Employees Provident Fund and Misc. Provisions Act, 1952 Ready Reckoner

Transcription

1 2012 Employees Provident Fund and Misc. Provisions Act, 1952 Ready Reckoner Written by M Ravi Shankar, mravimtnl@gmail.com Page 1

2 Written by M Ravi Shankar Dedicate to all the unknown gurus on Internet who helped me in learning various subjects. Written by M Ravi Shankar, mravimtnl@gmail.com Page 2

3 1 Introduction 2 Enrollment 3 Compliances 4 EPF Calculations/benefits 5 EPS Calculation/benefits 6 Withdrawal/Advances Index Written by M Ravi Shankar, mravimtnl@gmail.com Page 3

4 Introduction The Employees' Provident Fund & MP Act,1952 is an important piece of Labour Welfare legislation enacted by the Parliament to provide social security benefits to the workers. At present, the Act and the Schemes framed there under provides for three types of benefits -Contributory Provident Fund, Pensionary benefits to the employees/ family members and the insurance cover to the members of the Provident Fund. The object of the Act in 1952 was to institute the compulsory contributory Provident Fund to the employees to which both the employee and the employer would contribute. The Employees' Provident Fund Scheme was accordingly framed under the Act and it came into effect from On a review of the working of the scheme over the years by EPFO, it was found that in the event of the premature death of the employees the accumulation in the Provident Fund were too meagre to the family of the deceased.thus another social security benefit of providing Family Pension through the Employees' Family Pension Fund Scheme, 1971 was introduced by amending the Act. At this stage, the Act was renamed as "The Employees' Provident Fund & Family Pension Act, 1952" and the Employees' Family Pension Scheme came into force on The Act was further amended in the year 1976 to introduce another social security benefit to provide an insurance cover to the members of the Provident Fund in covered establishment. The Employees' Deposit Linked Insurance Scheme, 1976 came into force from The name of the Act was then changed to the present one i.e. 'The Employees' Provident Fund & MP Act, From , the Employees' Pension Scheme has come into force which provides pension to retiring employees on reaching 50/58 years of age, widow pension, children pension and nominee pension on death of the member to his eligible family members. This replaces the Employees' Family Pension Scheme Employee Provident Fund Organization is the nodal agency for administration of the fund as well as statutory authority under the Act to ensure Compliances. EPFO had Launched online receipt of Electronic Challan cum Return (ECR) from the Month of April 2012 (March paid in April. Through, this portal registered employer can upload the Electronic Return and the uploaded return data will be displayed through a digitally signed copy in PDF format. The employer may choose to make the payment through internet banking of SBI or take a print out of the Challan and pay at any designated branch of State Bank of India (SBI). The Benefits of this portal are as follows:: No paper returns to be prepared and submitted to EPFO. No need to submit other returns viz Form 5/10/12A,3A and 6A Employers will get the confirmation of payment through SMS instantly. Written by M Ravi Shankar, mravimtnl@gmail.com Page 4

5 The contribution will be credited to the members' account on monthly basis. Employers can view the annual accounts slip for accounting year online. For earlier years employers can request for the annual slips through this portal. Though the EPFO has provided many features in its portal, still the employers have to preserve Physical Copies of Forms Such as Form 2 (Nomination form) Form 5/10 (to be provided to members after joining/ leaving the service) and Form 3/3A (to be used for filling Form 10 C /D or Form 19 for withdrawal of Pension). Further, claiming benefits under EPF Act is not yet made online. Therefore, in the subsequent chapters of this book, procedures on how to fill the form, the relevant provisions pertaining to the form are explained. The First part of book deals with the compliances that are required to be made by the employer. The second part deals with benefits and withdrawals. Written by M Ravi Shankar, mravimtnl@gmail.com Page 5

6 Enrollment The EPFO Act is applicable to a factory or establishments engaging more than 20 workmen. In order to obtain coverage under EPFO Act, the Contractor shall submit an application to PF office in the Form for Proforma of coverage (Template given in Next page): Attachments Required along with Proforma of Coverage: 1. Memorandum & Articles of Association with Certificate of Incorporation/Partnership Deed as applicable. 2. Copy of Work Orders 3. Labor License 4. Copy of Company PAN 5. Bank a/c existing Certificate 6. Copy of VAT/ST Registration 7. Copy of Factory/Shop & Comm. Est Registration 8. DD/Cheque for One month advance contribution 9. Copy of Trade license 10. First Sales Invoice/ Commencement of Business Certificate issued by the Registrar of Companies. As proof of date of commencement 11. Proof of Residence: rent agreement/electricity Bill etc Procedure 1. The form to be submitted to PF office 2. The Concerned enforcement Officer will visit the establishment for verifying the Original records 3. Thereafter EPF will assign the code. 4. Advance Contribution for two months is required to be paid for coverage. Point to be noted before submission of Form 1. If workmen are more than twenty, a separate sheet should be attached along with the form. 2. Balance sheet is to be attached to determine actual date of coverage. Illustrative Form The Illustrative sheet given in the Next page pertains to ABC Company with employee strength of 20 workmen Proforma for Coverage Written by M Ravi Shankar, mravimtnl@gmail.com Page 6

