Namrata Panda

Industrial Relations and Labour Laws - 1

SR. No. Topics to be covered
1 Employees Provident Fund and Miscellaneous Provisions Act, 1952
2 The Payment of Gratuity Act, 1972
3 The Employees State Insurance Act, 1948
4 The Maternity Benefit Act, 1961
5 History, Growth and Development of Industrial Relations
6 Industrial Relation Issues in Organisations
7 Industrial Disputes Act,1947
8 Workers Participation in Management, The Trade Unions Act,1926
9 Factories Act, 1948
 Industrial Relations and Labour Laws - 2
SR. No. Topics to be covered
1 The Payment of wages Act,1936
2 The Minimum Wages Act, 1948
3 The Equal Remuneration Act,1976
4 The Apprentices Act,1961
5 The Payment of Bonus Act, 1965
6 The Shops and Commercial Establishment Act,1953
7 The Contract Labour(Regulation and Abolition Act), 1970
8 Sexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal)Act, 2013 - POSH
Employees Provident Fund
and Miscellaneous Act,
1952
Objective

• To provide compulsory establishment of Provident Fund by every

employer for the betterment of the employees and their families

• An act to provide for the institution of Provident Fund, Pension fund

and Deposit Linked insurance for employees in factories and other
establishments

• Main aim is to help employees save a fraction of their salary every

month to be used in an event that may be temporary or in case of
Retirement
Employees Provident Fund and Miscellaneous Act, 1952

22 Sections and 4 Schedules

The Employees Provident Fund came into existence with the enactment
of Provident Fund Ordinance in 1951
The EPF ordinance was replaced by EPF Act,1952. The bill was passed by
Parliament in 1952 and got the ascent of the President on 4th March,
1952.
Welfare scheme for the benefit of the employees
The act is administered by the Tripartite board called as Central Board of
Trustees. It has representatives from Government (Central and State),
Employers and Employees.
Structure of the Scheme
• There are 3 components of the scheme
• The Employees Provident Fund Scheme (EPF), 1952 – Contribution by
Employer and Employee

• The Employees Pension Scheme (EPS), 1995 – Contribution by Employer

• The Employees Deposit Linked Scheme (EDLI), 1976 – Contribution by

Employer
Applicability (Sec 1)

• It extends to whole of India except in the state of Jammu and Kashmir

• To every establishment which is a factory engaged in any industry specified in

Schedule 1 and in which 20 or more persons are employed

• To any other establishment employing twenty or more persons or class of such

establishments which the Central Government may, by notification in the Official
Gazette, specify in this behalf:
• Provided that the Central Government may, after giving not less than two
months’ notice of its intention so to do, by notification in the Official Gazette,
apply the provisions of this Act to any establishment employing such number
of persons less than [twenty] as may be specified in the notification.]
Applicability (Sec 1) and Sec 2A
• Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of
section 16, where it appears to the Central Provident Fund Commissioner, whether on an
application made to him in this behalf or otherwise, that the employer and the majority of
employees in relation to any establishment have agreed that the provisions of this Act should
be made applicable to the establishment, he may, by notification in the Official Gazette, apply
the provisions of this Act to that establishment on and from the date of such agreement or
from any subsequent date specified in such agreement.

• An establishment to which this Act applies shall continue to be governed by this Act
notwithstanding that the number of persons employed therein at any time falls below twenty.

• Section 2A.
• Establishment to include all departments and branches.—For the removal of doubts, it is
hereby declared that where an establishment consists of different departments or has
branches, whether situated in the same place or in different places, all such departments
or branches shall be treated as parts of the same establishment.
 Definitions (Section 2)
• (a) “appropriate Government” means—
• (i) in relation to an establishment belonging to, or under the control of, the Central Government or in relation to
an establishment connected with a railway company, a major port, a mine or an oilfield or a controlled industry, or
in relation to an establishment having departments or branches in more than one State, the Central Government;
and
• (ii) in relation to any other establishment, the State Government;
• (aa) “authorised officer” means the Central Provident Fund Commissioner, Additional Central Provident Fund
Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner or such other
officer as may be authorised by the Central Government, by notification in the Official Gazette;]
• (b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on
holidays with wages in either case] in accordance with the terms of the contract of employment and which are
paid or payable in cash to him, but does not include—
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an
employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus
commission or any other similar allowance payable to the employee in respect of his employment or of
work done in such employment;
(iii) any presents made by the employer;

