THE EMPLOYEES’ PROVIDENT FUNDS AND

MISCELLANEOUS PROVISIONS ACT, 1952

SESSION-8
 INTRODUCTION
• The EPF & MP ACT, 1952 is a beneficial legislation enacted for the
betterment of the future of industrial workers for financial security, generally
1. On his retirement.
2. For his dependents in case of death of employee.

• This Act is enacted as a social security measure which falls under the ground of
“retirement benefit”, the object of this Act is to inculcate, non- withdrawable
financial benefit, the sum is payable normally on retirement or on the death
of the employee. Administration of the scheme given under this act is done by
the Central Board, State Board, and Regional Committee, a chief executive
committee appointed and constituted by the Central Government.
• The Employees’ Provident Fund (EPF) is generally a retirement benefits scheme,
for which employees of an organization monthly contribute a small portion of their
basic pay In the same line, the Employer also contributes a similar matching amount
on their behalf towards the scheme.
• When contributed together over a long period, the contribution grows and forms a
considerable corpus with stipulated interest, at the time of retirement.
• The corpus is generally used to fund the employee's retirement. However,
employees can choose to withdraw their EPF partially under certain
circumstances.
• Every employee is allotted a unique Universal Account Number (UAN) by the
Employees’ Provident Fund Organisation (EPFO).
• The employee's EPF account is linked with the UAN which is valid throughout the
employee's life. Also, employees need not apply for the transfer of their EPF
accounts when switching between jobs.
Employees’ Provident Fund & Misc. Prov. Act, 1952
• Object of the Act:
An Act to provide for the institution of Provident Funds,
Pension Funds and Deposit Insurance Fund for employees in
Factories and other Establishments.
• Applicable to factories and establishment employing 20 or
more persons
• Wage Limit : Rs.15,000 p.m*
• Schemes under the Act:
• Employees’ Provident Fund Scheme, 1952 (EPF)
• Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI)
• Employees’ Pension Scheme, 1995 (EPS)
 Schemes under EPF & MP Act, 1952
  EPF Scheme EPS-95 Scheme EDLI Scheme
Contribution :      
Employee 12% (@ 10 % for establishment NIL NIL
s mentioned as per Schedule -
(Total 12% / II)
10 %)
Employer Diff. of EE share and 8.33% of Rs. 15,000 0.50%
(Total Pension Cont. + 0.5 % (Admn. (w.e.f. 01.09.2014 )
12% / Charges)
10 %)
Benefits Withdrawal of Full Pension to self : on Insurance Benefit to
accumulation on event of contingencies like Dependents after
Death, TPD, Superannuation, Superannuation/ Death during
Retrenchment, Voluntary Retirement, TPD etc. membership.
Retirement, etc. Pension to Spouse / Minimum assurance
Partial Withdrawal Children / Orphan : on limit Rs 2.5
allowed for specific purpose like Death of member lakh
house building, education, (during service / after Maximum assurance
marriage etc. service) benefit Rs. 6
Lakhs

Exemption Establishments may be granted Exemption under Factories /

exemption under Para 27 of the clauses (a) and (b) of establishment with
Scheme sub-section (1) of better insurance
Section 17 of the Act schemes and benefits
 How does EPF work?