7 Performa for Coverage ( to be submitted by an employer along with one or more of the documents mentioned below for obtaining Code Number) 1. Name of the establishment/factory and address. ABC Company Limited 2. Details of Head Office and branches with address. 804, SAI KRUPA BUILDING, VASHINAKA, CHEMBUR, 3. Details of Code No. if any allotted to the Head Office. 4. Date of Incorporation/Set up (Please furnish any one of the documents mentioned overleaf in support of the proof of date of set up of the est./factory) 5. Employment Strength At present : (ii)month wise employment strength from the date of set up may be furnished in separate statement : 6. Nature of business activity/ manufacturing activity : 7. Details of legal set up of the establishment (Please mention whether it is an incorporated Private or Public Limited Company, Society, Partnership or Proprietary concern) : 8. Details of the employers/ownership particulars etc. (Names, Designation and Addresses of Managing Director, Directors, Partners, Secretary etc. to MUMBAI MH/ Construction/Civil Private P H Patil 804, SAI KRUPA BUILDING, VASHINAKA, CHEMBUR, MUMBAI be furnished) : 9. Wages disbursed for the month July Details of Bankers: (Including Bank Branches & Account Number (s).) SBI, MAHUL, CHEMBUR MUMABI 11. Income Tax Permanent A/c. No. AABPS1205E. This field need not be filled for first time registration of Company The date of incorporation will be in the Certificate of Incorporation Written by M Ravi Shankar, mravimtnl@gmail.com Page 7

8 Sl.N o. Name of the employee Father s Name Date of Joining Wages (basic +DA & Cash value of Food Concession) 1. Chhya R Dagde Eknath R Dagde 05/04/ Eknath K Jore Nitin K Jore 05/04/ Madhav Manikar Cheyya Manikar 05/04/ Nenu N Bagv Madhav N Bagv 05/04/ Nitin Suravanshi Nitin Suravanshi 05/04/ Poonam Munde Ashok Munde 05/04/ Rajkumar N Kagda Vijay N Kagda 05/04/ Sanjay B ukande Sunil B ukande 05/04/ Santosh J shirke Sanjay J shirke 05/04/ Vijay D Wagmare Vilas D Wagmare 05/04/ Vilas B sable vinod B sable 05/04/ Yogesh S Salve Bhaskar S Salve 05/04/ Prashant A Bhilarew Prateek t A Bhilarew 05/04/ Anil Y Mihsra Ajay Y Mihsra 05/04/ Basavaraj k himatre Dinesh k himatre 05/04/ G Krishan Naidu G Appala Naidu 05/04/ Vemal R Bhale rao Ajayl R Bhale rao 05/04/ Chinta Appa Rao Chinta Sanjeev Rao 05/04/ Dianmaran C Dinakaran C 05/04/ Hanumanta Mudakappa Vinay Mudakappa 05/04/ Fill the detail of Workmen engaged by the company Fill the details of DD Number and Amount (In case you have more than 21 employees the above information in respect of the other employees may be added in a separate sheet of paper in the same format continuing the serial number. ) 12. Details of bank draft amounting to the contribution. Name of the Bank Branch & And administrative charges paid in respect of the above employees. (Rate of Contribution at present is12% by employer and employees+ 0.5% towards E.D.L.I. contribution and 1.15% towards administrative charges VERIFICATION SBI, Mahul Chembur Branch DD No:33675 Amount:99840 The details furnished above are correct to the best of our knowledge and belief. It is clearly understood that we are liable for coverage from a date antecedent to the date of set up furnished above in the event of furnishing of false information. (signature) Employer. Sign of Employer Required Written by M Ravi Shankar, mravimtnl@gmail.com Page 8

9 Enrolment of Employees After registration under EPF Act, the employee should be enrolled under the EPF/EPS/EDLI scheme by submitting Form 2 i.e. Nomination Form under Para 33 & 61(1) of EPF Scheme 1952 and paragraph 18 of Employees Pension Scheme, Nominees under Employees Provident Fund Scheme Male Members : his wife, his children, his dependent parents and his deceased son's widow and children Female Members: her husband, her children, whether married or unmarried, her dependent parents, her husband's, dependent parents, her deceased son s widow and children; Nominees under Employees Pension Scheme Male Members : his wife, Sons & Daughters (includes legally adopted) Female Members: her husband, Sons & Daughters (includes legally adopted) ** Dependent parents cannot be made as dependent in EPS scheme Point to be noted before submission of Form 1. A member can distribute the amount in his nomination form 2. If a member has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such member in favour of a person not belonging to his family shall be invalid. Fill in the required details in the fileds from 1 to 7, except In total there are three tables/ schedules in each form: a. First table (Part A) should be filled with the details of either parents or Spouse. (If married). b. Second table (Part B) should be filled only if employee is not married else empty. - Table 2 c. Third table (Part B) should be filled only if employee is married else empty.. - Table 3 Illustrative Form The illustrative form given in the next page is of a married person wherein he has distributed EPF benefits among his dependent parents and EPS benefit to his wife. Written by M Ravi Shankar, mravimtnl@gmail.com Page 9