(c) “contribution” means a contribution payable in respect of a member under a Scheme or the
contribution payable in respect of an employee to whom the Insurance Scheme applies;
Definitions (Section 2)

• (e) “employer” means—

• (i) in relation to an establishment which is a factory, the owner or occupier of the factory,
including the agent of such owner or occupier, the legal representative of a deceased
owner or occupier and, where a person has been named as a manager of the factory
under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the
person so named; and
• (ii) in relation to any other establishment, the person who, or the authority which, has the
ultimate control over the affairs of the establishment, and where the said affairs are
entrusted to a manager, managing director or managing agent, such manager, managing
director or managing agent;]
• (f) “employee” means any person who is employed for wages in any kind of work, manual
or otherwise, in or in connection with the work of an establishment, and who gets his
wages directly or indirectly from the employer, and includes any person—
• (i) employed by or through a contractor in or in connection with the work of the
establishment;
• (ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices
Act, 1961 (52 of 1961), or under the standing orders of the establishment;
 Non Applicability of the Act (Section 16)
• (a) to any establishment registered under the Co-operative Societies
Act, 1912 (2 of 1912), or under any other law for the time being in
force in any State relating to co-operative societies, employing less
than fifty persons and working without the aid of power; or
• (b) to any other establishment belonging to or under the control of the
Central Government or a State Government and whose employees are
entitled to the benefit of contributory provident fund or old age
pension in accordance with any scheme or rule framed by the Central
Government or the State Government governing such benefits; or
• (c) to any other establishment set up under any Central, Provincial or
State Act and whose employees are entitled to the benefits of
contributory provident fund or old age pension in accordance with any
scheme or rule framed under that Act governing such benefits;
Categories of employees covered

• Employees drawing a salary (Basic+ DA) of less than Rs. 15000/- per
month have to MANDATORILY become members of the EPF

• Employees drawing a salary(Basic + DA) of more than Rs. 15000/- per

month can become a member of the EPF with permission from
Assistant PF Commissioner if he and his/her employer agrees
Contribution (Section 6)
• The contribution which shall be paid by the employer to the Fund shall be ten
per cent of the basic wages, dearness allowance and retaining allowance (if
any) for the time being payable to each of the employees (whether employed
by him directly or by or through a contractor), and the employees’ contribution
shall be equal to the contribution payable by the employer in respect of him
and may, if any employee so desires, be an amount exceeding ten per cent of
his basic wages, dearness allowance and retaining allowance (if any), subject to
the condition that the employer shall not be under an obligation to pay any
contribution over and above his contribution payable under this section:
• Provided that in its application to any establishment or class of establishments
which the Central Government, after making such inquiry as it deems fit, may,
by notification in the Official Gazette specify, this section shall be subject to the
modification that for the words ten per cent, at both the places where they
occur, the words twelve per cent shall be substituted
Contribution to EPS (Section 6A)
• 6A. Employees’ Pension Scheme.—(1) The Central Government may, by notification in the Official
Gazette, frame a scheme to be called the Employees’ Pension Scheme for the purpose of providing for
—
• (a) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Act applies; and
• (b) widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of
such employees.
• (2) Notwithstanding anything contained in section 6, there shall be established, as soon as may be after
framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in
respect of every employee who is a member of the Pension Scheme,—
• (a) such sums from the employer’s contribution under section 6, not exceeding eight and one-third per
cent of the basic wages, dearness allowance and retaining allowance, if any, of the concerned
employees, as may be specified in the Pension Scheme;
• (b) such sums as are payable by the employers of exempted establishments under sub-section (6) of
section 17;
• (c) the net assets of the Employees' Family Pension Fund as on the date of the establishment of the
Pension Fund;
• (d) such sums as the Central Government may, after due appropriation by Parliament by law in this
behalf, specify.
Contribution to EDLI (Section 6B)
• 6C. Employees’ Deposit linked Insurance Scheme.—(1) The Central
Government may, by notification in the Official Gazette, frame a scheme
to be called the Employees’ Deposit-linked Insurance Scheme for the
purpose of providing life insurance benefits to the employees of any
establishment or class of establishments to which this Act applies.
Contribution(Section 6)

- 10% rate is applicable for

- Any establishment in which less than 20 employees are employed.
- Any sick industrial company and which has been declared as such by the Board for Industrial and Financial
Reconstruction
- Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its
entire net worth and
- Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.

