Statutory Compliance - PF and Gratuity

INDEX
1. Provident Fund Act 1952 2. Payment of Gratuity Act, 1972
Presented by Husna Sadiya September 21, 2011
Provident Fund
I. Employees Provident Fund is set up under the Central Act viz. Employees Provident Funds & Miscellaneous Provisions Act, 1952, in the year 1952.
II. It is applicable throughout the country (except Jammu & Kashmir). III. It is applicable to almost all establishments falling under the industries/class of establishments, wherein 20 persons are employed.
IV. Provident Fund benefits are provided under the Employees Provident Funds Scheme 1952.
V. Pension benefits are provided under the Employees Pension Scheme, 1995.
VI. Insurance Benefits are provided under the Employees Deposit Linked Insurance Scheme 1976.
VII. A member of Employees Provident Fund is automatically eligible for Pension and Insurance benefits without paying any additional amount
WHY PF
Provident Fund
is a Social Security Benefit to employees. It is a compulsory saving by an employee during his employment. It is meant for old age. This is required to be availed on retirement from service. An employee who contributes to Provident Fund is also eligible to receive a matching contribution from his employer. Your Provident Fund is named as "Employee's Provident Fund"
Calculations: P.F from Basic

Employee: 12% (P.F) Employer: 3.67% Provident Fund (A/c 1) + 8.33% Pension (A/c 10) + 1.10% Admin Charges on PF (A/c 2) + 0.50% EDLI (A/c 21) + 0.01% Admin Charges on EDLI (A/c 22) =>13.61% on basic
* Pension (8.33% or 541/- which ever less)
Returns to be filed by the employer

Form No. Due Date Details to be filled up Initial Returns to be filed on receipt of coverage notice While applying for Name of the establishment, its coverage/Immediately on legal set up (i.e. receipt of coverage notice Company/Partnership/ Proprietorship/Society etc.), Form 5A Name of the person responsible for the day-to-day affairs of the establishment etc Remarks Fresh Form-5A is required when there is change of ownership or legal set up of the establishment
Within 15 days of receipt This form is available in a book The details of the persons of coverage notice format. The details of employees subsequently enrolled are to be enrolled as on the date of informed to EPF Office through coverage to be filled in. Copy may Form-5 and the office will update the Form 9 be kept by employer. information. The employer is required to keep his copy of form-9 also updated. Within 15 days of receipt Details of members/ of coverage notice for all nominee/family members of the the employees on roll. For employee. All the columns the employees should be filled up with one ink Form 2 subsequently joining, the and no correction is allowed. Form is to be sent along with Form-5 This form is very important to avoid disputes in case of death of the employee. Therefore, proper care should be taken in filling up the form and sending it to EPF Office in time.
Continued
Form No. Due Date Monthly returns 25th of the subsequent month (i.e. the due date for the wage month of Form 12A October is 25th Nov ) Details to be filled up This is a consolidated information of a particular month. The total number of employees on roll, additions/deletions during the month, the wages and contribution under each Scheme and date of remittance Details of employees newly Employer to update his copy of enrolled during the month. The Form-9 with the details. Form-5 details to include the previous should invariably accompanied by service also. Form-2 (nomination form) Remarks
Form 5
25th of the subsequent month (i.e. the due date for the wage month of October is 25th Nov )
Form 10
25th of the subsequent Details of employees left service Employer to update his copy of month (i.e. the due date during the month. Form-9 with the details. for the wage month of October is 25th Nov ) Details of employees, wages, Contribution to be remitted in contribution and charges under State Bank of India on or before each Scheme calculated 15th separately
25th of the subsequent Triplicate copy month (i.e. the due date of challan for the wage month of October is 25th Nov )
Continued
Form No. Annual Returns
Due Date
Details to be filled up
Remarks
Form 3A
30th April every year Monthly wages and One form for each contribution (employees employee. Form 3A in and employer ) respect of employees applying for settlement during the year to be submitted along with claim form.
30th April every year Consolidation of 3A. As including submitted g the year in respect employees Form Copy to be kept by employer those durin of left
Form 6A
Regular Activities
Sl # 1 Time of Joining Activities Forms Form 2 Form 10C (pension) & 19 PF
Withdrawers Form 13
3 4
Transfer 3A, 6 Employee register Form 31
5 7 a b c
For advance In case of employee expired / dead For claiming benefits under Pension For Claiming EPF Contributions For Claiming EDLI benefits, nominee will get benefit
Form 10 D Form 20 Form 5 (IF) Form 9 Form 5 Form 10 Form 12 A 3A
8 Register of employers - Application for review filed Monthly Returns 1 New Joinees List 2 Resigned employees list 3 All information and employees list of contribution Annual Returns 1 2 Individual Computation sheet Consolidated Annual Contribution Statement
6A
Payment of Gratuity Act, 1972

Principle?
By faithful service over a long period, the employee is entitled to claim a certain amount as a retirement benefit. Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least 5 full years of service with an employer to qualify for gratuity.
Rate of Gratuity
Gratuity = 15 days wages =
(based on last salary drawn)
Every completed years of service * 15 days wages
{(Monthly Basic + DA) /26} * 15 days

Shall not exceed Rs. 3,50,000 as per Act & it is not taxable
Maximum gratuity
Application for Gratuity

An employee or his/her nominee shall write to the employer within 30 days from the date the gratuity become payable or shall be applied before 30 days if date of superannuation is known. If it is not paid by the employer within 30 days, then he shall pay simple interest as prescribed by Central Government. The grievances are redressed by controlling authority and the collector shall recover the gratuity amount + compound interest from the employer

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INDEX

1. Provident Fund Act 1952 2. Payment of Gratuity Act, 1972

Presented by Husna Sadiya September 21, 2011

Calculations: P.F from Basic

Returns to be filed by the employer

Form No. Annual Returns

Transfer 3A, 6 Employee register Form 31

Form 10 D Form 20 Form 5 (IF) Form 9 Form 5 Form 10 Form 12 A 3A

Payment of Gratuity Act, 1972

Every completed years of service * 15 days wages

{(Monthly Basic + DA) /26} * 15 days

Application for Gratuity

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