10 (For Unexempted /Exempted Establishments) NOMINATION AND DECLARATION FORM FORM 2 (Declaration and Nomination Form under the Employees Provident Funds and Employees Pension Scheme) (Paragraphs 33 & 61 (1) of the Employees Provident Funds Scheme, 1952 and paragraph 18 of the Employees Pension Scheme, 1995) 1 Name (in Block Letters) : Eknath Ram Shelke 2 Father s/husband s : Laxman untru shelke Name 3 Date of birth : 15/4/ Sex : Male 5 Marital Status : Married 6 Account No. (PF/EPS : MH/19116/809 Number) 7 Address (Residential) : Permanent Block No- 04, Sadgur Apratment, Devalali, Thane Temporary Sai Darpar Apartment, Vashinak Chembur PART A (EPF) I hereby nominate the person(s)/cancel the nomination made by me previously and nominate, the person(s) mentioned below to receive the amount standing to my credit in the Employees Provident Fund, in the event of my death: Name and Address of the nominee/ nominees Address Nominee s relationship with the member Date of Birth Total amount or share of accumulatio ns in Provident Fund to be paid to each nominee (%) If the nominee is a minor, name and relationship and address of the guardian who may receive the amount during the minority of nominee (1) (2) (3) (4) (5) Block Mother 01/05/196 50% NA No- 04, 8 Sadgur Apratm ent, Devalali, Thane Laxman Munda Shleke Put Cross Mark at point 1 if you have a family and Point 2 if your parents are dependent 100% 1 * Certified that I have no family as defined in para 2(g) of the Employees Provident Funds Scheme, 1952, and should I acquire a family hereafter, the above nomination should be deemed as cancelled. 2 * Certified that my father/mother is/are dependent upon me. 3. * Strike out whichever is not applicable. Written by M Ravi Shankar, mravimtnl@gmail.com Page 10

11 Remember to take sign of the Subscriber Signature or thumb impression of the subscriber Note: - A Fresh nomination shall be made by the member on his marriage and any nomination made before such marriage shall be deemed to be invalid # If Married > Spouse, Children (married or unmarried), his/her dependent parents, deceased son s widow and children. If unmarried then Parents, Brother, Sister or any other person(s). Page No. 1 Please fill details of parents Part B (EPS) (Para 18) $ if not married. I hereby furnish below particulars of the members of my family who would be eligible to receive widow/children pension in the event of my death. Sl.No. Name and address of the family members Date of Birth Relationship with the member (1) (2) (3) (4) 1 Sumanta Shelke 15/4/1989 Wife ** Certified that I have no family, as defined in para 2(vii) of Employees Pension Scheme, 1995 and should I acquire a family hereafter I shall furnish particulars thereon in the above form. I hereby nominate the following persons for receiving the monthly widow pension (admissible under para 16 2(a) (i) and (ii) of Employees Pension Scheme, 1995 in the event of my death without leaving any eligible family member for receiving Pension. Name and Address of the Date of Birth Relationship with the member Nominee (1) (2) (3) Sumanta Shelke 15/4/1989 Wife Dated the : **Strike out whichever is not applicable. CERTIFICATE BY EMPLOYER Signature / thumb impression of the subscriber Remember to take sign of the Subscriber Certified that the above declaration and nomination has been signed/thumb impressed before me by Shri/Smt./KumariEknath Ram Shelke_employed in my establishment after he/she has read the entries/the entries have been read over to him/her by me and got confirmed by him/her. Place: Dated the. Signature of the Employer or other authorised Officer of the establishment Designation. Name and address of the Factory/Establishment or rubber stamp thereof Written by M Ravi Shankar, mravimtnl@gmail.com Page 11

12 Form No.11: Declaration on EPF Subscription: Form 11 under EPF scheme pertains to information provided by an employee while joining a new employer, about his previous employments with name and address of employers along with duration of service. In this form a new joinee also declares that whether he was previously a member of EPF scheme or not. This form is to be kept by an employer and not to be deposited with Sub/Regional commissioner. EPF inspector while inspecting records of an establishment may ask for these forms to check the eligibility criteria. The Form 11 of EPF is a declaration by the employee for certifying that wherever has worked/or not worked, he never had a PF account number. The EPFO has introduced this form in order to stop the system of having multiple numbers of one employee. Duties of Employer 34. Declaration by persons taking up employment after the Fund has been established The employer in relation to a [factory or other establishment] shall, before taking any person into employment, ask him to state in writing whether or not he is a member of the Fund and if he is, ask for the Account Number and/or the name and particulars of the last employer. If he is unable to furnish the Account Number, he shall, require such person to furnish and such person shall, on demand, furnish to him for communication to the Commissioner, particulars regarding himself and his nominee required for the Declaration Form. Such employer shall enter the particulars in the Declaration Form and obtain the signature or thumb impression of the person concerned: Provided that in the case of any such employee who has become a member of the Family Pension Fund under the Employees Family Pension Scheme, 1971, the aforesaid Declaration Form shall also contain such particulars as are necessary to comply with the requirements of that Scheme. As per Paragraph 34 of EPF Scheme, Employer shall take an undertaking from the member in Form 11 that employee was not enrolled earlier in the scheme. If the employee is previously enrolled, the employer should insist the member to submit the details of his previous account and fill the same in Form No 11. In case an employee is already member of phased out Family pension scheme 1971, the details of same are also required to be furnished Point to be noted before submission of Form 1. Points (a) to (d) in the form 11 are required to be filled in case the employee is earlier member of the scheme 2. Point (e) in the form 11 is required to be filed only in the case the member is not enrolled earlier in the PF Scheme. Illustrative form: The form given in the next page is of a new entrant who wan not a member of PF Scheme earlier. Therefore all fields are kept blank except 1 (e) which is tick marked Written by M Ravi Shankar, mravimtnl@gmail.com Page 12

