EMPLOYEES’ PRPVIDENT

FUND ORGANAIZATION
Socialist Principles-Directive Principles of State Policy

Article 38: The state aims to create a social system that ensures justice in all aspects of life
for everyone.

Article 41: The state, considering economic limits, grants citizens the right to work,
education, and assistance in times of need.

Article 43: The state guarantees fair wages, quality life, and socio-cultural amenities for
laborers.

Article 47: The state is obligated to enhance nutrition, living standards, and public health.
EPFO Organizational Chart

CBT

EC

CPFC

FA&CA ACC(HQ
ACC CVO
O )
CBT: Constitution

 The Central Board EPF is a statutory body constituted by the Central

Government under the provisions of Section 5A EPF&MP Act-1952(Act 19 of
1952).
 It is a tripartite body administering the three Schemes framed under the Act.
 The tenure of the Board is for five years. The constitution of the Board as per
section 5A of the Act is as under :-
 Chairman - Honb’l Union Minister of Labour & Employment, GOI
 Vice Chairman - MOS for Labour / Labour Secretary
 Member Secretary (ex-officio): CPFC
 Central Government representatives: Not more than5
 State Governments representatives: Not more than 15
 Employers' representatives: 10
Main Functions of CBT

 Administration of the funds created and vested with the Board and performing
other works incidental thereto.
 Delegation of Administrative & Financial powers as it may deem necessary for
efficient administration of the Schemes.
 Appointment of officers and staff.
 Maintenance of accounts of income & expenditure
 Submission of Audited Accounts (with comments of CAG) and Annual Report
on performance of EPFO to the Government.
Sub-Committees of CBT

1. Finance Investment and Audit Committee

 To oversee the investments being done by the portfolio managers.
 To watch timely investment of trust money with a view to realizing the optimum
return thereon.
 To issue such directions, as may be considered necessary, to the portfolio managers
in regard to investment, re-investment of redemption proceeds, interest etc. in
accordance with the prescribed pattern of investment & guidelines, therefore.
 To recommend rate of interest for the members of the Fund.
 To recommend formulation of guidelines for utilization of the Special Reserve
Fund
 Conduct periodic review of utilization of Special Reserve Fund.
 Any others work/ responsibility that may be assigned by the Board.
Sub-Committees of CBT

2. Pension & EDLI Implementation Committee

 To review the functioning of the EPS 1995 including computerization in the
Organization and disbursement of pension
 To consider the suggestion/proposals for amendment/improvement in the
Employees’ Pension Scheme 1995
 To review the functioning of the Employees’ Deposit Linked Insurance Scheme,
1976 and to consider the suggestions/proposals for amendment/improvement in
the EDLI Scheme.
Sub-Committees of CBT

3. Exempted Establishments Committee

 To oversee the working of exempted establishments in all respects and to make
suggestions for consideration of the Board to improve working of the exempted
establishments.
 To consider and suggest additional guidelines for grant of exemption/relaxation.
 To review the role of exempted trusts in the context of changing business
environment and current experience.
 As a onetime measure the Committee on Exempted Establishments on behalf of
the Central Board, also consider the pending exemption proposals where
relaxation has been granted before 31.03.2013 and which have been submitted
subsequently in 2014-15 and recommend the same to Appropriate Government
for grant of exemption.
Sub-Committees of CBT

4. Committee on Construction Workers

 The Sub-Committee will suggest mechanism for increasing the coverage of
Workers in the Construction Industry.
 The tenure of Sub-Committee shall be at the pleasure of the Chairman.

5. Committee on Contract Workers

 The Sub-Committee will suggest mechanism for increasing the coverage of

Contract Workers.
 The tenure of the Sub-Committee shall be at the pleasure of the Chairman.
Sub-Committees of CBT

4. EXECUTIVE COMMITTEE, CENTRAL BOARD (EPF)

• Statutory Committee: Constituted from Central Board of Trustees members under Section
5AA of the Act by Central Government.
• Administrative Assistance: Aids Central Board of Trustees, EPF in administrative functions.
• Chairmanship: Chaired by Secretary of Ministry of Labour & Employment, Government of
India; term is two years and six months.
 As per Section 5AA, the constitution of the Committee is as under:
 Chairman -(Secretory, MOLE)
 CPFC–Member Secretary (ex-officio)
 Central Government representatives - 02
 State Governments representatives - 03
 Employees’ representatives - 03
 Employers’ representatives – 03
Main functions of Executive Committee

• Opening of Sub-Regional Offices/Sub-Accounts Offices.

• Approval of proposal for the purchase of land and estimates for constructing
Office buildings and Staff quarters.
• Creation of Group 'A' posts.
• Creation of new regions/up-gradation of existing regions.
• Hiring of office buildings on monthly rent exceeding ₹ ……………/-.
• Consideration of the investment policy and making appropriate
recommendations to the Board on liberalization of investment pattern.
• Specifying work norms for Staff and Officers of the Organisation.
• Framing/amending of the rules relating to method of recruitment, pay/
allowances & other conditions of service of the Officers/Staff of EPFO
Sub- Committees of Executive Committee

