EMPLOYEES PROVIDENT FUND & MISCELLANOUS PROVISIONS ACT, 1952
- Every establishment which is a factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed and
- Any other establishment employing 20 or more persons which Central Government may, by notification, Specify in this behalf. (Infancy period of 3 years has been withdrawn by ordinance, w.e.f. 22-9-97)
- Any establishment employing even less than 20 persons can be covered voluntarily u/s 1 (4) of the Act.
- Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment where salary upto र15,000/-p.m. and optionally covered where saIary exceeds र15,000/- p.m. w.e.f. 01.09.2014
- Any person who is classified as disabled employee under new para 82 of the Employees' Provident Fund Scheme, 1952 and working in the private sector, with monthly wages upto र 25,000/- per month provided they are appointed on or after 01.04.2008.
- Any person who is classified as International worker under new para 83 of the Employees’ Provident Fund Scheme, 1952.
- Any new joinee who is drawing salary Rs. 15001/- & above w.e.f. 1-9-2014, are not entitled for Pension Scheme.
Employees covered enjoy a benefit of Social Security in the form of an unattachable, unwithdrawable (except in severely restricted circumstances like buying house, marriage/education etc.) Financial nest egg to which employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death. Other Benefits include Employees' Pension Scheme and Employees' Deposit Linked Insurance Fund.
Liable to be arrested without warrant being a cognisable offence. Defaults by employer in paying contributions or inspection / administration charges attract imprisonment up to 3 years and fines up to र 10,000 (S.14) For any retrospective application, all dues have to be paid by employer with damages up to 100% of arrears.
EMPLOYEES' PROVIDENT FUND SCHEME STARTED W.E.F. 15-11-52
|SALARY SLAB||RATE OF CONTRIBUTION FOR LESS THAN||RATE OF CONTRIBUTION FOR 50 OR MORE EMPLOYEES||ADM. CHARGES||INSPECTION CHARGES IN R/O EXM. ESTT.||ELIGIBILITY PERIOD OF MEMBERSHIP|
|( र 1000/- ) from 01.01.1961 to 30.11.1976||(6.1/4%) from 01.11.1952 to 31.07.1988 (For less than 50 Employees)||(6.1/4%) from 01.01.1952 to 31.12.1962 (For 50 or more Employees)||(0.37%) from 01.01.1952 to 30.09.1986 (min. र 5/- w.e.f. 1.12.78)||(0.09%) from 01.01.1952 till date||(240 days / 12 months) from 01.01.1952 to 31.08.1974|
|( र 1600/- ) from 01.01.1976 to 31.08.1985||(8.1/3%) from 01.08.1988 to 29.09.1997 (For less than 50 Employees)||(8%) from 01.01.1963 to 01.08.1988 (For 50 or more Employees)||(0.65%) from 01.10.1986 to 31.7.1998||(0.09%) from 01.11.1952 to 31.7.1998||(120 days / 6 months) from 01.09.1974 to 31.01.1981|
|( र 2500/- ) from 1.09.1985 to 31.10.1990||(10%) from 22.09.1997 till date||(8.1/3%) from 01.08.1988 to 31.05.1989 (For 50 or more Employees)||(1.10%) from 01.8.1998 till date||(0.18%)(0.09%) from 01.8.1998 till date||(60 days / 3 months) from 01.02.1981 to 31.10.1990|
|( र 3500/- ) from 1.11.1990 to 30.09.1994||(10%) from 01.06.1989 to 30.04.1997 (For 50 or more Employees||(0.85%) from 01.1.2015||on Dt. of joining from 01.11.1990 But as per CPFC Circular w.e.f. 1-5-95|
|( र 5000/- ) from 01.10.1994 to 31.05.2001||(10%) from 01.05.1997 to 21.09.1997 10% for 20 and above wef 01.05.1997||on Dt. of joining from 01.11.1990 But as per CPFC Circular w.e.f. 1-5-95|
|र 5000/-||(12%) from 22.09.1997 to 31.05.2001|
|( र 6500/- ) wef 01.06.2001||(12%) from 1.06.2001|
|( र 15000/- ) wef 01.09.2014|
I. BENEFITS UNDER EMPLOYEES' PROVIDENT FUND SCHEME
|1.||Advance for||Purchase of Dwelling Site.|
|2.||Advance for||Purchase of a Dwelling House/Flat.|
|3.||Advance for||Construction of a House.|
|4.||Advance for||Repayment of housing loan to state govt. housing board or any other govt. recognised housing finance body.|
|5.||Advance for||Illness viz. Hospitalisation for more than a month, major surgical operations or suffering from T.B. leprosy, paralysis, cancer, heart ailment etc.|
|6.||Advance for||Marriage of Self/Son/Daughter/Sister/Brother.|
|7.||Advance for||Post Matriculation Education of Son/Daughter.|
|8.||Advance for||Damage to the property Due to Natural Calamity (Flood/Riot/Earthquake).|
|9.||Advance for||Member affected by cut in the supply of Electricity.|
|10.||Advance for||Member who is physically handicapped.|
A member employee can also withdraw full amount standing to his credit. In fund (para 69)...
a. On Resignation. b. on Retirement from the service on attaining the age of 55 yrs. c) on Retirement on account for permanent or total incapacity to work. d) immediately before Migration from India for permanent settlement abroad or for taking up employment abroad. e) on Termination due to voluntary retirement scheme, retrenchment, closure of the factory/establishment.