13 FORM-11 (For unexempted Establishment only) Paragraph 34 of the Employees Provident Funds Scheme, 1952 Declaration by a person taking up employment in an establishment in which the Employees Provident Fund and Family Pension Fund Scheme are in force : I Vikas Praksh Ghodke (Name) ** son/wife/daughter of Prakash B Ghodke do hereby solemnly declare that (a) I was last employed in Company left service on 1/5/2010 (Prior to that I was employee of from to date (b) I was a member of Provident Fund and also/but not of the Family Pension Fund from to and my account number(s) was/were / / (c) I have /have not withdrawn the amount of any Provident fund/family Pnsion Scheme. (d) I have/have not drawn any superannuation benefits in respect of my past service from any employer. (e) I have never been a member of any Provident Fund and/or Family Pension Scheme. Date Signature or **right/left hand thumb impression of the employee. (To be filled in by the employer only when the person employed had not already been a member of the Employees Provident Fund) Put a Tick Mark in case employee is not a member earlier in this scheme Shri Vikas Praksh Ghodke (name) is appointed as Rigger (Designation) in ABC Company(Name of the Factory/Establishment) with effect from (Date of appointment) From to No. of days worked Date of completion of 120 actual working days in a period of 6 months or less or six months* continuous service or date of confirmation whichever is earliest. Date of admission as member of Employees Provident Fund Account No. Signature of the Employer or Manager or other Authorised Officer. Date ** Strike out whichever is not applicable. N.B. The principal employer should have filled it up also in respect of employees to be employed by or through a contractor. Total No. of Employees Total No. of Subscribers (For Unexempted Establishment only) Contract Rest Total Written by M Ravi Shankar, mravimtnl@gmail.com Page 13

14 Contributions The Contribution payable by employer and employee is provided in Section 6, 6-A & 6-B of the EPFO Act. Relevant provision Section 6: Contributions and matters which may be provided for in Schemes. The contribution which shall be paid by the employer to the Fund shall be ten percent. 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 employee s 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 percent 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 percent, at both the places where they occur, the words 12 percent shall be substituted: Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee. Explanation I For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee. Explanation II. For the purposes of this section, retaining allowance means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services. Interpretation The PF Contributions payable shall be paid by the employer to the fund shall be ten/twelve percent of basic wages, dearness allowance including cash value of food concession, retaining allowance and the employee contribution shall be equal to employer s contribution. Written by M Ravi Shankar, mravimtnl@gmail.com Page 14

15 The Amount of Contribution is divided in to three schemes as follows: Scheme Name Employee contribution Employer contribution Employee provident fund 12% 3.67% Employees Pension scheme % Employees Deposit linked 0 0.5% insurance EPF Administrative charges 0 1.1% EDLIS Administrative charges % Total 12% 13.61% Calculation of Contribution Let us calculate the contribution of an workman who is getting a minimum wage of Rs per day. The wages payable for a month will be Rs 6149 ( X 26 days) Contribution Towards Calculation Amount EPF Employees share 6149 x 12% 738 EPS Employer share 6149 x 8.33% 512 EPF employer share 6149 x 3.67% 226 EDLI charges 6149 x 0.5% 31 payable by employer EPF Admin charges 6149 x 1.1% 68 payable by employer EDLI Admin charges payable by employer 6149 x 0.01%.61 In case, the salary of employee is more than Rs 6500 then the PF Contribution payable by employer is only limited to Rs 6500/- only as per Para 2 6 A (2) of PF Scheme, Para #(2) of EPS Scheme and Para 7 of EDLI Scheme. In such a scenario the following method may be adopted to pay their contributions. Consider an employee getting a basic salary of 7500/- Contribution Towards Calculation Amount EPF Employees share 7500 x 12% 900 EPS Employer share 6500 x 8.33% 541 EPF employer share 6500 x 3.67% 239 EDLI charges 6500 x 0.5% 33 EPF Admin charges 6500 x 1.1% 72 EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-) Written by M Ravi Shankar, mravimtnl@gmail.com Page 15

16 Points to be noted: The employee has option to join or not to join PF Scheme in case his salary is more than Rs 6500 The minimum wages and special allowances notified by appropriate government can not be further bifurcated for payment of PF Contributions. Mode of Payment An Electronic Challan Cum Return should be generated in the esewa portal of EPFO for payment of Contribution Amount. The Contributions of employee as well as employer shall be remitted in State Bank of India thru cheque or DD drawn in favor of EPFO along with Electronic Chalaln Cum. The ECR consists of the following fields: : Contribution Towards Details of Account Calculation Establishment Code Code/Number allotted by PF department to your Company Account Group A/c 1 Payment towards Provident fund Contributions Employer 3.67% and Employee 12% A/c 10 Payment towards Pension Employer *8.33% A/c 2 Admin charger for PF and And Pension for all employees Total employer contribution* 1.10% A/c 21 Payment towards EDLI Employer 0.5% (Basic +Da) A/c22 Admin charges for EDLi A/c21 *0.5% The remittance shall be made within 15 days of close of every month i.e. by 15 th of the following month of payment of salary Written by M Ravi Shankar, mravimtnl@gmail.com Page 16