 EPF also allows Contribution beyond the statutory requirements by the employee if he/she wishes to.
 An employee can contribute upto 88%/90% (statutory deduction of 12%/10% as the case may be) of the
basic salary +DA
Recovery from Employers and Contractors (Section
8A)
• 8A. Recovery of moneys by employers and contractors.—
• (1)The amount of contribution (that is to say the employer’s contribution as well as the
employee’s contribution in pursuance of any Scheme and the employer’s contribution in
pursuance of the Insurance Scheme), and any charges for meeting the cost of
administering the Fund paid or payable by an employer in respect of an employee
employed by or through a contractor may be recovered by such employer from the
contractor, either by deduction from any amount payable to the contractor, under any
contract or as a debt payable by the contractor.
• (2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered
in respect of any employee employed by or through him, may recover from such employee
the employee’s contribution under any Scheme by deduction from the basic wages,
dearness allowance and retaining allowance (if any) payable to such employee.
• (3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct
the employer’s contribution or the charges referred to in sub-section (1) from the basic
wages, dearness allowance, and retaining allowance (if any) payable to an employee
employed by or through him or otherwise to recover such contribution or charges from
such employee.
Protection against attachment (Section 10)
• 10. Protection against attachment.—
• (1) The amount standing to the credit of any member in the Fund or of any exempted employee in
a provident fund shall not in any way be capable of being assigned or charged and shall not be
liable to attachment under any decree or order of any court in respect of any debt or liability
incurred by the member or the exempted employee, and neither the official assignee appointed
under the Presidency-towns Insolvency Act, 1909 (3 of 1909), nor any receiver appointed under
the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to, or have any claim on, any such
amount.
• (2) Any amount standing to the credit of a member in the Fund or of an exempted employee in a
provident fund at the time of his death and payable to his nominee under the Scheme or the rules
of the provident fund shall, subject to any deduction authorised by the said Scheme or rules, vest
in the nominee and shall be free from any debt or other liability incurred by the deceased or the
nominee before the death of the member of the exempted employee [and shall also not be liable
to attachment under any decree or order of any court.
• (3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to
the family pension or any other amount payable under the [Pension] Scheme [and also in
relation to any amount payable under the Insurance Scheme] as they apply in relation to any
amount payable out of the Fund.]
Priority of Payment of contribution over other debts (Section 11)
• 11. Priority of payment of contributions over other debts.—
• (1) [Where any employer is adjudicated insolvent or, being a company, an order for winding up is made, the amount due
— (a) from the employer in relation to an establishment] to which any Scheme or the Insurance Scheme applies in respect
of any contribution payable to the Fund or, as the case may be, the Insurance Fund, damages recoverable under section
14B, accumulations required to be transferred under sub-section (2) of section 15 or any charges payable by him under
any other provision of this Act or of any provision of the Scheme or the Insurance Scheme; or
• (b) from the employer in relation to an exempted establishment in respect of any contribution to [the Provident Fund or
any Insurance Fund (in so far it relates to exempted employees), under the rules of [the Provident Fund or any Insurance
Fund], any contribution payable by him towards the Family Pension Fund under sub-section (6) of section 17, damages
recoverable under section 14B or any charges payable by him to the appropriate Government under any provision of this
Act or under any of the conditions specified under section 17 shall, where the liability thereof has accrued before the
order of adjudication or winding up is made, be deemed to be included] among the debts which under section 49 of the
Presidency-towns Insolvency Act, 1909 (3 of 1909), or under section 61 of the Provincial Insolvency Act, 1920 (5 of 1920),
or under Section 530 of the Companies Act, 1956 (1 of 1956), are to be paid in priority to all other debts in the
distribution of the property of the insolvent or the assets of the company being wound up, as the case may be.
• Explanation.—In this sub-section and in section 17, “insurance fund” means any fund established by an employer under
any scheme for providing benefits in the nature of life insurance to employees, whether linked to their deposits in
provident fund or not, without payment by the employees of any separate contribution or premium in that behalf.
• (2) Without prejudice to the provisions of sub-section (1), if any amount is due from an employer whether in respect of
the employee’s contribution (deducted from the wages of the employee) or the employer’s contribution, the amount so
due shall be deemed to be the first charge on the assets of the establishment, and shall, notwithstanding anything
contained in any other law for the time being in force, be paid in priority to all other debts.
Employer not to reduce wages (Section 12)

