Provident Fund

Topics: Employees Provident Fund, Pension, Retirement Pages: 2 (508 words) Published: August 26, 2013
The Employee’s provident fund and miscellaneous provisions Act, 1952
Introduction
The Employees Provident Fund is set up under the Central Act viz. Employees Provident Fund and Miscellaneous Provisions Act, in the year 1952. It is applicable throughout the country (except Jammu and Kashmir) * It is applicable to almost all establishments falling under the industries/class of establishments, wherein 20 persons are employed. * In the case of cinema theatres workers, it is applicable to such establishments wherein 5 persons are employed. * Benefits to an employee are provided through the schemes framed under the Act. * Provident Fund benefits are provided under the Employees Provident Funds Scheme, 1952. * Pension Benefits are provided under the Employees Pension Scheme’ 95 * Insurance Benefits are provided under the Employees Deposit Linked Insurance Scheme, 1976. * A member of Employees Provident Fund is automatically eligible for Pension and Insurance benefits without paying any additional amount of contribution. Employee Benefits under Provident Fund

* The Provident Fund Act is applicable to specified establishments in which 20 or more persons (including contract employees) are working. * All employees are eligible to become a member of provident fund from the date of joining the establishments. * Every employee at the time of joining the PF Scheme should execute a nomination in Form -2. * Every employee is required to pay Contribution to the Provident Fund at 12% / 10% of the Basic Wages and Dearness Allowance. * The employer will also pay an equal amount of contribution. * Out of the employer’s share of contribution 8.33% of pay is diverted towards Pension Fund and the balance will be credited to Members Provident Fund Account. * The members are informed of the balance of their Provident Fund accumulations every year through Annual Statements of Accounts (Form23). * On retirement or on leaving service, the...
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