17 Compliance Form 5: Para 36 (2) (a) of EPF Scheme: (2) Every employer shall send to the Commissioner within fifteen days of the close of each month a return- (a) in Form 5, of the employees qualifying to become members of the Fund for the first time during the preceding month together with the declarations in Form 2 furnished by such qualifying employees, and (c) provided further that a copy of the forms mentioned in clause (a) and (b) above shall be provided by the employer to concerned employees immediately after joining of the service or at the time of leaving of the service as the case may be (7)Every employer shall send to the Commissioner such returns in electronic format also, in such manner and form as may be specified by the commissioner Interpretation: By 15 th of every Month Form 5 along with form 2 shall be submitted. Such Form 5 shall consist information of the new employees who have joined the scheme. Vide Notification date 4 th May 2012, Form 5 shall be submitted electronically (ie in ECR text file Form 5 is getting submitted). However, a physical copy should be provided to the employee. Employees Provident Fund Scheme Form 5 [Paragraph 36(2)(a) of the Employees Provident Funds Scheme, 1952 and Para 20(4) of the Employees Pension Scheme, 1995] Return of Employees qualifying for membership of the Employees Provident Fund, Employees Pension Fund & Employees Deposit Linked Insurance Fund for the first time during the month of July 2012 (To be sent to the Commissioner with Form 2 (EPF & EPS) Name and Address of the Factory/Establishment: ABC COMPANY LIMITED, 804, SAI KRUPA BUILDING, VASHINAKA, CHEMBUR Code No. of Factory/Establishment: MH/19116 SL No MH/19116/23 Account No POONAM MUNDE Name of Employees in Block Letters GUDDI MUNDE Father s name (or Husband s name in case of married woman) Date of birth Sex Date of Joining of the fund M Total period of previous service as on the date of joining the Fund (Enclose Scheme certificate if applicable Rem arks Signature of the Employer or other authorized officer of the Factory/Establishment Date.. Stamp of the Factory/Establishment Written by M Ravi Shankar, mravimtnl@gmail.com Page 17

18 Compliance-II :Form-10 Para 36 of EPF Scheme: (2)Every employer shall send to the Commissioner within fifteen days of the close of each month a return-: (b) [in such form as the Commissioner may specify], of the employees leaving service of the employer during the preceding month: Provided that if there is no employee qualifying to become a member of the Fund for the first time or there is no employee leaving service of the employer during the preceding month, the employer shall send a NIL return. ( c) provided further that a copy of the forms mentioned in clause (a) and (b) above shall be provided by the employer to concerned employees immediately after joining of the service or at the time of leaving of the service as the case may be (7)Every employer shall send to the Commissioner such returns in electronic format also, in such manner and form as may be specified by the commissioner Interpretation: By 15 th of every Month Form 10 shall be submitted. Such Form 10 shall consist information of the employees who have left the scheme. Vide Notification date 4 th May 2012, Form 5 shall be submitted electronically (i.e., in ECR text file form 10 is getting submitted). However, a physical copy should be provided to the employee. Employees Provident Fund Scheme Form 10 Paragraph 36(2)(a) & (b) of the Employees Provident Funds Scheme, 1952 Return of Members leaving service during the month of Name and address of the Factory/Estt. Code No SL No Account No. Name of member (in block letters) Father s Name (or husband s name in case of married woman) Date of leaving service *Reasons for leaving service MH/19116/ 12 Nitin S Vanshi Mahesh Suray Vanshi 10/4/2010 Attained age of 58 yrs MH/19116/ Vijay K 14 Gaikwad Prakash K Gaikwad 15/4/2010 Dismissed MH/19116/ 20 Ravindran K Padmanabhan K 18/4/10 Resigned Remarks Signature of the employer or other authorised officer Date :.. Stamp of the Factory/Estt. Written by M Ravi Shankar, mravimtnl@gmail.com Page 18

19 *Please state whether the member is (a) retiring according to Para 69 (1)(A) OR (B) of the scheme, (b) leaving India for permanent settlement abroad, (c) retrenchment, (cc) part of a total disablement due to employment injury, (d) ordinarily dismissed for serious and wilful misconduct, (e) discharged, (f) resigning from or leaving service, (g) taking up employment elsewhere. (The name and address of the Employers should be stated) (h) Death, (I) attained the age of 58 years. A request for deduction from the account of a member dismissed for serious and willful misconduct should be reported by the following Certified that the member mentioned at Sr. No.2 Shri Vijay K Gaikwad was dismissed from the service for willful misconduct. I recommend that the employer's contribution for Rs 5326 should be forfeited from his account in the fund. A copy of order of dismissal is enclosed (2) In case of discharge from service, the following certificate should be filled. Certified that the member mentioned in Sr. No. Shri was paid/ unpaid retrenchment compensation of Rs under the Industrial Disputes Act, 1947 Signature of the Employer Compliance-III :Form-3A & 6A Relevant Provisions 40. Contributions to be entered in the contribution card The amount recovered every month from the wages of an employee as well as the contribution made by the employer in respect of each such employee shall be entered by the employer every month in the contribution card opened in the name of each member under this Scheme. Interpretation: The Contribution card will be FORM 3/3-A. The amounts recovered shall be entered in Form 3/3-A 41. Currency of Contribution Cards The contribution cards issued under this Scheme shall be current for one year: Provided that the said period of one year may commence and terminate at such different times, in different [factories and other establishments] as may be decided by the Commissioner from time to time: Provided further that the cards issued a. in respect of the first contribution period, or b. in respect of the contribution period immediately preceding the date from which the establishment is notified as an annually posted establishment, may be for a period which may be less or more than a year. Written by M Ravi Shankar, mravimtnl@gmail.com Page 19

