|13. THE EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952|
|This Act is applicable on establishments public industries,
employing 20 or more employees. It is a law for social benefit of
employees. The Act has three schemes:-
1. Employeefs Provident Fund Scheme.
2. Employeefs Family Pension Scheme.
3. Employeefs Deposit Linked Insurance Scheme.
Employeefs Provident Fund Scheme: It is a contributory fund for the future of employee after his retirement. Employee and Employer both contribute in this fund. Where the number of employee is less than 50, employees have to pay 10% of their wages towards this contribution. In case of more than 50 employees, employee has to pay 12% of their wages towards this contribution. Employer has to pay 3.67% of wages towards this contribution.
Provident fund is payable to employee after his retirement. In case of its early death, it is payable to person nominated by him or his legal heirs. Some part of Provident Fund can be withdrawn before retirement for construction of House, Children Marriage, etc.
Employeefs Family Pension Scheme:- If contribution is made to this scheme for minimum 10 years, they employee becomes eligible for pension after retirement. In case of his early death, heirs are eligible for pension (only one time contribution is sufficient for pension in case of death - 10 years contribution is not necessary - subject to certain conditions. The contribution towards this scheme is made by Employer 8.33% of employeefs wages. Employee also gets life assurance benefits under this scheme.
Employeefs Deposit Linked Insurance Scheme:- Under this Scheme employeefs get benefit of Insurance of Line. The contribution towards this fund is made by Employer @ .5% of Employeefs wages.