• 12. Employer not to reduce wages, etc.—No employer in relation to

an establishment] to which any Scheme or the Insurance Scheme
applies shall, by reason only of his liability for the payment of any
contribution to [the Fund or the Insurance Fund] or any charges under
this Act or the 11[Scheme or the Insurance Scheme, reduce, whether
directly or indirectly, the wages of any employee to whom the
Scheme or the Insurance Scheme applies or the total quantum of
benefits in the nature of old age pension, gratuity Provident Fund or
Life Insurance to which the employee is entitled under the terms of
his employment, express or implied.
 Inspectors (Section 13)
• (1) The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be
Inspectors for the purposes of this Act , the Scheme , the Pension Scheme or the Insurance Scheme, and may define their
jurisdiction.
• (2) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the correctness of any
information furnished in connection with this Act or with any Scheme or the Insurance Scheme or for the purpose of
ascertaining whether any of the provisions of this Act or of any Scheme or the Insurance Scheme have been complied
with in respect of an establishment to which any Scheme or the Insurance Scheme applies or for the purpose of
ascertaining whether the provisions of this Act or any Scheme or the Insurance Scheme are applicable to any
establishment to which the Scheme or the Insurance Scheme has not been applied or for the purpose of determining
whether the conditions subject to which exemption was granted under section 17 are being complied with by the
employer in relation to an exempted establishment—
• (a) require an employer or any contractor from whom any amount is recoverable under section 8A to furnish such
information as he may consider necessary ;
• (b) at any reasonable time and with such assistance, if any, as he may think fit, enter and search any establishment or any
premises connected therewith and require any one found in charge thereof to produce before him for examination any
accounts, books, registers and other documents relating to the employment of persons or the payment of wages in
the[establishment;
• (c) examine, with respect to any matter relevant to any of the purposes aforesaid, the employer or any contractor from
whom any amount is recoverable under section 8A, his agent or servant or any other person found in charge of the
establishment of any premises connected therewith or whom the Inspector has reasonable cause to believe to be or to
have been, an employee in the establishment;
 Inspectors (Section 13)
• (d) make copies of, or take extracts from, any book, register or other document maintained
in relation to the establishment and, where he has reason to believe that any offence
under this Act has been committed by an employer, seize with such assistance as he may
think fit, such book, register or other document or portions thereof as he may consider
relevant in respect of that offence;
• (e) exercise such other powers as the Scheme or the Insurance Scheme may provide.
• (2A) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into
the correctness of any information furnished in connection with the Pension Scheme or for
the purpose of ascertaining whether any of the provisions of this Act or of the Pension
Scheme have been complied with in respect of an establishment to which the Pension
Scheme applies, exercise all or any of the powers conferred, on him under clause (a), clause
(b), clause (c) or clause (d) of sub-section (2).
• (2B) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) shall, so far as may
be, apply to any search or seizure under sub-section (2), [or under sub-section (2A), as the
case may be,] as they apply to any search or seizure made under the authority of a warrant
issued under section 98 of the said Code (45 of 1960).]
 Penalties (Section 14)
• (1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act,the Scheme , the Pension
Scheme or the Insurance Scheme or of enabling any other person to avoid such payment, knowingly makes or causes to be
made any false statement or false representation shall be punishable with imprisonment for a term which may extend to
[one year, or with fine of five thousand rupees, or with both.
• (1A) An employer who contravenes, or makes default in complying with, the provisions of section 6 or clause (a) of sub-
section (3) of section 17 in so far as it relates to the payment of inspection charges, or paragraph 38 of the Scheme in so far
as it relates to the payment of administrative charges, shall be punishable with imprisonment for a term which may extend
