HUMAN RESOURCE DEPARTMENT
By Rajasekar
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The Employee’s Provident Funds Act 1952
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Employer role & responsibility
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Employee role & responsibility
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The Employees Pension Scheme 1995
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The Employees Deposit-Linked Insurance Scheme (EDLI)
1976
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List of Forms
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
Salary consists of two parts i.e. earnings & deductions
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Provident Fund is one of the statutory deduction done by the
employer at the time of salary payment
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Provident Fund is governed by the Employee’s Provident
Fund Act 1952
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Introduction
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Provident Fund has come into force to give better future to
employees on their retirement & his dependants in case of
his death during employment
The Employees Provident Funds Act 1952 is compulsory
contributory fund for the future of an employee after
retirement or for his dependents in case of his early death
Act is applicable to all states of India except Jammu and
Kashmir
Eligibility
 Every industry employing 10 or more persons (180 industries
are specified in Schedule 1 of the Act)
 Every industry employing 10 or more persons which the
Central Govt. may notify
 Any other establishment notified by the Central Government
even if employing less than 10 persons
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Eligibility & Entitlement
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Every employee employed directly / through a contractor who
is in receipt of wages are eligible to become a member of the
fund (exception - Apprentice under the Apprentices Act and
casual laborers)
Irrespective of permanent / probationary employees, all
employees are eligible for joining the PF scheme from the
date of joining the service
Minimum 10% of the basic pay for establishments employed
less than 10 persons; sick industries declared by necessary
authority; Jute, Beedi , Brick, Coir & Guar Gum Industries /
Factories
Other industries maximum 12% of the basic pay
A member can contribute voluntarily more than statutorily
prescribed rate (upto 100% of basic salary) which will be
transferred to his PF A/c
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Calculation
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12% contribution by the employee is directly transferred to his
Provident Fund A/c
12% is contributed by the employer out of which 8.33% is
credited to Employee Pension Fund and the balance 3.67% is
transferred to PF A/c of the employee
1.10% Administration charges on total wages are payable by
the employer
0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages
and payable by the employer towards EDLI fund
0.01% EDLI Administration charges calculated on total EDLI
slab wages are payable by the employer
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Benefits
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Employees can take advances / withdraw the PF in case of
retirement, medical care, housing, family obligation, education
of children & financing of life Insurance Polices
Upto 90% of the PF amount can be withdrawn at the age of
54 years or before one year of actual retirement
PF amount of the deceased member is payable to nominees /
legal heirs
Equal contribution by the employer
present interest rate @ 8.5%
PF A/c can be transferred if any member changes from one
establishment to other where the PF Scheme is applicable
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Interest
 Interest is credited to the members PF A/c on monthly
running balance
 Interest rate is fixed by the Central Government in
consultation with the Central Board of trustees of EEPF every
year during March / April
 The present rate of interest is 8.5%
Nomination
 The member can nominate other person / persons to receive
the Fund amount in the event of his death
 The nomination details provided by the members are
maintained at the Regional Provident Fund Office for use in
the event of death of the member
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Annual Statement of Account

After the close of each year of contribution, annual
statement of account will be sent to each member through
establishment where the member was last employed
through form 23.
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Form 23 will show the opening balance at the beginning of
the year, contributions during the year, the amount of
interest credited at the end of the period and the closing
balance at the end of the year
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If any error is noticed in Form 23, the member shall bring the
same to the notice of the PF Office through employer within
6 months from the date of receipt of the statement
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Full Settlement
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PF A/c settled immediately under the circumstances;
◦ Retirement after 58 years
◦ Retirement on account of permanent incapacity
◦ Termination of service on retrenchment
◦ Voluntary Retirement Scheme (VRS)
◦ Permanent migration from India to settle abroad / taking
employment
◦ For female members leaving service for getting married
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PF A/c settled after two months under the circumstances;
◦ Resignation from the services
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Advances / Withdrawals
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Purchase of site for construction of House / purchase of flat
Additions / alterations / improvements to the house
Repayment of loan
Hospitalisation for more than a month / major surgical
operation / suffering from TB, Leprosy, Paralysis, Cancer,
Heart ailment etc
Marriage of self / son / daughter / sister / brother
Education of son / daughter
Physically handicapped member for purchasing an
equipment to minimize the hardship due to handicap
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Employer Role & Responsibility
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Monthly Returns
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Filing monthly PF returns with the EPFO within 15 days of
the close of each month
Provide list of new employees joined in the establishment
during the preceding month & are qualified to become
member in fund (Form-5)
Provide list of employees leaving service during the
preceding month (Form-10)
Employer should file 'Nil' returns if there is no new employee
or no employee leaving the service during the preceding
month
Provide the total no. of members last month, new members
joined and existing members resigned in the preceding
month & total no. of present subscribers to be fund
(Form-12A)
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Annual Returns
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Employer shall send to the Commissioner within one month
of the close of the year, a consolidated Annual Contribution
Statement (Form-6A) and individual employee sheet
(Form-3A) showing the contributions made by the employees
and employer during the year
Penalty
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12–37% interest is payable for the delayed period in remitting
contributions/ administrative charges depending upon the
delayed period
Exemption
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Employer can seek exemption from the Scheme if similar /
better benefits are provided other than the Scheme by
forming a Voluntary PF Trust which will work under the rules
& regulations of EPFO
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Employee Role & Responsibility
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Provide details of self & nominees (Form-2) for PF & Pension
Scheme at the time of joining the establishment
In case of already having PF A/c, apply for transfer of
previous A/c to the present A/c
If willing to increase contribution, inform the same to the
employer to deduct the amount from the salary
(Voluntary Provident Fund).