- W.e.f. 1.1.2015, PF administrative charges have been reduced from 1.10% to 0.85% and the minimum administrative charges payable are Rs. 75/- per month for non-functional establishments having no contributory member and Rs. 500/- per month for other establishments.
- Central Government has made it Mandatory for employees to pay statutory contributions electronically through internet Banking through 56 Banks.
- CPFC has made the registration of Digital Signature certificate of the authorised Signatories of the establishments with EPFO Mandatory for estt. having employees above 50.
- The practice of affixing revenue stamp on claim forms has been discontinued with immediate effect in case the claim amount is to be paid through NEFT.
- EPFO has provided the facility to fill up form 5A through employer login or ECR portal of www.epfindia.com
- New Declaration form has to be Mandatorily obtained from new joiners.
- Universal Account No. (UAN) is to be allotted to each PF Contributing employee.
- W.e.f. 01.12.2015, the employees whose detail like AADHAR Number and Bank Account Number have been seeded in their UAN have been activated, may submit claims in Form 19, Form 10C directly to the Commissioner without attestation of their employers, In such form and manners as may be specified by the Central Provident Fund Commissioner for settlement of claims.”
- W.e.f. 01.02.2016 , the concession of grace period of 5 days available to the employers for depositing the contribution and other dues is withdrawn.
Vide notification 10th February, 2016, the Ministry introduced Incentive Refund Schemes for those employers who provide UAN with 100% seeded KYC to all its employees in the EPF Scheme, 1952. The features of the Scheme are –
- The Incentive Refund Scheme shall be in operation for one year beginning from 1st January, 2016 to 31st December, 2016 (i.e. for the quarters beginning January, 2016, April, 2016, July, 2016 & October, 2016).
- Only such establishments shall be considered eligible for the scheme of refund which have in each month of the quarter achieved the criteria for qualification as specified either in incentive Refund Scheme ‘A’ or Scheme 'B'
- The eligible employers can claim 10% or 5% (as applicable) refund of administrative charges paid during the quarters.
- On 30th March, 2016, EPFO issued a clarification on Coverage of Banks under the Act. As per notification issued on 10th February, 2016 by the Ministry, under Sec. 1(3) (b), Banks have been notified as a class of establishment. Thus making the Act applicable to all banks employing 20 or more employees.
- W.e.f. 1st June, 2016 the threshold limit of PF withdrawal was raised from Rs. 30,000/- to Rs. 50,000/- for Tax Deducted at Source (TDS). (Section 192A of the income Tax Act)
- W.e.f. 7the June, 2016, a new payment platform viz. Pay Gov was inserted as an approved method for online payment of PF contributions. (Para 38 & 48)
- W.e.f. 23rd June, 2016, a new Form 10D UAN was introduced wherein, employees whose Aadhar No. and Bank A/c. no. are seeded and digitally approved by the Employer can directly submit the said Form to the concerned EPF Office along-with a cancelled cheque. Employer attestation on such Form is not required.
W.e.f. 9th August 2016, Government of India launched Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) in order to incentivise employers for generation of new employment. The salient features & benefits available under the Scheme are –
- All establishments registered with EPFO can apply for availing the benefit.
- Such establishments should also have LIN allotted to them under Shram Suvidha Portal as it will be the primary reference number for communication purpose
- Registration on PMRPY Portal is mandatory to avail benefit [EPFO site Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)]
- Government will be paying 8.33% EPS contribution of the employer for new employees’ upto 3 year, provided they continue in employment by the same employer.
- The 8.33% contribution will be paid by GOI after the employer has remitted the 3.67% EPF contribution.
- The PMRPY online form is to be submitted by 10th of the following month.
- Textile sector establishments with NIC codes 1410 & 1430 are eligible to get 3.67% of EPF contribution also along-with EPS contribution.
- New employee under the Scheme is an employee earning less than Rs. 15,000/- p.m., who was not working in any EPFO registered establishment in the past and did not have a UAN prior to 1st April, 2016.
- In case establishments are registered with the EPFO after 1st April, 2016, the reference base would be taken as nil and all the eligible new employees will be covered under the Scheme.
- The new eligible employees should have a valid Aadhar linked UAN
- w.e.f. 26th August, 2016, EPFO introduced a new declaration form which is to be submitted along-with For 31 & Form 31 (UAN). In case of Form 31 (UAN), employer attestation on the form is not required.
- w.e.f. 23rd September, 2016, EPFO introduced a new Declaration Form (New Form 11). This new form is to replace Form 13 (Transfer application) in those cases only where the KYC of the concerned employees (i.e. PAN, Aadhar No. & Bank A/c. Details) have been verified & digitally approved by the Employer. Also, this form can be filled online through the UAN Member Portal.