to three years but—
• (a)which shall not be less than one year and a fine of ten thousand rupees in case of default in payment of the employees’
contribution which has been deducted by the employer from the employees’ wages;
• (b) which shall not be less than six months and a fine of five thousand rupees, in any other case;
• Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of
imprisonment for a lesser term .
• (1B) An employer who contravenes, or makes default in complying with, the provisions of section 6C, or clause (a) of sub-
section (3A) of section 17 in so far as it relates to the payment of inspection charges, shall be punishable with
imprisonment for a term which may extend to one year but which shall not be less than six months and shall also be liable
to fine which may extend to five thousand rupees:
• Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of
imprisonment for a lesser term Subject to the provisions of this Act, the Scheme , the Pension Scheme or the Insurance
Scheme may provide that any person who contravenes, or makes default in complying with, any of the provisions thereof
shall be punishable with imprisonment for a term which may extend one year, or with fine which may extend to four
thousand rupees, or with both.
 Penalties (Section 14, 14 A)
• (2A) Whoever contravenes or makes default in complying with any provision of this Act or of any condition
subject to which exemption was granted under section 17 shall, if no other penalty is elsewhere provided by or
under this Act for such contravention or non-compliance, be punishable with imprisonment which may extend to
[six months, but which shall not be less than one month, and shall also be liable to fine which may extend to five
thousand rupees.
• 14A. Offences by companies.—(1) If the person committing an offence under this Act , the Scheme or the
Pension Scheme or the Insurance Scheme is a company, every person, who at the time the offence was
committed was in charge of, and was responsible to, the company for the conduct of the business of the
company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly:
• Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he
proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent
the commission of such offence.
• (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, the Scheme or the
Pension Scheme or the Insurance Scheme has been committed by a company and it is proved that the offence has
been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director
or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be
deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
• Explanation.—For the purposes of this section,— (a) “company” means any body corporate and includes a firm
and other association of individuals; and (b) “director” in relation to a firm, means a partner in the firm.
 Transfer of Accounts (Section 17 A and 17B)
• 17A. Transfer of accounts.—
• (1) Where an employee employed in an establishment to which this Act applies leaves his employment and
obtains re-employment in another establishment to which this Act does not apply, the amount of
accumulations to the credit of such employee in the Fund, or as the case may be, in the provident fund of the
establishment left by him shall be transferred, within such time as may be specified by the Central
Government in this behalf, to the credit of his account in the provident fund of the establishment in which he
is re-employed, if the employee so desires and the rules in relation to that provident fund permit such transfer.
• (2) Where an employee employed in an establishment to which this Act does not apply leaves his employment
and obtains re-employment in another establishment to which this Act applies, the amount of accumulations
to the credit of such employee in the provident fund of the establishment left by him may, if the employee so
desires and the rules in relation to such provident fund permit, be transferred to the credit of his account in
the Fund or as the case may be, in the provident fund of the establishment in which he is re-employed.]
• 17B. Liability in case of transfer of establishment.—
Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift,
lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is
so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer
under any provision of this Act or the Scheme or the Pension Scheme or the Insurance Scheme, as the case may
be, in respect of the period up to the date of such transfer:
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such
transfer.
 Universal Account Number (UAN)