• Under the EPF Act, all organisations with more than 20 employees are required to register with
the EPFO. When an individual starts working in an establishment with more than 20 employees,
both the individual, i.e. the employee, and the Employer are required to contribute 12% of the
basic pay to the EPF account.
• While the entire 12% of your basic pay is directed towards your EPF account, such is not the case
with the Employer's contribution. Though the Employer matches your 12% contribution, only
3.67% of the contribution goes into your EPF account. The remaining 8.33% of the Employer's
contribution up to a threshold limit, is directed towards your Employee's Pension Scheme.
• The Government pools all such funds with the help of trusts which, in turn, invests them in
securities and generate an interest rate in the range of 8% p.a. and 13% p.a. Your EPF account
remains active as long as you are being paid by your Employer.
• Employees can update the new organisation with their EPF account details in the event of a job
change. This will ensure that contributions towards the EPF account continue even after switching
to another company or establishment.
 Applicability & Registration:
• An establishment with less than 20 employees can voluntarily opt for PF
registration to protect employee’s benefits. However, Companies with
more than 20 employees compulsorily have to register under EPFS.
• Once a company is covered under the EPF Act, even if its employee
strength drops below 20, it will still be covered.
 Non-applicability of the Act
The Act does not apply to the following things:
• Any establishment registered under the Co-operative Societies Act, 1912.
• Any state-related Co-operative societies having less than 50 people and working without the
aid of power.
• Any employee drawing Basic salary of more than Rs 15000/ under certain conditions*
Central Government also has the power to exempt any class of establishment, on such
condition mentioned in the notification:
• On the ground of financial position.
• Other circumstances of the case which is held in the case Mohammed Ali V. U.O.I.

Eligibility for getting EPF- Any person is eligible, who is employed:

• For work of the establishment.
• Through contractor.
• Connection with work of establishment, is eligible for the benefit of the Act.
Central Board: Section 5
• Central Board – Central Board is created by official gazette notification
given by the Central Government.
Functions:
• Section 6 and Section 6C discussions how the Central Board should use
their fund vested on them.
• Duty of the Central Board is to send an annual report to the Central
Government, of its work and activities.
• The Central Government will submit a report to the Comptroller and
Auditor General of India. Comments of Central board are laid down
before parliament.
State Board: Section 5 B 
• The Central Government, after consulting with any of the States
constitute the State Board, as provided for in the scheme.
• Constitution of the state board is done by the notification in the official
gazette. Central Government from time to time prescribes the duties to
be performed by the State Board and the powers exercised by the state
Government.
• The scheme will provide the terms condition subject to which a member
of state board is appointed, time, place and procedure for conducting
meetings etc.
• Every board of trustee constituted under this section is a Body
Corporate. Being a body corporate, it has perpetual succession, a
common seal and right to sue or get sued in its name.
Regional Committee 
• Until State Board is constituted, the Central Government may
set up Regional Committee, which is under the control of
Central Government, it works under the advice of Central
Board.
• Central Board, when matters referred to it from time to time.
• All the matter regarding “administration of the Scheme”, such
as the progress of recovery of PF, contribution and other
charges, speedy disposal of prosecution, settlement of claims
and sanctions of advances.
SESSION-9
Three Important Components of EPF &MP
Act:

1. Employee Provident Fund, 1952 (EPF): This scheme aims

to promote retirement savings.
2. Employee Pension Scheme, 1995 (EPS): This scheme aims
to provide post retirement pension.
3. Employee Deposit Linked Insurance Scheme, 1976
(EDLI): This scheme gives lumpsum to family members in case
of sudden death.
 Some Important Key Points:
1. For every employee, it is mandatory to contribute towards EPF and EPS if
his/her wages (Basic + DA) are under Rs. 15,000. If an employee is drawing
wages over 15,000 per month, then he is eligible for PF deductions from his
salary under certain conditions..
2. Both the employees and Employers contribute 12%of the basic wages and
dearness allowance to the provident fund (PF) account. Thus, the total
contribution to the PF is 24% per month.
3. In the EPF account, entire 12%is contributed by the employee, while
3.67% is contributed by the Employer. The Employer’s remaining
contribution of 8.33%  up to a threshold limit is diverted to the Employee’s
Pension Scheme. It is important to note that if the employee salary exceeds
Rs. 15000, the Employer’s contribution towards EPS is restricted to 8.33% of
Rs 15000 per month.
4. Currently, Employee provident fund interest rate is 8.65 % per annum (w.e.f. Feb
2018). The interest is decided by the Government with the consultation of Central Board
of Trustees of the EPFO.