Ministry of Labour & Employment has issued Notification regarding amendments under Para 72(6) of the EPF Scheme, 1952 pertaining to “Inoperative Account” which is effective from 11th November, 2016. As per said Notification, following are the new provisions under the Inoperative Account;
Accumulation in respect of a member can be transferred to Inoperative Account after 36 months non contributory service, in the following circumstances;
- If he has retired from service after attaining the age of 55 years, or
- If he has migrated abroad permanently, or
- If he dies
but no application for withdrawal under Para 69 or 70 has been preferred within a period of 36 months from the date it becomes payable.
- In case of receipt of supplementary contribution on account of litigation or default by the establishment, or
- A claim has been settled and is received back undelivered not due to the fault of the member,
Such contributions shall not be transferred to “Inoperative Account”.
w.e.f. 20/02/2017 EPFO has introduced composite claims forms (Aadhar and Non-Aadhar) to replace existing Claims Forms No. 19, 10C & 31 and Forms No. 19(UAN), 10C(UAN) & 31(UAN)
w.e.f 03/03/2017 EPFO has introduced composite claims form in Death cases to replace existing Claim Form 20, 10-D and 5-1F
DETAILS ABOUT THE AVAILABILITY OF THE ADVANCES PROVIDED UNDER THE EMPLOYEES PROVIDENT FUND SCHEME AND THE DOCUMENTS REQUIRED FOR THE PURPOSE
|TYPES OF BENEFIT||CONDITION||AMOUNT RECEIVABLE||DOCUMENT REQUIRED|
|1. Withdrawal from the fund for(Para 68-B)|
|a. The purchase of site for construction of houses||5 yrs. of membership of the Fund||i. 24 months wages (Basic & D.A.) (OR||Original Allotment Order (in case the purchase is through agency).|
|(Min. Balance in member’s a/c should be र1000/-)||Member’s own share of contr. + Co’s share of Contribution with Interest thereon||Original Title-Deed (if) purchase is from individual Photocopy of the Registered Agreement with Seller along with Original copy for verification & return|
|b. The construction of house.||.......do.......||i. 36 months wages (Basic + D.A.) OR Members own share of contr. + Co’s share of Contribution with Interest thereon||Same as per Col. a) Photocopy of the plan approved by the Collector’s Office Municipal corporation or The Local Bodies as the case may be|
c. The purchase of dwelling flat
d. Additions, Alterations or Improvements to the dwelling house
5 yrs from the date of completion of dwelling house
12 months basic or members own share of cont. with Interest thereon.
|2. Advance from the fund for repayment of loan (para 68 BB)||10 yrs. membership of the fund & member should have taken loan from Govt. body.||36 months wages (Basic + DA) or Members own share of contr. + Co’s share of contr with Interest thereon.||A certificate from the lending authority furnishing the details of loan and outstanding amount.|
|3. Advance from the fund for illness viz. hospitalisation for more then a month, major surgical operation or suffering from T.B, .Leprosy. Paralysis. Cancer. Heart ailment etc.||Stay in Hospital at least for a month||6 months wages (Basic + DA)||A certificate from the Medical Practitioner for hospitalisation or operation.|
|4. Advance from the fund for Marriage of self son/daughter] sister/brother etc.||7 yrs. membership of the fund & min. Balance in member’s a/c should be र 1000/-||50% of member’s own share of contribution (Max. Advances allowed : 3)||Marriage Invitation Card.|
|5. Advance from the fund for post matriculation education of Son/Daughter||7 yrs. membership of the fund & min. Balance in member’s account should be र 1000/-||50% of member’s own share of contribution (Max. Advances allowed : 3)||Certificate from the institution regarding the course of study and anticipated expenditure.|
|6. Grant of advance in abnormal condition (para 68L) Natural calamities etc.||
||र 5000/- or 50% of member’s own share of contr.
(To apply within 4 months)
|Certificate from the Appropriate Authority|
RATE OF INTEREST ON MONTHLY RUNNING BALANCE AS DECLARED BY CENTRAL GOVT.
