Provident Fund

Topics: Employment, Employees Provident Fund, Pension fund Pages: 4 (739 words) Published: August 14, 2013
Industrial law …

11: UMESH THAKRE
13:ABHISHEK SALUNKHE
25:KETAN JADHAV
34:AKSHAY RANE

The Employee's Profident Fund Act, 1952
Introduction:
* Salary consists of two parts i.e. earnings & deductions * Provident Fund is one of the statutory deduction done by the employer at the time of salary payment * Provident Fund is governed by the Employee’s Provident Fund Act 1952 * 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 & Entitlement

* 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 * 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

Calculation

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