EPFO and Act

  • Employees’ Provident Fund is set up under the Central Act viz. Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, in the year 1952.
  • It is applicable throughout the country (except Jammu & Kashmir).
  • It is applicable to almost all establishments falling under the industries/class of establishments, wherein 20 persons are employed.
  • In the case of cinema theatres workers, it is applicable to such establishments wherein 5 persons are employed.
  • Benefits to an employee are provided through the schemes framed under the ‘Act’.
  • Provident Fund benefits are provided under the Employees’ Provident Funds Scheme 1952.
  • Pension benefits are provided under the Employees’ Pension Scheme, 1995.
  • Insurance Benefits are provided under the Employees’ Deposit Linked Insurance Scheme 1976.
  • A member of Employees’ Provident Fund is automatically eligible for Pension and Insurance benefits without paying any additional amount of contribution.

Employees’ Provident Fund Organisation(EPFO):

    • Employees’ Provident Fund Organisation is administering the above Schemes.
    • Employees’ Provident Fund Organisation is a statutory body under the Ministry of Labour, Government of India.
    • It is an all India Organisation having its offices in all State Capitals, Cities, Towns and Districts.
    • The Employees’ Provident Fund is administered by Central Board of Trustees – Employees’ Provident Fund.
    • The Central Board of Ttustees’, Employees’ Provident Fund consist of representatives from Employees’ Association, Employers Association and Central/State Governments.
    • Honorable Minister for Labour, Government of India is the Chairman of Central Board of Trustees, Employees’ Provident Funds.
    • The Chief executive of the Organisation is the Central Provident Fund Commissioner, New Delhi.
    • The Regional Provident Fund Commissioners are In-charge of the Regional/Sub-Regional offices and monitor the compliance from all the establishments.
    • Regional Provident Fund Commissioners are maintaining the Provident Fund Accounts and extending of various benefits to the Employees/Family members/Nominees under the three Schemes.

    Special Features of the Act/Schemes:

    1. The Provident Fund, Pension and Insurance benefits are protected against attachment.  It cannot be assigned or charged and shall not be liable to attachment under any decree or order of any court.
    2. Employees’ Provident Fund as also Provident Fund of Exempted establishments is a recognised Provident Fund under the Indian Income Tax Act, 1961.
    3. An employee is eligible to avail the rebate on Income Tax on his Provident Fund Contributions subject to ceiling prescribed under the Income Tax Act.
    4. Non payment of Employees’ Provident Fund dues by an employer may lead to recovery action by Regional Provident Fund Commissioners such as Prosecution, attachment of Bank Account/Property, arrest and detention etc.
    5. Non payment of employees’ contributions recovered from the wages of the employees would constitute ‘Criminal breach of trust’ punishable under Section 406/409 IPC.
    6. Employees’ Provident Fund dues paid after the due date (20th of the following month including grace period of 5 days) will result in payment of interest & penalty by the employer.
    7. Employees’ Provident Fund account of an employee can be transferred to any place in the country.
    8. Employees’ Provident Fund may be withdrawn partially for certain specified purpose such as housing, marriage, illness, etc.
    9. All Provident Fund Claims of the member are expected to be disposed by EPF Offices within 30 days.
    10. Members are given the benefit of filing Nomination for Provident Fund/Pension and Employees’ Deposit Linked Insurance.
    11. The annual Employees’ Provident Fund balance is expected to be informed to every employee by the Employees’ Provident Fund Office, before 30th September of each year.
    12. The Employees’ Provident Fund Organisation has completed its Golden Jubilee in the year 2002.
    13. The Employees’ Provident Fund Organisation is marching ahead to achieve its goal for total computerisation and inter connection of all its offices in the country so as to ensure service delivery within 2-3 days and any where, at any time service and issue unique in No. to all its members.

    For more details concerning eligibility for EPF membership, quantum of contributions, Nature of benefits eligible, procedure for availing benefits etc. please read further.