|YEAR||RATE OF INTEREST||YEAR||RATE OF INTEREST|
|2001-2002||09.50% (12% up to June 01)||2009-2010||08.50%|
|2003-2004||09.00% + 0.5 (Bonus)||2011-2012||08.25%|
RATE OF DAMAGES ON DELAYED PAYMENT OF CONTRIBUTION w.e.f. 26-9-2008
|A.||Up to 2 Months||...||@ 5% per annum|
|B.||Above 2 Months & up to 4 Months||...||@ 10% per annum|
|C.||Above 4 Months & up to 6 Months||...||@ 15% per annum|
|D.||Above 6 Months||...||@ 25% per annum|
SIMPLE INTEREST @ 12% P.A. IS CHARGED SEPERATELY ON DELAYED PAYMENT OF CONTRIBUTION
NOTE : ALL EPFO HEAD OFFICE REGIONAL OFFFICES / SAO / SRO ADDRESSES ARE AVAILABLE ON EPFO WEBSITE Viz.www.epfindia.com
EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEME, 1976
Salary Slab (upper limit), Rate of Contribution, Administrative Charges and Inspection Charges to be Borne by Employer
|SALARY SLAB||RATE OF CONTRIBUTION||ADM. CHARGES||INSPECTION CHARGES|
|र 1000/- from 01.08.1976 to 28.02.1983||0.5% from 01.08.1976 till date||0.1% from 01.08.1976 to 30.09.1987||0.02% from 01.08.1976 to 31.12.1988|
|र 1600/- from 01.03.1983 to 31.08.1985||0.5% from 01.08.1976 till date||0.01% from 01.10.1987 till date (min. र2/- w.e.f. 1.1.89)||0.005% from 01.10.1989 till date (min. र2/- w.e.f. 1.6.89)|
|र 2500/- from 1.09.1983 to 31.10.1990||.....do.....||.....do.....||.....do.....|
|र 3500/- from 1.11.1940 to 31.05.1994||.....do.....||.....do.....||.....do.....|
|र 5000/- from 01.10.1994 to 31.05.01||.....do.....||.....do.....||.....do.....|
|र 6500/- from 01.06.2001 till date||.....do.....||.....do.....||.....do.....|
|र 15000/- from 01.09.2014||.....do.....||.....do.....||.....do.....|
On the death while in service of the member, the nominee of the deceased shall in addition to PF/EPS accumulation, be paid an amount equal to the average balance in the PF accumulation of the deceased for the preceding twelve months and it the average balance exceeds र 50,000/- then the amount payable shall be र 50,000/- plus 40% in excess of र 50.000/- subject to a ceiling of र 1,00,000/- plus 20%. W.e.f. 24.5.2016, for the family members of the deceased member who was in the employment of the same establishment for a continuous period of twelve months, are entitled for benefits as under. The average monthly wages drawn during the 12 months preceding the month in which he died multiplied by thirty times plus solo of the average balance in the PF of the deceased during preceding 12 months or during the period of his membership, whichever is less, Subject to a total ceiling of 1,50,000 subject to a total ceiling of Rs. 6.00.000/-
Note : (1) w.e.f. 1.1.2015, the Minimum administrative charges payable are र 25/- per Month for non-functional establishments having no contributory member and र 200/- per Month for other establishments.
Employees Pension Scheme, 1995
Employees' Pension Scheme is a survivor, old age and disability pension scheme. The Earlier Family Pension Scheme, 1971 offered only one type of benefit, namely, survivor's benefit, i.e. payment of pension to widow/widower on death of the member in service. On the other hand, the new scheme caters for three types of contingencies:-
1. Survivor pension : If death occurs during service period 2. Old Age Pension : Pension on Superannuation. 3. Permanent Disability Pension : In the event of member suffering permanent disability while in service.
In the scheme three scales of pensionary benefits have been offered according to the length of service.
- For service below 10 years Return of contribution on exit from employment - Table -D Example: Suppose a member exits from employment after four years of service his wage on exit is र 4,000. Return of contribution will be calculated as र 4,000 x 4.18 of wages on exit i.e. र 16,720/-
- Service above 10 years but below 20 years In the first instance pension will be calculated by applying the formula. i.e. - Pensionable Salary X Pensionable service 70 Say, a member has done 18 years of pensionable Service. Pensionable Salary determined as र 4000/- Pension payable to him will be र 1029/-
- Service over 20 years: Full pension according to the formula stated above. It is to be noted here that for rendering 20 years of pensionable service or more, member’s pensionable service shall in all cases be increased by adding 2 years. In other words, 20 years actual pensionable service will be treated as 22 years of pensionable service for calculation of pension.
Special provisions for existing members:
Special provisions have been made for calculation of pension in case of member who was a member of the ceased Family Pension Scheme 1971 and who has attained the age of 48 years on the 16th November, 1995 or a member who has attained the age of 48 years but is less than 53 years on 16th November, 1995, member who has attained the age of 53 years of more on the 16th November, 1995. In the aforesaid cases the formula for calculating pension will be as follows. –
Member has not attained the age of 48 years on 16.11.1995:
Pension is determined by the above formula i.e.
Pensionable Salary X Pensionable service
For the period of pensionable service rendered from the 16th Nov. 1995 or र 635/-
Whichever is more plus past service benefits as under :-
Sr. No. Year of past service *The past service benefit payable on completion of 58 years of age on 16.11.95 Salary up to र 2,500/- p.m. Salary more than र 2,500/- p.m. (1) (2) (3)
- Up to 11 yrs.
- More than 11 yrs. but up to 15 yrs.
- More than 15 yrs.
- Beyond 20 yrs.
80 95 120 150 85 105 135 170
* To arrive at past service benefit, payable on the completion of 58 years of age on 16.11.1995 under column (2) & (3) above, shall be multiplied by the factor given in Table-B corresponding to the period between 16.11.1995 and date of attainment of age 58. Subject to a minimum of र 800/- per month provided the past service is 24 years. If the member's aggregate service is less than 24 years, Pension and the benefits computed as above will be reduced proportionately to a minimum of र 450/- per month.
Member has attained the age of 48 years but less than 53 years on 16.11.1995
Pension as determined by the above mentioned formula i.e.
