The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees’ Provident Funds Act, 1952. The Employees’ Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments. The Act is now referred as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the whole of India. The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees’ Provident Fund,consisting of representatives of Government (Both Central and State), Employers, and Employees.

The Central Board of Trustees administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India. The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 135 locations across the country. The Organization has a well equipped training set up where officers and employees of the Organization as well as Representatives of the Employers and Employees attend sessions for trainings and seminars.The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India (click here)
EPFO Organisation Structure (Annual Report 2015-16)

The Board operates three schemes – EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).

APPLICABILITY OF EPF

REGISTRATION under EPF is compulsory:

• For every factory engaged in industry employing 20 or more employees
• For every other establishment having 20 or more employees during previous year.
• For every employee who is getting less than INR 15000/- per month.

CONTRIBUTION

Every employee who joins any establishment which is covered under EPF scheme has to mandatorily contribute certain percentage of his salary. These contributions have to be made regularly. The Contribution made by an employee is pooled up in the form of saving or investment which is given to the employee at the time of his retirement or he switches his job.

Rate of Contribution for establishment hiring employees 20 or above Employer’s rate of contribution: Employer has to share his contribution at the rate of 12% of Employee’s basic salary plus dearness allowance.

Employee’s rate of contribution: Employer has to share his contribution at the rate of 12% of Employee’s basic salary plus dearness allowance.

Out of total employer’s contribution, it is further bifurcated into 8.33% which is converted to Employees’ Pension Scheme, and remaining 3.67% is converted into EDLI account.

UAN

UAN stand for Universal Account Number which is allotted to employees at the time of registering an employee under EPFO portal. This number is allotted by completing the details such as name, father’s name, aadhar number, Date of birth as per aadhar etc. This UAN can be used by an employee throughout whether he changes his service or establishment.

EPS Pension Facts

1. Full Pension age 58 years
2. Early Pension age stars from 50 years. There will be 4% reduction for each year before 58 years.
3. Member can apply for pension after retirement or after attaining 58 years, whichever is earlier.
4. If member attains 58 years and don’t have 10 year service, will not be eligible for member pension. He can withdraw pension amount.
5. If member retires before 50 year and have > 10 year service, can apply for Scheme Certificate. This can submit after attaining 50 year and will get pension.
6. Out of 3 Schemes of EPFO (EPS, EPF & EDLI), only EPS has retirement age, 58 years.
7. If Member continues working after 58 years, please stop 8.33% pension payment towards EPS (A/c No. 10) and remit the same under EPF (A/c No.1 Employer’s share – ie. 3.67+8.33 = 12%).
8. (EPF & EDLI must be paid till permanent retirement)