5. The EPF also offers the nomination facility. An employee can nominate his mother,
father, spouse or children who are entitled to receive EPS money in the event of the death
of an employee. However, an employee cannot nominate his brother and sister for EPF.

6. The Employer also makes 0.50% of contribution towards the EDLI (Employees’
Deposit Linked Insurance) account of the employee.

7. The Employer has to pay an additional charge for administrative accounts at a rate of
0.50% with effect from 1st June 2018. The minimum administrative charge is ₹ 500 and if
there is no contribution for a specific month, the Employer has to pay a fee of ₹ 75 for that
month.
 EPF withdrawals Rules:
EPF can be completely withdrawn under any of the following
circumstances:
a. When an individual retires from employment
b. When an individual remains unemployed for a period of 2 months or more
Note:
1. Individual is unemployed for more than 2 months has to be certified by a
Gazetted Officer. 
2. Complete withdrawal of EPF while switching over from one job to
another without remaining unemployed for 2 months or more(i.e. During the
interim period between changing jobs), will be against the PF rules and
regulations and therefore illegal. 
 Returns
• The company needs to file Monthly Returns and Annual Returns.
Company have to submit every monthly paid P.F Challan, Form 12A,
Form 5 (additions) and Form 10 (deletions) and Nomination Form 2
(newly joined employee details).
• In annual Return , file Form 3A and 6A along with the details of Annul
PF Challan payment details are to be filed.
• The Employer needs to collect, certify and submit the Nomination and
Declaration Form in Form-2 of every new joinee to the scheme along
with the monthly report.
• Monthly payment due date is 15th and Annual Return due date is 30th
April of every Year as per P.F authorities treated one year is from 1st
March to 28th February.
 Tax Benefits:
• The Employer contribution to employee EPF is tax-free,
• Employee contribution is tax-deductible under Section 80C of the
Income Tax Act.
• The money invested by employee in EPF, the interest earned and the
money eventually withdraw, by employee after the mandatory specified
period (5 years) are exempt from Income Tax.
 Post retirement benefits of EPF:

• – Upon retirement, the employee receives the full amount in his EPF
account.
• – The employee also receives his/her pension from the EPS account
provided that the employee has completed over 10 years of service.
SESSION-10
 Schemes under EPF
Employees’ Provident Fund Schemes, 1952
• Section 5 gives wholly unrestricted unguided direction to the Central Government to
frame a scheme, and it appears on the other hand that the Act is carefully laid down
principles to guide the Central Government and to operate through Central Board
(held in the case R.P.F.C. Vs. L.R.F Works, A.I.R 1962, 507)
• When this scheme has retrospective effect, the Employer cannot be asked to pay the
employees contribution for the period antecedent to the notification applying the
scheme because he has no right to deduct the same for the future wages payable to the
employee.
• The payment of employee contribution by the Employer with the corresponding right
to deduct the same from the wages of the employees could be only for the current
period during which the Employer also has to pay his contribution, which is held in
the case District Exhibitors Assn., Muzaffarnagar & others Vs. Union of India (1991)
II LLJ 115 (SC).
• They were re-employment by the petitioner on a temporary basis. It was held
that the Employer cannot be asked to pay a contribution in respect of re-
employed employees on a temporary basis which is held in the case Bombay
printers LTD. & Others V. Union of India and others (1992)I LLJ 816 (BOM).
• The fund shall be administered by the Central Board constituted under section
5A of the Act. The scheme shall take effect either prospectively or
retrospectively.
This Act was constitutionally challenged on the ground that it is:
• Discriminative in nature.
• Article 14 is violated because it is applied only to a particular class of industry.
However, the Supreme Court upheld that it doesn’t violate article 14 & is valid,
as it is certain and classification of a certain class of industry falls in reasonable
classification.
Employees’Deposit Linked Insurance Scheme,
1976

• The scheme Established for the purpose of providing life insurance

benefits to the employees.