20 Interpretation: Form 3/3-A shall be maintained generally for accounting year i.e starting from April to March. If any person joins in between the year his card can be maintained from such month till end of March 42. Renewal of contribution cards An employer shall, on or before the expiration of the period of currency of the contribution card, prepare in respect of each member employed by him a card [in Form 3] [or Form 3A] as may be appropriate, for the next period of currency: Provided that in the case of any such employee who has become a member of the Family Pension Fund under the Employees Family Pension Scheme, 1971, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of that Scheme. Interpretation: Fresh Form3/3-A shall be prepared after expiration of each year for every member. In other words Form3/3A is valid for one year only. 43. Submission of contribution cards to the Commissioner Every employer shall within one month from the date of expiration of the period of currency of the contribution cards in respect of members employed by him, send the contribution cards to the Commissioner together with a statement in Form 6: Provided that where a member leaves service, the employer shall send the contribution card in respect of such members before the twentieth day of the month following that in which the members left the service: Provided further that in the case of any such employee who has become a member of the Family Pension Fund under the Employees Family Pension Scheme, 1971, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of the Scheme. Interpretation: Form 3/3A shall be submitted to RPFC within one month of expiration of currency period i.e. April 30 th is the last date for submission of Form3/3A along with Form 6/6A to RPFC. If an employee leaves in between the year, then Form 3/3A shall be submitted within 20 of the following month of leaving. However, after launch of e-sewa portal Form 3/3A is not required to be submitted in commissioner s office 44. Custody of contribution cards The employer shall retain in his custody the contribution cards in respect of each member employed by him and shall take every precaution against loss or damage of the contribution cards Interpretation: The employer shall keep the FORM 3/3A in his safe custody. Written by M Ravi Shankar, mravimtnl@gmail.com Page 20

21 Para 38 (3) of EPF Scheme: The employer shall send to the Commissioner within one month of the close of the period of currency, a consolidated annual Contribution Statement in Form 6-A, showing the total amount of recoveries made during the period of currency from the wages of each member and the total amount contributed by the employer in respect of each such member for the said period. The employer shall maintain on his record duplicate copies of the aforesaid monthly abstract and consolidated annual contribution statement for production at the time of inspection by the Inspector. Interpretation: Form 6A shall be submitted before 30 th April of every year. Now Form 3/3A/6/6A will be generated electronically. There is no requirement of Physical submission of the Annual Returns Written by M Ravi Shankar, mravimtnl@gmail.com Page 21

22 Withdrawals & Benefits Interest: Relevant Provision 60. Interest (1) The Commissioner shall credit to the account of each member interest at such rate as may be determined by the Central Government in consultation with the Central Board. Meaning The interest will be decided by Central Board of trustees the Apex Body of EPFO currently chaired by Labor and Employment Minister Mallikarjun Kharge. The interest rate for the year is 8.25% p.a.. Claiming of Provident Fund 72. Payment of Provident Fund (1) When the amount standing to the credit of a member, becomes payable, it shall be the duty of the Commissioner to make prompt payment as provided in this scheme (5)(a) Every employer shall, at the time when a member of the Fund leaves the service, be required to get the claim application, for payment of provident fund in cases specified in clauses (a) to (dd) of sub-paragraph (1), of paragraph 69, duly filled in and attested, and to forward the said application [within five days of its receipt] to the Commissioner or any other officer authorised by him in this behalf. (b) Every employer shall, at the time when a member of the Fund leaves the service, be required to get the claim application, for payment of provident fund in cases specified in clause (e) of sub-paragraph (1), and in subparagraph (2) of paragraph 69, duly filled in and attested, and to give the said application to the member, for submission, on completion of the period specified in sub-paragraph (2) of paragraph 69, [provided the member continues to remain unemployed in a factory or other establishment to which the Act applies] either through post or in person with proper identification, to the Commissioner or any other officer authorised by him in this behalf. (c) Every employer shall, on the death of the member and on receipt of an application for receiving the amount standing to the credit of such member, forward forthwith [but not later than five days of its receipt] the said application to the Commissioner or any other officer authorised by him in this behalf. (d) If the applicant is unable to send the claim application through the employer or duly attested by him, for any reason whatsoever, he may forward it to the Commissioner or any other officer authorised by him in this behalf, and wherever necessary, the Commissioner or any other officer authorised by him in this behalf may forward such application to the employer and the employer shall be required, to return it within five days of its receipt. (7) The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within 30 days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within 30 days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respects within 30 days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12% per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner. Written by M Ravi Shankar, mravimtnl@gmail.com Page 22