Pensionable Salary X Pensionable service
for the period of service rendered from 16.11.1995 or र438/-per month whichever I more plus past service benefit as laid down in Para 12 (3) subject to a minimum of र 600/- per month, in case the past service is 24 years. If it is less than 24 years, pension payable and the past service benefit taken together shall be proportionately less subjectto a minimum of र325/- p.m.
Member has attained the age of 53 years or more on 16.11.1995
Pension as determined by the above mentioned formula i.e.
Pensionable Salary X Pensionable service
for the period of service rendered from 16.11.1995 till the date of exit or र335/- p.m. whichever is more plus past service benefit as provided in para 12 (3) subject to a minimum of र500 /-p. m. (both together) in case past service period is 24 years. If it is less than 24 years pension payable and the past service benefit shall be proportionately lesser subject to a minimum of र265/- p.m.
- Member has not attained the age of 48 years on 16.11.1995: Pension is determined by the above formula i.e. Pensionable Salary X Pensionable service 70 For the period of pensionable service rendered from the 16th Nov. 1995 or र 635/- Whichever is more plus past service benefits as under :-
- EARLY PENSION ON CESSATION OF EMPLOYMENT Old age pension on account of superannuation/retirement is normally payable on attaining the age of 58 years. However, member cannot opt for taking earlier than 58 years on his exit from employment but under no circumstances pension will be payable before the age of 50 years. A member who desires to draw monthly pension from a date earlier than 58 years of age will be allowed to draw a monthly reduced pension. The amount of pension in such a case shall be reduced at the rate of 4% (Earlier3%) for every year the age falls short of 58 years.
- SCHEME CERTIFICATE There are occasions when a member may leave employment and or may move from a covered establishment to an uncovered establishment before he reaches the date of superannuation, he may opt for a Scheme Certificate. The certificate will indicate his pensionable salary and the amount of pension due on the date of exit from employment. If the member is subsequently employed in a covered establishment, his pensionable service in the scheme certificate will be taken into account for working out his full pensionable service.
- Widow pension is of three categories. (i) of death of, the member during service (ii) on the death of the member after leaving service but before attaining the age of 58 years and (iii) in case of death of the member after commencement of payment of monthly members pension.
- Widow pension on death of the member during the service is equal to monthly members pension.
The essential conditions for grant of widow pension are as follows: -
- The death of the member occurred while in service.
- The member has contributed at least one month's contribution.
- The member had not attained the age of 58 years.
- The death of the member had taken place before the commencement of monthly members pension.
Example 1: Mr. 'X', a worker in an establishment, became member of the Employees Pension Scheme on 2nd January 1996, He died in February 1996 after a short illness. His wages at the time of death was र1, 500/- p.m. He left behind his widow aged 22 years and a child aged 1 year. What will be the widow pension in this case?
It is confirmed that pension contribution for Mr. 'X' was paid by the employer for the month of January 1996. Widow Pension entitlement.
- Pensionable service One month Pensionable salary र 1500/- Either
pension according to the formula:
Pensionable Salary X Pensionable service i. e. 1 x 1500 = र1.78 70 12 70
Or ii. Minimum pension payable as per para 16 (2) (a) (i) of the Scheme-र450/- p.m.
- (iii) The amount indicated in table ‘C’- र 718/- per month – whichever is more. Since (iii) is more than (i) & (ii), Widow pension will be fixed at र 718/- per month for life or remarriage of the widow, whichever is earlier.
For the child, 25% of the widow pension will be granted as monthly pension i.e. 25% of र 718 = र 179.50 or र 180/- p.m., till 25 years of age.
Example 2: Mr. ‘Y’ Joined Family Pension Scheme in January 1972. He died while in service, say, on 30 March 1998. He was drawing a salary of र 2,500/- p. m. from January'97 till death. He had attained the age of 48 years at the time of his death. He left behind the widow, two sons – one aged 16 years, one 7 years and one daughter aged 20 years. What would be the widows pension and children pension, payable?
(i) Mr ‘Y’ had done 26 years 3 months of pensionable service at the time of his death. In calculation of eligible service for pension, fraction of three months will be ignored as per explanation to para 9 (a) of the Scheme and thus eligible service will be taken as 26 years only. The average 12 months’ salary at the time of his death was र 2,500/-. Hence member's monthly pension will be:
Pensionable Salary X Pensionable service 70
- 26 X 2500 = र 928.57 or र 929/- p.m. 70 Or
- In terms of para 16(2)(a)(ii)- र 250/- p.m Or
Table 'C' - र 1087-Whichever is more.
The amount at (iii) being more than (i) & (ii), the widow pension payable will be र 1087/- for life or remarriage of the widow, whichever is earlier.
- The member left behind three children one daughter aged 20 years, one son aged 16 years and the other son age 7 years. To start with, only the elder two, the daughter and the elder son will get pension. The daughter will get pension for 5 years by which time she will be 25 years of age after 5 years of the vesting of pension. After the daughter ceases to be the beneficiary, the youngest child, then aged 12 years, will start receiving pension till the age of 25 years.
The amount of children pension will be @25% of widow pension for each of the two children, viz.
25% + 25% of र1087 or र272 + र272 for two children.