• All the members of the employee’s Provident Fund Scheme are covered
as members of the employee’s deposit linked insurance scheme also.
Employee’s Family Pension Scheme, 1995
For the benefit of providing family pension and life insurance benefit.
Following benefit package is:
• Pension for life to the member, on retirement and invalidation
• To the dependent member of the family upon the death of the members.
• Facility for capital return ( corpus accretion) on an option formula basis
• Commutation, if pension up to 1/3 Rd of pension amount.
• Retention of membership of the scheme till attaining the age of 68 
• Retirement pension under the new scheme will be payable on fulfilling
minimum 10 years eligible service and on attaining the age of 58 years.
 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 with
multiple Ids of different organizations relating to all PF accounts
associated are brought at one place.
• 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.
 Transparency Through UAN
• Through UAN, employee can check as to whether the Employer is
depositing his PF amount periodically, by registering on EPF member
Portal using his UAN.
• The employee would be able to find out whether his contribution is
deducted by Employer or held back.
 Summary on Contributions
• 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) Up to Rs 15000/-
• 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)
 Conclusion
• The Government of India, vide its notifications dated 1st October,
2008 has introduced Para 83 to the Employees' Provident Fund Scheme,
1952 and Para 43-A to the Employees' Pension Scheme, 1995 creating
Special provisions in respect of the International workers (Special
provisions).
• Employee Pension Scheme.1995 was created by a special provision in
respect of international workers as mentioned in para 43-A. After 2014 it
became easily accessible through EPFO website portal.
• This Act is created mainly for the purpose of encouraging the employees
to save during the period of employment, and gainfully utilize it in their
old age, sickness or for any emergency purposes. 
 Key Definitions introduced in Code on Social Security, 2020
Sl. Key Term Definition
No.
1 Employer • person who employs one or more employees in his establishment
• Includes a Contractor and legal representative of the deceased employer
2 Employee • Person employed on wages
• To do skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative,
technical or clerical work
• for hire or reward, whether the terms of employment be express or implied
3 Establishment • Means any place where any industry, trade, business, manufacture or occupation is carried on
• includes Government establishment
4 Home-based • person engaged in production of goods/ services
worker • for an employer in his home/ other premises other than the workplace of the employer,
• for remuneration
• whether or not the employer provides the equipment, materials etc.
5 Self-employed • Person not employed by an employer,
worker • but engages himself in any occupation in the unorganized sector
• subject to a monthly earning of a notified amount by the CG or the SG,
• holds cultivable land subject to such ceiling as may be notified by the State Government
 Key Definitions introduced in Code on Social Security, 2020
Sl. Key Term Definition
No.
6 Wage worker • Person employed for remuneration
• in the unorganized sector,
• Directly/ indirectly by an employer
• whether exclusively for one employer or for one or more employers,
• whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker, or workers
employed by households,
• with a monthly wage of a notified amount
7 Gig worker • A person who performs work
• Or participates in a work arrangement
• and earns from such activities
• outside of traditional employer-employee relationship
8 Platform worker • A person engaged in or undertaking platform work
• work arrangement outside of a traditional employer-employee relationship
• in which organizations/ individuals use an online platform to solve specific problems
• in exchange for payment
 Key Definitions introduced in Code on Social Security, 2020
Sl. Key Term Definition
No.
9 Fixed term • Engagement of an employee
employment • for a fixed period;
• hours of work, wages, allowances and other benefits shall not be less than that of a permanent employee
• and shall be eligible for all benefits proportionately
10 Career centre • any office including employment exchange, place or portal established by the Central
Government for providing career services.
• It aims to connect persons seeking employment with those who seek to employ by providing
information about vacancies and giving vocational guidance
11 Aggregator • denotes a digital intermediary or marketplace for a buyer or user of a service to connect with
the seller or the service provider.
• The introduction of this definition is linked to platform worker and gig worker.
 Comparison of existing laws and Code on Social Security, 2020
Provision Act Existing Code on Social Security
Applicability Employees’ Applicable to establishments employing Applicability remains to establishments
Provident 20 or more employees. employing 20 or more employees,
Fund & MP Reference to factory engaged in any reference to schedule removed.
Act, 1952 industry specified in Schedule - I
Applicability on Employees’ Pension Schemes not applicable to new Pension and EDLI Schemes not to be
employees Provident employees drawing salary beyond applicable to employees drawing salary
drawing salary Fund & MP threshold/PF wage limit w.e.f. beyond threshold;
beyond threshold Act, 1952 01.09.2014;

