Appendix

· Who is eligible to become a PF member? - 3
· Applicability - 3
· Coverage of New Manufacturing Units – 4
· Benefits to Members - 5
· The periodical returns to be sent - 7
· Claim Forms - 9
· Contribution Table - 9
· Checklist for Claim Forms - 10
· Default in Payment of Dues by Employer – Consequences - 15
· Who is a model Employer? - 16

Who is eligible to become a PF member?

· All employees, employed in an establishment (includes employees employed through contractors, daily rated, piece rated, temporary, casual etc.)
· “Excluded employees” need not be enrolled as PF member.
· Excluded Employees are –
· Apprentice
· Employees drawing the wages (Basic +DA only) beyond Rs.6500/- as on the date of joining the establishment. (if the “wages” of an employee is increased beyond Rs.6500 during the course of employment and after becoming a member of Employee’s Provident Fund, such employees are not to be treated as excluded employees. In such cases his contribution shall be restricted to his wages up to Rs.6500/-)
· Employees whose Employees Provident Fund Accounts were once fully settled after attaining 55 years of age or on permanent settlement abroad.
· Employees drawing wages beyond Rs.6500/- can also become a member of the fund. If the employer and employee give “joint declaration” to the Regional Provident Fund Commissioner.
· An employee at the time of joining an establishment should declare his previous Provident Fund Account Number / Membership details to his present employer for communication to the commissioner.
· All employees should be enrolled as a Provident Fund member from the date of joining the establishment / factory,.

Applicability

Every establishment, which is a factory, engaged in any industry Specified in Schedules 1 and in which 20 or more persons employed
Any other establishment employing 20 or more persons which central Government may by notification, specify in this behalf
Any establishment employing less than 20 persons can be covered voluntarily u/s 1(4) of the Act.

Coverage of New Manufacturing Units

Following Documents Are Required For Deciding Final Date of Coverage
1. Copy of 1st partnership deed / memoranda and article of association
2. Extracts from 1st Year ledger / cash books for :
· 1st purchase of raw material
· 1st salary / wages paid
· 1st sale
· 1st rent paid
3. Copy of 1st Sales tax assessment order
4. Copy of 1st Income Tax assessment order
5. Copy of 1st years balance sheet
6. Salary/wages registers, vouchers, books and balance sheets from date of start till date of provisional coverage done earlier
7. C.S.T & B.S.T. Certificate.
8. Books of accounts (Ledger, cashbooks etc.) since beginning.
9. Balance sheet / P&L account (in case of Limited company Annual Report since beginning.)
10. Shops & Establishment Registration Certificate/Factory License.
11. Partnership deed in case partnership firm) and Memorandum of Association & Articles (In case of Limited Co.)
12. Salary/Wage register and Attendance Register since beginning.
13. Month wise strength of numbers of employees since beginning.
14. List of Directors/Partners/ owners along with their residential addresses.
15. Name of the Bankers, Address of the Bank and name of the person responsible for financial affairs.

Benefits to members

Benefits under Employee’s Provident Funds Scheme – 1952

· Every employee is required to pay contribution to the provident fund @12% / 10% of the Basic wages and Dearness Allowance.
· The Employer will also pay an equal amount of contribution
· While contributing to Employees Provident Funds, the member is eligible for Income Tax rebate.
· The Provident Fund accumulations of the member will earn compound interest, calculated on monthly running balances
· The members are informed of the balance of their Provident Fund accumulation every year through the Annual Statement of Accounts ( Form 23)
· The Provident Fund members can avail advances / partial withdrawals for Housing, Marriage, illness, closure of establishment etc., through application in Form 31 which provides details and documents to be submitted.
· On retirement or on leaving service, the Provident Fund accumulations can be withdrawn in full by submitting application in Form 19
· In case of premature death, the Provident Fund is payable to Nominee(s) / Family members by submission of Form 20 by each beneficiary.
· A member of Provident Fund also acquires membership under pension scheme.

Benefits of Pension Scheme

· Pension is a boon to working class. It is no more the prerogative of Government employees.
· An Employee eligible for Pension after 10 years of service.
· The Pension is payable on attaining the age of 58 years, whether he is in service or superannuated.
· Early Pension at reduced rate can be availed on leaving the employment, after attaining the age of 50 years
· Where an employee is totally disable and leaving service on account of disablement, Disablement pension is allowed. No age and service stipulation to claim the pension.
· Pension is based on age, wage and service of an employee at the time of leaving service.
· The payment of pension is guaranteed and assured even in cases where the employer fails to deposit the pension contributions
· Every year, the pension quantum may increase.
· Wherever the Pension Claims are received three months before the date of superannuation, the Regional Provident Fund Commissioner will deliver the Pension Payment Order on the day of superannuation.
· Apart from Pension Benefit, a member can commute upto one-third of his pension and in lieu of this, he will receive a lump-sum amount equivalent to 100 times of the commuted value of the pension.
· A Pensioner may nominate a person to receive a lump-sum amount after his death, as Return of Capital.
· Family Pension is payable in case of death of a member.
· After leaving the employment
· While in employment
· After drawing the pension
· To receive the Family Pension, only one application in Form 10 D is required to be submitted by the widow/widower, on her behalf and also on behalf of her/his children.
· Family Pension is payable even when the death occurs before 10 years of service. Thus, the minimum eligible service of 10 years is not applicable.
· On death of a pensioner, the Pension is automatically payable to the spouse (widow / widower).
· When a member dies as Bachelor or Spinster or where there is no spouse or children below 25 years, the Family Pension is payable to dependent father followed by dependent mother.
· In addition to Family Pension to Widow / Widower, Children below 25 years are also eligible for Pension simultaneously. It is payable to the married daughters also, below the age of 25 years.
· On death or re-marriage of widow / widower, Children will be given enhanced pension treating such children as Orphan.
· On behalf of the minor children the pension is payable to guardian.
· Any child in a family with total and permanent disablement will receive Children Pension till death.
· The monthly pension is payable through designated Banks and Post offices on the first day of every month through the Savings Bank account of the pensioner.
· The Pension can be drawn anywhere in India.
· The employees with less than 10 years of service on the day of superannuation may avail the benefit of withdrawal from Pension Fund.
· Where an employee has not served for 10 years on the date of leaving service and has not attained the age of 58 years, he may obtain a Scheme Certificate so as to continue his membership during unemployment period and the same can be used to count the previous service as and when he joins another establishment covered under the Act.
· The employees who have not contributed to the Employee’s Family Pension Scheme, 1971 can also join the Employee’s Pension Scheme before attaining the age of 58 years, at their option, after paying the contribution and interest upto-to-date.
· The contribution to Pension Fund can be made beyond the ceiling limit of Rs.6500/- on the joint request of the employee and the employer so as to get more benefit.
· The pension quantum is determined separately for the period of service from 1.03.1971 to 15.11.1995 as fixed amount. This is known as “Past Service” benefit.
· The pension for the service rendered on or after 16.11.1995 is calculated through formula namely (Personable service * Personable Salary) / 70
· An employee on his superannuation is entitled for pension (through the above formula) up to 60% of the personable salary. (Personable Salary would mean, the salary drawn by the employee for a period of 12 months prior to the date of superannuation).