23 Interpretation 1. Employer shall send duly filled in withdrawal form to the PF Commissioner while a member leaves service 2. Employer shall send duly filled in withdrawal form to the PF Commissioner within 5 days of receipt in case of death 3. It is the duty of the commissioner to ensure that claim gets settled within 30 days from date of receipt Instructions: Form 19 should be filled for withdrawal of provident fund except for death. In case of Death Form 20 should be filled. The fields of both the forms are almost similar except in form 20 the details of claimant and his bank account details needs to be filled and signed by claimant. The example given below is of a resigned employee in Form 19. Sl. Particulars Instructions for furnishing the particulars in form 19 1 Reason for Leaving Service 2 Mode of Remittance From the following please Indicate the reason applicable to you: 1. Retired from Service after attaining 55 years 2. Retired on Disability to the work 3. Under Voluntary Retirement Scheme 4. Migration to abroad on Permanent settlement 5. Retrenched from Service 6. Resigned / Left Service * * For cases of Resignation / Left Service, the claim should be submitted by the member only after two months from the Date of Leaving Service It is safer to have the payment through cheque. Account Payee cheque will be sent directly to the Scheduled bank / Coop Bank / Post Office in which Savings bank Account of the member is maintained. So, furnish correct SB account number with full address of the Branch of the Bank. wherever applicable furnish the MICR Number also. Please furnish the Xerox copy of the First page of Saving Bank account pass book or monthly statement/cancelled Cheque wherein the account number and address of the Bank is clearly visible. 3 Contribution for the current financial year 4 Attestation by the Employer 5 Advance Stamped Receipt In the table provided in Page 3, contribution for the current financial year with wages should be furnished or Form 3/3A for the current financial year with attestation of the employer should be furnished. The authorized official of the establishment should attest the claim under the seal of his designation. It should be ensured, the specimen signature of the attesting official should have been already furnished to the EPFO. Wherever payment is sought through account payee cheque, the advance stamped receipt should be signed by the member duly affixing One Rupee Revenue Stamp. The amount need not be filled in, which shall be filled in by the RPFC / OIC of the EPFO Office. Written by M Ravi Shankar, mravimtnl@gmail.com Page 23

24 Employees Provident Fund Scheme Form 19 Paragraph 72(5) of Employees Provident Funds Scheme, 1952 Form to be used by a Major Member of Employees Provident Funds Scheme, 1952 for Claiming the Employees Provident Fund Dues : (Refer to Instructions) 1. Name of the member (in Block Letters) : Vikas Praksh Ghodke 2. Father s Name (or husband s name in the case of married woman) Prakash Bandhu Ghodke. 3. Name and address of the Factory/Establishment in which the member was last employed ABC Company Limited, 804, SAI KRUPA BUILDING, VASHINAKA, CHEMBUR, MUMBAI Account No. MH/19916/38 5. Date of leaving service: 31/06/ Reason for leaving service Resigned 7. Full Postal Address (in Block Letters) Shri/Smt/Kumar. : Vikas Praksh Ghodke S/o. W/o: Prakash Bandhu Ghodke, No: 501, BLG:7/A, Vishwa Shanti Bldg, Vashinaka, Chembur, Mumbai, Pin: Put a tick in the box against the one opted ( ) ( ) to the address given against item No. 7 ( ) S.B. A/c No. in figure: Name of the Bank: State Bank of India Branch: Chembur (Mumbai) Full Address: Nr Post Office, Ashish Theatre, Chembur, Mumbai 8. Mode of Remittance (a) by postal money order at my cost (b) by account payee cheque sent direct to credit to my S.B./A/c (Scheduled Bank/P.O.) under intimation to me. (Tick here) (Advance Stamped Receipt furnished below) Certified that the particulars are true to the best of my knowledge. Date of Joining the Establishment : 5/12/2000 Date of Leaving Service:31/6/2010 Contribution for the current financial year Written by M Ravi Shankar, mravimtnl@gmail.com Page 24

25 Month Employees Share Amount of Wages E.P.F EPF Cont.(-) Pension Pension Fund Fund Cont. March paid in April May June July August September October November December January February Feb. paid in March Suppl.( if any) Total Employers Share Refund of Adv. Period of Break Remarks (Information tobe furnished by the employer if the claim form attested by the employer) Certified that the above contributions have been included in the regular monthly remittance. The applicant has signed/thumb impressed before me. Signature of the employer or authorised Official Signature of left/right Thumb impression of the member Advance Stamped Receipt Remember to take ( Sign of Member Received a sum of Rs*. (Rupees* ) From Regional Provident Fund Commissioner/Officer-in-Charge of Sub-Regional Office deposit in my Savings Bank Account towards the settlement of Provident Fund Accout. * The space should be left blank which shall be filled in by Regional Provident fund Commissioner/Officer-in-charge of S.R.O. Remember to take Sign of Member of the member Affix 1 ruppes Revenue Stamps Signature of left/right hand thumb impression (For the use of Commissioner s Office) Written by M Ravi Shankar, mravimtnl@gmail.com Page 25

26 A/c. settled in part/full Entered in F-21-A/224/29 Withdrawal Register. Clerk Head Clerk (P.I. No.) (M.O./Cheque).. Account No. (Section). Under Rs Passed for Payment of Rs. in words) M.O. Commission If any) Net Amount to be paid by M.O. Accounts Officer Date.. Paid by inclusion in Cheque No.. dt... Vide Cash Book (Bank) Account No. 10 Debit Item No.. H.C. AC/RC Remarks Acknowledgment Card Account No. EPFO Office of the RPFC/Officer-in Charge of Sub-Regional Office Acknowledgement Received the following claims. EPF FPF IF Registration No.. Date Office Seal.. In case, no intimation is received within a Month, you may write to the complaints Postcard Postage Officer, Employees Provident fund duly Prepaid quoting the Registration Number and your Provident Fund Account Number.. PIN Employees Provident fund Organisation Office of the Regional Provident Fund Commissioner/ S.R.O... Written by M Ravi Shankar, mravimtnl@gmail.com Page 26

