of basic, DA and Retention Allowance – 12% in respect of establishments/class specified by CG
    • Matching contribution by employee
  • Scheme Applicable to :
    • All factories and other establishments to which Act applies or is applied – does not apply to Tea Factories in Assam
    • All employees drawing pay upto Rs 6,500 per month
  • Corpus of the Fund under the Scheme to be deposited with RBI, SBI or any other approved scheduled bank – clause 48, 52
  • Corpus to be invested as per direction of CG, in securities referred to in Section 20 of Indian Trusts Act – clause 52
  • Fund cannot be expended for any purpose other than to credit of individual members
  • The Employees Pension Scheme, 1995
  • Pension Fund – Created under Sec 6A and vested in and administered by the Board created under sec 5A
  • Contributions to the Pension Fund – Clause 3:
    • By Employee – 8.33% of basic, DA and Retention Allowance – This is a part of the contribution made to the Fund under the EPF Scheme
    • By CG – 1.16% o the pay
  • Scheme Applicable to :
    • All employees of factories and other establishments to which Act applies or is applied in terms thereof
  • Scheme to provide for :
    • Replaces Family Pension Scheme which merges with this scheme
    • Superannuation pension, retiring pension, disablement
    • Widow/widower, children or orphan pension
  • Corpus of the Pension Fund, except the CG contribution shall be invested as per directions of CG in securities referred to in Section 20 of Indian Trusts Act – clause 26
  • Pension Fund cannot be expended for any purpose other than payments envisaged in the scheme, i.e. payment of family pension, life assurance benefit and retirement cum withdrawal benefits – clause 27
  • Employees Deposit Linked Insurance Scheme, 1976
    • Deposit Linked Insurance Fund – Created under Sec 6C and vested in and administered by the Board created under sec 5A
    • Contributions to the Insurance Fund :
      • By Employer – 1% of aggregate of basic, DA and Retention Allowance - Sec 6C(2)
      • Up to 0.25% to meet expenses etc. - Sec 6C(4)(a)
    • Scheme Applicable to :
      • All employees of establishments to which the Act applies
    • To provide life insurance benefits
    • Investment of funds in the Insurance Fund :
      • Funds contributed into the Insurance Fund upto 31.3.1997 to be deposited with CG and shall fetch statutory interest @8.5% per annum.
      • From 1.4.1997- Corpus of the Fund under the scheme to be deposited with RBI,SBI or any other approved scheduled bank and invested as per direction of CG in securities referred to in Section 20 of Indian Trusts Act
      • Insurance Fund cannot be expended for any purpose other than payment of benefits under the scheme – clause 17(1)
  • Central Board
    • Constituted by notification by CG – sec 5A
    • Trustees appointed for a period of 5 years
    • To administer the Funds in respect of the Schemes provided by the Act and to effectuate the provisions of the scheme
    • Appoint Central Provident Fund Commissioner to act as the CEO of the Board
  • Composition
    • Chairman & Vice Chairman
    • Not more than 5 persons from the CG officials
    • Not more than 15 persons representing state government
    • 10 persons representing the employers of the establishments to which the respective schemes apply
    • 10 persons among employees
  • Section 16: Act not to apply to certain establishments

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