WIDOW PENSION AFTER COMMENCEMENT OF MONTHLY PENSION
In case of death of the member after vesting of pension, the amount of widow pension is payable @ 50% of the monthly member's pension subject to a minimum of र 250/- p.m. for example. Mr. 'Z' a pensioner dies at the age of 66 years leaving behind his widow aged 62 years
Mr. ’Z’ drawing pension @ र 1000/- p.m. The widow pension in this case will be र 500/- p.m.
- In case the member leaves behind any child less than 25 years of age, children pension is payable for each equal to 25% of the widow pension subject to a minimum of र 250/- p.m.
- The Minimum Monthly orphan pension which is payable where a deceased member is not survived by any widow or where pension is not payable to the widow (in case of remarriage) is subject to a Minimum of र 750/-
- In case of death of the member after vesting of pension, the amount of widow pension is payable @ 50% of the monthly member's pension subject to a minimum of र 250/- p.m. for example. Mr. 'Z' a pensioner dies at the age of 66 years leaving behind his widow aged 62 years
- COMMUTATION OF PENSION (Benefit withdrawn wef 01/07/2008)
- OPTION FOR RETURN OF CAPITAL (Benefit withdrawn wef 01/07/2008)
Summary of Benifits to existing members of paras 12(3), 12(4) & 12(5)
Vide Para of E.P.S. 1995 Age of employees as on 16.11.1995 Pension amount for service After 16.11.1995 till date Past service Benefit till 15.11.1995 If aggregate service less than 24 yrs. then the minimum MMP payable Amount as per calculation Minimum Pension Payable Min. Past Service benefit Payable for 24 years Past service If PSB is less than 24 yrs
Upto 47 yrs
48 yrs to 52 yrs
53 yrs and
On proportionate basis of the min. PSB payable or as per calculation whichever is more
If the member renders less than 10 years pensionable service on the date of exit or an attaining the age of 58 years, whichever is earlier, he is entitle for withdrawl benefit as per Table 'D' or he may opt for scheme certificate.
The existing member, i.e. member of F.P.F. shall receive additional benefit for his past service under the F.P.F. Scheme 1971, as per Table 'A' multiplied by factor given in Table 'B'.
Payment of Pension Through Banks
The pension is disbursed through Nationalised Banks of the respective state. The member/pensioner are required to open an account in the Bank where pension is desired and indicate the option in the application in Form 10-D. The Statewise list of Banks, where pension can be opted is given below.
REGION NOMINATED BANK REGION NOMINATED BANK Andhra Pradesh Andhra Bank & SBI Maharashtra Bank of India, PNB & SBI Bihar Punjab National Bank North East Region (Assam) Punjab National Bank & State Bank of India Delhi Punjab National Bank & SBI Orrisa Bank of India & SBI Gujarat Dena Bank & SBI Punjab Punjab National Bank & SBI Haryana Punjab National Bank & SBI Rajasthan State Bank of Bikaner & Jaipur, Punjab National Bank Karnataka Canara Bank Tamilnadu Indian Bank & SBI Kerala Canara Bank & SBI Uttar Pradesh PNB & SBI Madhya Pradesh Punjab National Bank & SBI West Bengal Punjab National Bank & Union Bank of India Himachal Pradesh Punjab National Bank & SBI In addition to above : HDFC, UTI & ICICI Bank for all Regions
WITHDRAWAL BENEFIT (See Paragraph 14) TABLE-A
No. of full year’s Contribution paid (1) Proportion of pay payable at cessation of membership (2) No. of full year’s Contribution paid (1) Proportion of pay payable at cessation of membership (2) No. of full year’s Contribution paid (1) Proportion of pay payable at cessation of membership (2) No. of full year’s Contribution paid (1) Proportion of pay payable at cessation of membership (2)
(1) years (2) Factor (1) years (2) Factor (1) years (2) Factor (1) years (2) Factor Less than 1 1.039 Less than 10 2.077 Less than 19 4.152 Less than 28 8.301 Less than 2 1.122 Less than 11 2.243 Less than 20 4.485 Less than 29 8.965 Less than 3 1.212 Less than 12 2.423 Less than 21 4.843 Less than 30 9.682 Less than 4 1.309 Less than 13 2.616 Less than 22 5.231 Less than 31 10.457 Less than 5 1.413 Less than 14 2.826 Less than 23 5.649 Less than 32 11.294 Less than 6 1.526 Less than 15 3.052 Less than 24 6.101 Less than 33 12.197 Less than 7 1.649 Less than 16 3.296 Less than 25 6.589 Less than 34 13.173 Less than 8 1.781 Less than 17 3.560 Less than 26 7.117 Less than 9 1.923 Less than 18 3.845 Less than 27 7.686
Salary at day of death not more than (1) Equivalent widow pension (2) Salary at day of death not more than (1) Equivalent widow pension (2) Salary at day of death not more than (1) Equivalent widow pension (2) Salary at day of death not more than (1) Equivalent widow pension (2)
Year of service Proportion of wages at exit Year of service Proportion of wages at exit Year of service Proportion of wages at exit
- w.e.f. 1.9.2014, the part of EPS contribution @ 8.33% of salary the maximum limit of which was Rs. 541/- p.m. has been increased to Rs. 1250/-
- w.e.f. 1.9.2014, employees drawing basic salary above Rs. 15.000/- are not eligible for pension.