27 Pension Benefit Funding of the Pension Scheme An amount equal to 8.33% of Wages is paid into the EPS from the Employer's contribution. i.e., if a PF member gets Rs. 1000/- as monthly wages and he and his employer contributes 12% each, Rs. 83 goes to Pension Fund. Government also contributes to this Welfare Scheme at the rate of 1.16% of wages. Calculation of pension (A) Those who joined service before : The formula for calculation of pension for employees who joined service before is Past Service Benefit + Pensionable service benefit - Proportionate reduction The employee who joined service before are divide in to three groups. The three groups are divide basis their as on X : those who have not attained 48 years as on Y : those who have attained 48 years but less that 53 years as on Z : those who have attained 53 years or more as on The minimum pension specified for each group i.e. X - Rs.800, Y - Rs.600, Z - Rs.500. The pension payable is calculated as follows: Past Service Benefit: Past Service benefit depends upon the wage as on and the service rendered. upto as shown below: TABLE A Past Service before Benefit in Rs. Benefit in Rs. Wages as on is upto Rs.2500/ Upto 11 years More than 11 years but upto 15 years More than 15 years but less than 20 years Beyond 20 years Wages as on is more than Rs.2500/- The above amount is the benefit payable on completion of 58 years of age as on Written by M Ravi Shankar, mravimtnl@gmail.com Page 27

28 For the calculation of pension benefits before 58 years (if a member do not complete 58 years of age on , his past service benefit will be increased by the below factor - Early pension cases ) the above benefit is multiplied by the TABLE - B factor to arrive at the past service benefit. Table B If Years to 58 of age from is: then factor is: If Years to 58 of age from is: less than 1 year less than 13 years 3.29 less than 2 years less than 14 years less than 3 years less than 15 years less than 4 years less than 16 years less than 5 years less than 17 years less than 6 years less than 18 years less than 7 years less than 19 years less than 8 years less than 20 years less than 9 years less than 21 years less than 10 years less than 22 years less than 11 years less than 23 years less than 12 years less than 24 years then factor is: 2. Pensionable Service benefit= Pensionable salary X Pensionable Service The pensionable salary will be the last drawn salary (Basic+DA which is less than Rs 6500) and Pensionable is the total service. The pension payable is Subject to minimum pension assured by EPF. 3. Proportionate reduction: arises if the past service is less than 24 years and aggregate pension calculated is less that Rs.500/- (B) Pension Calculation for Employees who Joined Service after : Pension benefit= Pensionable salary X Pensionable Service The pensionable salary will be the last drawn salary and Pensionable is the total service. The pension payable is subject to minimum pension assured by EPF Suppose a workmen has service of 20years and his last drawn pensionable salary is 5000 (Basic+DA which is less than Rs 6500) then the pension benefit is as follows: Pension benefit = 5000 x 20 = 1428 p.m 70 Written by M Ravi Shankar, mravimtnl@gmail.com Page 28

29 Types of Pension: Type of Description Pension Superannuation If age is 58 years or more 20 years or more service Retirement If age is between 50 and 58 years 20 years or more service Short Service If service is more than 10 years (Cessation) Return of If Service is less than 10 years Contribution on exit from employment Calculation Formula As provided in the Formula above As provided in the Formula above As provided in the Formula above Return of contribution will be provided as per service i.e Yrs of service Return of Contribution Yrs of service Return of Contribution Suppose last drawn salary is Rs 5000/- Widow/Child Pension Disability Pension Provided to widow and child Certificate to the effect of permanent and 100% disability should be produced Commutation not applicable Widow pension would be same as he would have received on members date of retirement. In addition to this child would receive 25% of widow pension as child pension. Would be same as he would have received on members date of retirement For withdrawal of pension for service less than 10years Form 10-C is required to be used where as for claim of monthly pension on superannuation/retirement/short service pension/disabled pension/widowed pension/children person/ orphan pension form 10 d should be used. The below given form is an example of Form 10-d of a widower subsequent to her death orphan pension is being given to her children. Written by M Ravi Shankar, mravimtnl@gmail.com Page 29

30 Form 10-D The information you should know before you fill claim form seeking settlement under Employees Pension Scheme If you are a member of pension scheme and If you have less than 10 years contributing service and seek settlement of withdrawal benefit Submit claim in Form 10-C If you are applying for Superannuation pension / Reduced pension / Widow pension / Children / Orphan Pension / Permanent Disability pension If the claimant is minor Submit claim in Form 10-D The claim should be submitted by the Natural guardian / Guardian appointed by the Competent court How to fill Form 10-D claim application Sl (d) 6(a) 6(b) 6 ( c ) Instructions for furnishing the particulars Please fill the claimant s name. If the member is claiming for Retirement / Reduced / Disablement pension, he should fill in his name. The type of pension claimed is to be furnished For Example - Retirement pension or Reduced pension or Widow pension or Children / Orphan pension / Disability pension While furnishing Date of birth, it should tally with Date of birth furnished in Form 9 and other office records. If you want to correct the Date of birth now, documentary evidence such as Birth Certificate / School Certificate / Service records of the establishment duly attested by the employer should be furnished. Date of joining in the Pension Scheme either old pension scheme or new pension scheme should be furnished Date of leaving service be furnished. If the member had attained age of 58 years and still continuing in service, Date of attaining 58 years of age be furnished. Member should mention the Date from which he opts to receive pension in case of reduced pension 7 Reason for leaving service be furnished correctly as (1) Retirement or Superannuation or (3) Resigned / Retrenched or (4) Disablement or (5) Attained 58 years and continuing service (2) Written by M Ravi Shankar, mravimtnl@gmail.com Page 30