 It is a 12 digit number allotted to the employee who is contributed to EPF.

 It remain same throughout the life of the employee. It does not change with
the change of Job.
 The UAN will act as an umbrella for the multiple Member Ids allotted to an
individual by different establishments.
 Linking of Aadhar with UAN is compulsory now.
 It will help in easy transfer and withdrawals of claims. Along with the service
of Online Passbook, SMS Service on each deposit of contribution & online
KYC update can be provided on the basis of UAN. But before that UAN
need to be activated on EPFO portal.
Withdrawal of Provident Fund

In case a member withdraws his EPF and has rendered less than 5 years of service and
accumulated amount is more than Rs. 50,000/, TDS shall be applicable on the following rates:-

Submission of PAN Non submission of PAN No TDS deducted in case of

If 15G/15H is submitted, no TDS is Transfer of Fund
deducted TDS is deducted at Maximum Payment of advance
If 15G/15H is not submitted, TDS Marginal Rate (34.606%) Service is terminated by employer
deducted at 10% beyond control of employee
Non Refundable Advances from Provident Fund
Para
of EPF
S.N. Sche Purpose Eligibility Amount admissible
me
1952
Financing of
A policy in the name of the member.
1. 62 Member’s Life Employees’ share should have sufficient balance to pay the premium.
Policyshouldbe legally assigned to CBT (EPF).
Insurance Policies

68-B, Purchase of Twenty four months wages & DA or total balance in PF account(Employees’ +Employer) or total
68- House/flat, Five years membership of the Fund. cost, whichever is less. After five years another part withdrawal equal to 12 months wages & DA
2.
BC,68 including acquisition Employees’shareis more than Rs 1,000/- or employees’ share for addition/alteration. After ten years from the original sanction, another
- BD of land. part withdrawal equal to 12 months wages & DA or employees’ share for addition/alteration.

Loan should have been taken from notified

Repayment of agencies. 10 years membership of Fund. Thirty six months wages & DA or total balance in PF account (employees’ + employer share) or
3. 68-BB
housing loan. employees’ share in PF account should be total outstanding loan & interest thereon, whichever is less
more than Rs 1,000/-

Purchase of
House/flat, Five years membership of the Fund.
4. 68-BC Total balance in PF account office member or cost of acquisition, whichever is less.
including acquisition employees’ share is more than Rs 20,000/-
of land.

Purchaseof
Three years membership of the Fund. Member
House/flat, 90% of PF accumulation (both shares) or cost payable, whichever is less.
5. 68-BD of a registered Cooperative Society. Employees’
including acquisition Employees’share is more than Rs 25,000/-
share is more than Rs 25,000/-
of land.
 Non Refundable Advances from Provident Fund
Para of EPF
S.N. Scheme Purpose Eligibility Amount admissible
1952

If establishment / Employee receives no compensation

6. 68-H factory is closed/locked or has not got wages for two months Upto 100% of employees’ share.
down or more.

If the employee
remains unemployed Unemployment should be more than
7. 68HH Upto 75% of total PF balance.
for more than one one month
month

Hospitalization for more than one

8. 68-J Illnessof self and family month, major illnesses or major Basic Wages & DA for six months or employees’ share, whichever is less.
surgery.

Marriage (self ,children Sevenyears’ membership of fund.

,brother & sister) or employees’ share in PF balance is
9. 68-K 50% of employees’ share.
post matriculation more than Rs 1,000/- Only three
education of children withdrawals allowed.

Natural calamity declaration by State

not exceeding the basic wages and dearness allowances of that member for three months or up
10. 68-L Natural calamity Government & proof of damage to
to seventy-five per cent. of the amount standing to his credit in the Fund, whichever is less.
property.
Non Refundable Advances from Provident Fund
Para of E1PF
S.N. Scheme Purpose Eligibility Amount admissible
1952

Cut in electricity in Cut in electricity supplied by

11 68-M Wages for a month or Rs 300/- or employees’ share, whichever is less.
factory/establishment State Government.

Physically handicapped
On account of physical
12. 68-N members for purchaseof Basic Wages & DA for six months or employees’ share or cost of equipment, whichever is less.
handicap.
equipment

Withdrawal one year before Age of member is 54 years

13. 68-NN 90% of total PF balance
retirement. and above

For investment in Varishta Age of member is 55 years

14. 68-NNN 90% of total PF balance.
Pension Bima Yojana. and above
Important Points
• What is the formula for calculating the Pension amount?
• Pension= (Pensionable Salary (average of last 60 months) X Pensionable Service)/70.
• A member who joins the Employees’ Pension Scheme 1995 at the age of 23 and superannuates at the
age of 58, and contributing to the (present) wage ceiling of Rs.15000/- may get about Rs.7500/- as
pension if service is 35 years.
(Pensionable Salary X Pensionable Service)/70 = (15000x35)/70 = 7500
• The average salary is determined only for giving the pension to member. It is the average of last 60
months. (Non-contributory period, if any, is reduced)