- Vide notification dated 1st April, 2016, the Monthly Orphan Pension shall be payable to an orphan beyond the age of 25 years, if such orphan is suffering from disorder or disability of mind or is physically crippled or disabled. To avoid any ambiguity this provision has been inserted under para 16(4).
- W.e.f. 25th April, 2016 a new sub-para (7B) was introduced in para 12 of the Employees’ Pension Scheme. According to the new provision, if the member so desires, he can defer withdrawing his pension beyond 58 years but not more than 60 years. In this case, the pension amount will be increased by 4% for every completed year after 58 years. Further, the member can continue to contribute towards EPS upto the age of 60 years only.
Vide notification 19th May, 2016, the Ministry substituted the proviso of sub-para (8) of para 12 of the Employees' Pension Scheme. As per the new proviso –
- If the member does not take up an employment coverable under the Scheme and has rendered less than 10 years eligible service on the date of exit, but dies before attaining the age of 58 years & before a continuous period of 36 months has elapsed during which contributions have not been received to the Pension Fund in respect of the concerned member, then the amount of contributions received in his case will be converted into a monthly widow pension or children pension. The widow pension will be calculated as per Table C and the children pension at 25% thereof for each child (upto 2). The orphan pension will be calculated at 75% of the amount as per provisions of para 16.
If the member does not take up an employment coverable under the Scheme and has rendered less than 10 years eligible service on the date of exit, but dies before attaining the age of 58 years after a continuous period of 36 months has elapsed during which contributions have not been received to the Pension Fund in respect of the concerned member, then the family shall be entitled to benefits under para14.
This notification is applicable to only those employees who will complete 58 years of age after 1st May, 2016.
- Vide notification dated 16th June, 2016, the Ministry omitted the wordings ‘for financial year 2014-15’, thereby continuing the minimum pension amount Rs.1,000/- beyond 31st March, 2015.
- Vide notification dated 1st July, 2016, the Ministry amended para 11(4) of the Employees' Pension Scheme, wherein the wordings "and the pensionable salary for the existing members who prefer such fresh option shall be based on the higher salary" shall be inserted after the words “on salary exceeding fifteen thousand rupees per month".
- In the 7the October. 2016 circular, EPFO provided analysis for the 2 sample months of April & May 2016 in respect of employees contributing to the Pension Fund exceeding salary of Rs. 15,000/- p.m. As per papra 11(4) of the Employees' Pension Scheme, members who have opted to contribute on salary exceeding Rs. 15.000/- p.m. have to additionally contribute @ rate of 1.16% on the salary exceeding Rs. 15.000/- from & out of the contributions payable by the employees for each month. Accordingly, they have been advised to examine the compliance under para 11(4) regarding additional contribution of 1.16% & also regarding submission of fresh option for contribution on salary exceeding Rs. 15,000/- p.m. as per para 11(4).
Universal Account Number (UAN)
Employees’ Povident Fund Organisation has launched new facility i.e. Universal Account Number (UAN) for each of the Provident Fund/Pension member. The idea is to link multiple member Identification Numbers (Member id) allotted to a single member under single Universal Account Number.
For authenticating UAN, it is mandatory to upload KYC of concerned member-employee to tag the same with respective employee's UAN. This will help in eliminating the dependency on the employers Activation of UAN can be done by member with the help of the Mobile No., Bank A/C no. and lFSC Code or even Employer can carry out bulk uploading of data on behalf of employees with their Cell No., Bank A/c No. and IFSC Code No. of employee’s Bank.
Benefits of UAN
- Member get credit message whenever PF contribution is credited to their PF A/C on monthly basis.
- Member can view his/her PF balance on EPFO website(Employee E-sewa) and can also have his/her PF balance details on his/her mobile No.
Forthcoming benefits of UAN
- No need to transfer the funds from one A/c to another A/c in case of change of employment.
Online PF withdrawal facility
Also, EPFO is in the Process of implementing online PF Withdrawal. The basis of online PF Withdrawal facility would be the Unique Identiﬁcation Number (UAN) and Aadhar.
Benefits of Online PF Withdrawal
- The filing of withdrawal from would be very easy.
- The paper work will reduce. The whole process will be very fast.
- Filing EPF withdrawal without the signature of the employer would be easy.
Details regarding UAN
The UAN for each of the PF Account Number appearing in the ECR w.e.f. January 2014 to June 2014 has already been allotted by EPFO and available to employers on OTCP. Further. In respect of employees joining after 30th June 2014, the employer is required to generate Universal Account number of employees
If a member is already allotted with UAN then he / she is required to provide the same on joining new establishment to enable the employer to in-turn mark the new allotted PF/Pension numbers to the already allotted UAN, for which the employer is required to obtain all the detail in the Declaration Form in Form 11 issued by EPFO.
The newly issued Declaration Form in Form 11 will help in getting all the relevant information such as whether the member was earlier a member of EPF/EPS, details of his UAN or previous PF member ID, Scheme Certiﬁcate no., if any, PPO No., KYC Details, etc.
