Employees Provident Fund act
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.
Applicability of the Employees Provident Fund Scheme, 1952.
The Employees Provident Fund Act 1952 applies to the whole India except Jammu & Kashmir.
- 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.
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
Rates of Contribution
- Employer – 12%
- Employee – 12%
- Govt – 1.16%
- An employee at the time of joining the employment and getting salary up to Rs 6,500/-
- He/ she is eligible for membership of fund from very first date of joining a covered establishment.
To avail pension benefit, the member
- Should have completed 10 years of continuous service (or) attained age of 50 years or more.
- Doesn’t receive any EPF pension.
- Will receive pension amount on a monthly basis after attaining the age of 58.
Payment of Contribution
- The employer shall pay the contribution payable to the EPF, DLI and Employees’ Pension Fund in respect of the member of the Employees’ Pension Fund employed by him directly by or through a contractor.
- It shall be the responsibility of the principal employer to pay the contributions payable to the EPF, DLI and Employees’ Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.