Employees Provident Fund

5298 Words Nov 3rd, 2009 22 Pages
The Employees Provident
Funds Act, 1952

Prepared by
Muradi Rajesh
[BCA, MBA_HR] (Location:-Pune)

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The Employees Provident Funds Act, 1952
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As per Preamble to the Act, the EPF Act is enacted to provide for the institution of provident funds, pension fund and deposit lined insurance fund for employees in factories and other establishments.

The Employees Provident Funds & Miscellaneous Provisions Act is a social security legislation to provide for provident fund, family pension and insurance to employees. Employee has to pay contribution towards the fund. Employer also pays equal contribution. The employee gets a lump sum amount when he retires, which will be useful to him after
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• Thus if factory is covered the head office and branches will also be covered under the Act.

Act not applicable to certain establishments:-
As per section 16(1), the PF Act does not apply to

• Any establishment registered under Cooperative Societies Act or State Law relating to Cooperative societies, employing less than 50 persons and working without paid of power.
• To any establishment belonging to or under Control of Central Government or State Government and whose employees are entitled to benefit of contributory provident fund or old age pension.
• To any establishment set up under any Central or State Act and whose employees are entitled to benefit of contributory provident fund or old age pension.

Where PF Act is not applicable:- The Pf Act is not applicable to certain establishments
• Factories or establishments employing less than 20 employees. However, once Act becomes applicable, it continues to apply even if subsequently, the number is lower than 20.
• Banks doing business in more than one state, Coal mines, units established under Cooperative Societies Act employing less than 50 workers and working without aid of power
• Other establishments belonging to or under control of Central Government of State
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