EPF & MP Act, 1952

Object and schemes

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 provides for compulsory contributory provident fund, pension and deposit-linked insurance for employees in factories and other establishments. Three schemes sit under it: EPF Scheme 1952, Employees’ Pension Scheme 1995, and Employees’ Deposit Linked Insurance Scheme 1976.

Coverage

• Applies to every establishment which is a factory engaged in any industry specified in Schedule I and employing 20 or more persons.
• Also to any other establishment employing 20 or more persons which the Central Government may notify.
• Once covered, the Act continues to apply even if employment falls below 20 (s.1(5)).
• Voluntary coverage is possible under s.1(4) with majority employee consent.
• Wage ceiling for contribution (statutory) is ₹15,000 per month; establishments may contribute on higher wages by agreement.

Contribution split (standard)

Employee: 12% of basic + DA + retaining allowance. Employer: 12% of the same, of which 8.33% (subject to wage ceiling) goes to EPS and the balance 3.67% to EPF. For establishments with fewer than 20 employees (and some notified categories) the rate is 10%.

Authorities

• Central Board of Trustees (CBT) — tripartite body; administers the Fund.
• Central Provident Fund Commissioner (CPFC) — chief executive of EPFO.
• Additional/Regional/Assistant PF Commissioners — enforcement and inquiries under s.7A.
• Employees’ Provident Fund Appellate Tribunal functions now lie with CGIT-cum-Labour Courts after the Finance Act 2017.
• Section 7A inquiry determines money due from the employer.

Key sections to memorise