Voluntary PF can be upto 100% of wages
Understand that the employer is not liable to pay any
contribution on voluntary PF
Understand that Employees' Provident Fund Organization
does not have any agent / middlemen
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Employees Pension Scheme 1995
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Introduction
 To give long term protection / financial security to employee
upon retirement and his family in case of his pre-mature
death, family pension scheme has come into force by
diverting 8.33% contribution made by employer towards PF
scheme
Application
 Scheme is compulsory for all the existing members who
become members of the Employees Provident Fund Scheme
Eligible
 Monthly pension to employees on retirement
 Widows on death of the member
 Children of the member below 25 years age
 Monthly
pension to members upon permanent
disablement during service
total
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The Employees Deposit-Linked
Insurance Scheme 1976
(EDLI)
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Application
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EDLI scheme is compulsory for all the existing members
who become members of the PF Scheme
Life insurance benefit (death coverage) of the employee is
available under this scheme while in service
Calculation
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EDLI is calculated on EDLI slab – Rs. 6500/0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages
and transferred to EDLI fund
0.01% EDLI Administration charges calculated on total EDLI
wages
EDLI / administration charges are payable by the employer
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Eligible
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Person who is eligible to receive PF dues of deceased
member who died while in service is only eligible to receive
EDLI fund
Exemption
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Employer can seek exemption from the Scheme if similar /
better benefits are provided other than the Scheme with the
consent of majority of employees
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List of Forms
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Forms For Claiming Benefits Under PF Scheme
Form
Purpose
For transferring the PF A/c of a member from one
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establishment to another establishment covered under
(revised)
the Act / Scheme
14
19
Application for financing a life insurance policy out of
PF A/c
To be submitted by a member to withdraw his PF dues
on leaving service / retirement / termination
20
In the event of death of member, this form is to be used
by a nominee / family member to claim the member's
PF accumulation
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For the use of PF members to avail advances /
withdrawals as provided in the scheme
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Forms For Claiming Benefits Under Pension Scheme
Form
Purpose
10 C
To be submitted by a member to withdraw his EPS fund
10 D
To be submitted by the first claimant i.e.
- member
- widow / widower
- Orphan
- nominee
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Forms For Claiming Benefits Under EDLI Scheme
Form
Purpose
5 (I.F.)
To be submitted by the person eligible to receive the PF
A/c dues of the deceased member who died while in
services
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Summary
Form
Purpose
2
Nomination Form
5
Return of Employees qualifying for membership to the Employees' Provident Fund for
the first time during every month. Within 15 Days of the following month.
10
Return of members leaving service during the month.
12A
Consolidated Statement of dues and remittance By 25th of the following month
to which the dues relate.
3A
Member's annual Contribution card
6A
Consolidated annual contribution statement
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January
•Before 15th P.F., P.F. Challan
•Before 25th P.F Form 5, 10 & 12A(P.F)
•Monthly statutory register daily/end of the month
(Monthly statutory register should be maintained)
February
•Same as January month
March
•Before 15th P.F., P.F. Challan
•Before 25th P.F Form 5, 10 & 12A(P.F)
•P.F, P.F. Annual Returns form 6A & 3A
•Monthly statutory register daily/end of the month
(Monthly statutory register should be maintained)
April to December
•Same as January month
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