 Constituted for specific purposes to aid and advise the Executive Committee.
 Consist of the representatives of employers, employees, Government and domain
experts
1. Committee on IT Reforms
 To recommend policy level decisions for implementation of IT Reforms in EPFO.
 To oversee entire process of IT Reforms in EPFO.
 Any other matter referred by Chairman, CBT, Executive Committee or the
Central PF Commissioner.
2. Committee on Building & Construction
 Reviews land and building acquisition proposals, assessing technical and
financial aspects, excluding those from Central/State/PSUs, referred by the
Executive Committee.
Regional Committees (EPF) for the States/Union Territories

 The Regional Committees (Employees’ Provident Fund) for the State are constituted
under the provisions of Para 4 of Employees’ Provident Fund Scheme, 1952.
 The Chairman, Central Board, is the competent authority to constitute/reconstitute the
Regional Committee (EPF) for the state
 Under Para 4 of the Employees’ Provident Fund Scheme, 1952. The term of each
Regional committee is three years from the date of notification in the Official Gazette.
 Sub-Para (1) and (2) of Para 4 of EPF Scheme,1952 provides for each State to advise the
Central Board on matters connected with the administration of the Scheme in the State
and in particular on:-
 Progress of recovery of provident fund contributions and other charges
 Expeditious disposal of prosecution cases
 Speedy settlement of claims
 Issue of Annual Accounts slips to members of the Fund, and
 Speedy sanction of advances.
EPF & MP Act-1952

Three Allied Schemes

 The Employees’ Provident Funds Scheme, 1952
 The Employees’ Pension Scheme, 1995
 The Employees’ Deposit-Linked Insurance, Scheme, 1976
EPF & MP Act
–Applicability : Whole of India
– A factory engaged in any industry specified in Schedule-I and in which 20
or more persons are employed.
– Any other establishment employing 20 or more persons or class of such
establishments which the Central Government may notify in the Official
Gazette.
– Establishments with less than 20 employees on an application made to
CPFC 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.
– Act continues to apply even if the employment strength falls below 20.
 EPF & MP Act

Important Provisions
“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) “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;
Important Provisions
Protection against attachment(Section 10)
Priority of payment of contributions over other debts.(Section 11)
Employer not to reduce wages, etc.(Section 12)
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
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, Provident Fund or Life
Insurance to which the employee is entitled under the terms of his employment,
express or implied.
 20

Contribution Rates
S. HEAD Regular Provisions of EPF/EPS/EDLI Schemes
No.
Employee Employer Total
Share Share
1. EPF Contribution 12% 3.67% 15.67%

2. EPS Contribution - 8.33 % 9.49%

(GoI contributes
1.16%)
3. EDLI Contribution - 0.50 % 0.50%
4. EPF Admin. Charges - 0.50% 0.50%

Total 12% 13% 25%

Sections of EPF & MP Act:

 Sec.1(3)a Coverages – Factories

 Sec.1(3)b Coverages – Class of Establishments
 Sec. 1(4) Voluntary Coverage
 Sec. 1(5) Once a Member always a member
 Sec. 2 A Clubbing of establishment
 Sec. 3 Common Provident
 Sec. 4 Power to add to Schedule I
 Sec. 5 Employees’ Provident Funds Scheme
 Sec. 5A Central Board
 Sec. 5AA Executive Committee
Sections of EPF & MP Act:

 Sec. 5B State Board

 Sec. 6 Contributions & Schemes

 Sec. 6A Employees’ Pension Scheme

 Sec. 6C Employees’ Deposit-linked Insurance
Scheme
 Sec. 7 Modification of Scheme
 Sec. 7A Determination of moneys due from
employers
 Sec. 7D Tribunal
 Sec. 7Q Imposing of simple interest
 Sec. 8 Mode of recovery from employers
Sections of EPF & MP Act:

 Sec. 8 A Recovery of moneys by employers and contractors

 Sec. 8 (B to G) Recovery Provisions
 Sec. 9 Fund to be recognized under Act 11 of 1922
 Sec. 10 Protection against attachment
 Sec. 11 Priority of contributions over other
debts
 Sec. 12 Employer not to reduce wages, etc.
 Sec. 13 Inspectors
 Sec. 14 Penalties
 Sec. 14 B Power to recover damages
Sections of EPF & MP Act:

 Sec. 15 Special Provisions relating to existing PF

 Sec. 16 Act not to apply to certain establishments
 Sec. 17 Power to exempt
 Sec. 18 Protection of action taken in good faith
 Sec. 19 Delegation of powers
 Sec. 20 Power of Central Government to give directions
 Sec. 21 Power to make rules
 Sec. 22 Power to remove difficulties
Employees' Provident Funds
Scheme 1952

Advance / Partial
withdrawal allowed
P.F accumulation
for specific purpose
payable with
such as
interest on
construction /
retirement,
purchase of house,
resignation,
illness, higher
retrenchment,
education,
migration or death
marriage and
other contingencies
 26

Pension eligible for live members:

Employees’ • Member Pension: Superannuation/Early

• Member Pension upon disablement
Pension
Pension eligible after death of member:
Scheme • Widow Pension
1995 (EPS) •
•
Children Pension
Orphan Pension
• Disabled Children Pension
• Nominee pension
• Dependent Parent pension

Withdrawal Benefit
 27

Employees’ Deposit Linked

Insurance Scheme 1976 (EDLI)

1 2 3
Lumpsum benefit Maximum Benefit Minimum Benefit under
payable in case of under the EDLI the EDLI Scheme
enhanced to Rs 2.5
death of a PF Scheme enhanced to lakhs (with at least 12
member, while in Rs 7 lakhs months of service)
service
Thank You