PF contribution Employees’
PF contribution payable on the following PF contributions payable on 'wages.’
Provident
components of salary: (a) Basic wages; (the scope of the term ‘wages’ widened to
Fund & MP
(b) Dearness allowance (including the a vast extent)
Act, 1952
cash value of any food concession); and
(c) Retaining allowance (if any).
PF contribution Employees’ PF contribution rates @ 10% (sick PF contribution rates to continue at 10%
rates Provident industry) or 12% or 12%; EDLI contribution capped @1% of
Fund & MP EDLI @ 0.5 % and Admn. Charges @ 0.5% wages (max.)
Act, 1952 \
 Comparison of existing laws and Code on Social Security, 2020
Provision Act Existing Code on Social Security
Responsibility Employees’ Primary responsibility on Primary responsibility on Employers (includes
of deposit of Provident Fund Employers / Contractors. Contractors as per definition)
PF & MP Act, 1952 Principal employers entitled to
contribution recover contributions from Principal employers entitled to recover
with EPFO contractor contributions from contractor

Limitation Employees’ No provision of any limitation Limitation period of five years for initiation of
period Provident Fund period inquiries and two years for concluding inquiries
& MP Act, 1952 under the EPF scheme

Exempted PF Employees’ Exemption u/s 17(1)(a) of EPF & • Private exempted PF Trusts to continue.
Trusts Provident Fund MP Act, 1952 and para 27A of • 3 year initial exemption for new PF Trust
& MP Act, 1952 EPF Scheme, 1952 to (uncertainty for employers looking to apply for
establishments providing better EPF Trust exemption/ defending the interim PF
benefits than the benefits relaxation order)
provided under the Act / Scheme
 Comparison of existing laws and Code on Social Security, 2020
Provision Act Existing Code on Social Security
Contravention of any other Common to all • First instance: Fine up to INR 50,000 and imprisonment
provision Deducts employer’s Subsumed & of up to One year Second and
contribution, fails to pay gratuity, Repealed Acts • subsequent instances: Fine of INR 300,000 and
maternity benefit, cess, fails to imprisonment between two to five years
produce records
Non-compliance of the provisions Common to all Fine up to INR 50,000 and/or imprisonment of 1 year;
of the Code after the timelines Subsumed & • No opportunity provided to the employer if violation of
under the directions from Inspector Repealed Acts the similar nature is repeated within a period of 5 years
cum Facilitator from the first instance
Fails to submit returns, obstructs Common to all • Fine up to INR 50,000
executive officer, fails to pay Subsumed & • Imprisonment up to six months
compensation, send a statement of Repealed Acts
fatal accident/ Dishonestly makes a
false return
 Comparison of existing laws and Code on Social Security, 2020
Provision Act Existing Code on Social Security
Benefits for Un Common to all No such provisions By the Central government
organized Subsumed & • life and disability cover
Workers Repealed Acts • health and maternity benefits
• old age protection
• Education
• any other benefit determined by the Central Government
By the state government
• provident fund
• employment injury benefit
• housing
• educational schemes for children
• skill upgradation of workers
• funeral assistance
• old age homes
Benefits for Gig Common to all No such provisions By the Central government
/ Platform Subsumed & • life and disability cover
Workers Repealed Acts • accident insurance
• health and maternity benefits
• old age protection
• crèche
• any other benefit determined by the Central Government
THANK YOU