In view of the above, Employers should get the Declaration From in From 11 duly filled in from the members since in the absence of said information it will become difficult to generate the UAN no., Challans and transfer the PF accumulations.
Vide circular 21st September, 2016, EPFO provided for merging of multiple UAN as under –
- The members should be advised to apply for PF transfer from previous EPF account to the present EPF account.
- The system would identify such cases on periodic basis where the PF transfer has been effected from one EPF A/c. to another, both having different UANs attached to these EPF A/cs.
- All such identified UANs, from which PF transfer has been effected to PF A/c. having different UAN, would be deactivated (the mobile number would be released by the system for use by the member) and UAN would be blocked for further use. This would be done in respect of all identified UANs even when no request has been received from the member.
- The previous member ID would henceforth be linked to the new UAN.
- The member would be informed of the deactivated status of his previous UAN in case of activated UANs by SMS to the registered mobile number. He would be requested to activate the new UAN to get the updated status of his EPF account.
- In case of arrear payment by the previous employer for the member, the system would auto populate the new UAN in the ECR on punching of previous UAN or member ID and the statutory contribution by the employer against the arrears can be remitted against new UAN only.
- Vide Circular dated 27th October, 2016, EPFO has proposed process under UAN as per which UAN requires the allotment of UAN upfront and the ECR can be filed only in case of such members where UAN has either been allotted to member or the previous UAN has been linked to his present employment.
Key features of next version of UAN
- UAN is the key field in Electronic Challan cum Return (ECR)
- For a member joining EPF for the first time, the UAN would be obtained by the employer or member prior to filing of ECR by the employer for that member.
- The employer would furnish the member's details on the basis of the KYC documents i.e. Aadhaar, PAN, Bank Account etc. to avoid future issues about member's name, name of father/spouse, date of birth, etc.
- The UAN would be allotted upfront on the portal and would be validated in the ECR file of the employer at the time of its submission.
- Also for a member who was earlier a member of EPF prior to joining the present establishment, the linking of the existing UAN of the member should necessarily be done by the employer before filing of UAN based ECR.
- The member’s details as available in the provided UAN i.e. name of member, data of birth, Father's/Husband's name would be used in the ECR of the present employment.
- The generation / linking of UAN can be done through an online functionality on UAN portal.
- This would be mandatory for the employer to include the new members in the ECR.
- The employer may start remitting dues through ECR for the linked UAN thereafter.
BRIEF NOTE ON INTERNATIONAL WORKERS UNDER EMPLOYEES' PROVIDENT FUNDS SCHEME, 1952
W.e.f. 1st November, 2008, it has been made compulsory for International Workers to contribute to Indian Social Security.
- International Worker's is defined as;
- An Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under a social security programme of that country by virtue of the eligibility gained or going to gain, under the said agreement; or
- An employee, other than an Indian employee, holding other than an Indian passport and working for an establishment in India to which the Provident Fund Act applies.
- The worker who is a Nepalese national on account of Treaty of Peace and Friendship of 1950 and the worker who is a Bhutanese national on account of India Bhutan Friendship Treaty of 2007, shall be deemed to be an Indian worker.
- At present, India has entered into social security agreement with Belgium, France, Germany, Luxembourg, Switzerland, Denmark, Korea, Netherland, Hungary, Sweden, Finland, Czech Republic, Canada, Austria, Australia, Japan and also has entered into comprehensive economic agreement with Singapore.
- As per the comprehensive economic Agreement entered between Singapore and India, natural persons of either party who are granted temporary entry into the territory of the either party shall not be required to make contributions to social security funds in the host country.
- International workers are also their employees contribute @ 12% on the monthly PF salary without any ceiling.
- Detachment Certificate is to be obtained from concerned embassy to avoid double contribution.
- Detachment Certificate is to be obtained from concerned embassy to avoid double contribution.
- In case wages are paid in foreign currency, State Bank of India telegraphic transfer buying rate to be used as on the last working day of the month for conversion.
- An International worker who is covered under social security agreement between India any other country can withdraw his provident fund accumulations on ceasing to be an employee in an establishment covered under the PF Act.
- International Workers from non-SSA countries can withdraw on retirement of services only on attaiment 58 years of age.
- The accumulated balance shall be paid to International Workers in India.
UNDER EMPLOYEES' PENSION SCHEME, 1995
“Pensionable Service” means the service rendered by the member for which contributions have been received or are receivable and the period of coverage earned in another country and considered as eligible under a relevant Social Security Agreement.
- w.e.f. 01.09.2014, New joinee drawing salary र 15,001/- and above shall not be entitled for Pension Scheme.
- The pensionable salary is to be determined on the average monthly pay drawn during the contributory period of service.
- Indian employees going on posting with COC do not fall under purview of IW. Hence pension contribution in respect of such employees should be limited to the wage ceiling of र 15,000/- @ 8.33%.
- The government will not contribute to the International Workers pension fund.
- No Withdrawal of benefit to International Workers from non SSA Countries.
UNDER EMPLOYEES' DEPOSIT LINKED INSURANCE SCHEME, 1976
- The Contribution is calculated upto the statutory limit of र 15,000/-