The Employee Provident Funds, 1952
Provident fund is a welfare scheme for the
benefits of the employees. Under this scheme
both the employee & employer contribute their
part but whole of the amount is deposited by
the employer. Employer deducted the
employee share from the salary of the
employee.
Boards under the Act
Appointment of central fund commissioner
The central government shall appoint Central provident fund commissioner,
deputy provident commissioner and regional provident fund commissioner
by discharging his duty they will assist central provident fund commissioner.
Chief executive officer is appointed by the central provident fund
commissioner.
Central Board will appoint other officers, employees for the efficient
administration of various schemes.
EPF Features
The employer is under a statutory obligation to deduct a specified percentage of
the contribution from the employee’s salary for provident fund. The employer
should also contribute such percentage for provident fund.
Employee who gets more than 15,000 is eligible Non-applicability of the Act
Applicability of the Act – section 1
Any establishment registered under
the co-operative society Act, 1912.
establishment in
which 20 or more
are employed.
Only 50 or more persons, after the
expiry of 3 years.
Only 20 or more, but less than 50
establishment people before the expiry of 5 years,
notified by the
central government.
Employees
provident fund
scheme 1952
Employees deposit
Schemes under
linked insurance
EPF
scheme, 1976
Employee’s family
pension scheme,
1995
UAN- Universal Account Number
Universal account number (UAN) is number given to an employee by the Ministry
of Employment and Labour under the government of India, who is maintaining PF
account.
It used to know information or track information done by his employer regarding
his provided fund (PF).
When an employee joined in the new organisation, he was assigned with new PF
account, after UAN came into existence, the member of the assemble (employee)
all his PF account associated with multiple Ids of difference organization at one
place.
So through UAN, difficulties faced by the employee when he/she joins the new
organization is overcome, with UAN they can track the activities if there are any
payment issues.
Uses of UAN
•It is a unique number given to an employee, which is independent of
employers.
•UAN is used to link all the PF account when the employee is switching his
company.
•An employer can authenticate his employee by verifying this number and
KYC documents.
•EPF passbook can be verified by sending SMS EPFOHO UAN ENG TO
7738299899 from the mobile number which is registered under employee
provident fund organization.
•An employee can check his deposit done by his employer through online
using UAN number, and you can also get a monthly update regarding your
deposit done by the employer.
EPF Calculation
Contribution for EPF is two parts, one is by the employee, and the other is by the
employer.
Contribution by the employee is, including basic wage and dearness allowance is -12%.
Contribution on the part of the employer is-
8.33% (for Employees Pension Scheme Account of Employee)
3.67 % (for Employee Provident Fund Account of Employee)
0.50% ( for Employees Deposit Linked Insurance Account of Employee)
0.50% ( is Employer has to pay an additional charge for an administrative account-
minimum 500 rupees and if there is no contribution by the employer that month, an
employer must pay rupees 75)
The interest rate for every month is 8.65%, which may differ every year (interest rate is
calculated every month, but it is deposited in the account at the end of the financial year)
Example
For example, the employee is getting a basic salary and dearness
allowances at rupees 15, 000.
Employee’s contribution to EPF is 12% of 15,000 that is 1,800.
Employer’s contribution to EPF is 8.33 % of 15,000 that is 1,250.
Employers contribution for EPF is subtracted from employees
contribution that is (1800-1250=550)
Total EPF contribution every month is 1800+550=2,350
Interest for every month is 8.65%/12= 0.7083% (4,700)
APFC 2025
• Pension scheme
• Deposit linked insurance
• Penalties
• Contribution
• Major changes in NEW LABOUR CODES
Contribution
Employee – 12 % Employer – 12 %
EPF Calculation
Contribution for EPF is two parts, one is by the employee, and the other is by the
employer.
Contribution by the employee is, including basic wage and dearness allowance is -12%.
Contribution on the part of the employer is-
8.33% (for Employees Pension Scheme Account of Employee)
3.67 % (for Employee Provident Fund Account of Employee)
0.50% ( for Employees Deposit Linked Insurance Account of Employee)
0.50% ( is Employer has to pay an additional charge for an administrative account-
minimum 500 rupees and if there is no contribution by the employer that month, an
employer must pay rupees 75)
The interest rate for every month is 8.65%, which may differ every year (interest rate is
calculated every month, but it is deposited in the account at the end of the financial year)
Example
For example, the employee is getting a basic salary and dearness
allowances at rupees 15, 000.
Employee’s contribution to EPF is 12% of 15,000 that is 1,800.
Employer’s contribution to EPF is 8.33 % of 15,000 that is 1,250.
Employers contribution for EPF is subtracted from employees
contribution that is (1800-1250=550)
Total EPF contribution every month is 1800+550=2,350
Interest for every month is 8.65%/12= 0.7083% (4,700)
Penalties under act
• For avoiding basic instructions – 1 year
improvement or 5000 rupees fine or both
• Any regulatory with employee contribution-
1 year imprisonment or 10000 fine or both
• Any administrative regularity- 6 month
imprisonment or 5000 rupees fine or both
EPF SCHEME EDLI SCHEME
Change made in
NEW LABOUR CODES
EMPLOYEE PROVIDENT FUND
The code has revised the applicability of the Employees Provident
Fund Scheme (“EPF”). The EPF will apply to the establishment
employing 20 or more employees. The Central Government may
establish the Provident fund where the contribution paid by the
employer to the fund shall be 10% of the wages for the time being
payable to each of the employees (whether employed by him
directly or by or through a contactor), and the employee’s
contribution shall be equal to the contribution payable by the
employer
An employee can contribute more than 10 %, subject to the
condition that the employer is not be under an obligation to
pay more than 10 %, Provided that the Central Government
may by notification, modify the rate from 10% to 12%
EMPLOYEES STATE INSURANCE (ESI)
ESI scheme will apply to establishment employing 10
or more employs. It is also be applicable to an
establishment, which carries on such hazardous or life
threatening occupation as notified by the Central
Government, even a single employee is employed.
The code covers the gig workers and platform workers
under the ESI scheme
If the employer fails to pay ESI contributions, the ESIC
(employees state insurance corporation) may pay the
benefits to the employee and recover it from the employer
the capitalized value of the benefit, including the
contribution amount, interest and damages, as an arrear of
land revenue or otherwise.
