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A K BASU
PURPOSE
AN ACT TO PROVIDE FOR THE INSTITUTION OF PROVIDENT FUNDS,PENSION FUND AND DEPOSIT LINKED INSURANCE FUND FOR EMPLOYEES IN FACTORIES AND OTHER ESTABLISHMENTS
COVERAGE
ENACTMENT EFFECTIVE 4TH MARCH 1952 EXTENDS TO THE WHOLE OF INDIA EXCEPT STATE OF JAMMU AND KASHMIR COVERS ALL FACTORIES AND ESTABLISHMENTS EMPLOYING 20 OR MORE EMPLOYEES
DOESNOT COVER
ESTABLISHMENTS REGISTERED UNDER CO-OPERATIVE SOCIETIES ACT ESTABS. OF CENTRAL/STATE GOVTS OR SET UP UNDER CENTRAL/STATE ACT WHOSE EMPOYEES HAVE CONTRIBUTORY PF OR PENSION EMPLOYEE EARNNG PAY ABOVE RS 6500/PER MONTH [STATED IN THE SCHEME]
DEFINITIONS
BASIC WAGES : MEANS ALL EMOLUMENTS EARNED IN CASH BY EMPLOYEE WHILE ON DUTY OR ON PAID LEAVE/HOLIDAY BUT DOESNOT INCLUDE : - DA, HRA, OT, BONUS, COMMISSION, OR SIMILAR ALLOWANCES, CASH VALUE OF FOOD CONCESSIONS, OR PRESENTS
DEFINITIONS [CONTD]
EARNED LEAVE ENCASHMENT IS PART OF BASIC WAGES EMPLOYEE INCLUDES EMPLOYEE ON ROLL, CONTRACT LABOUR AND COMPANY APPRENTICES CASUAL/BADLI WORKERS ARE EMPLOYEES FOR THE PERIOD OF ENGAGEMENT
DEFINITIONS [CONTD]
FACTORY HAS SAME DEFINITION AS FACTORIES ACT WITHOUT THE STIPULATION OF NO. OF WORKERS INDUSTRY AS ADDED IN SCHEDULE I MEMBER IS A MEMBER OF THE PROVIDENT FUND EXEMPTED ESTABLISHMENT ARE ESTBS. EXEMPTED U/S 17 SUPERANNUATION IS AGE 58 YRS
PROVIDENT FUND
CENTRAL GOVT. FRAMED A SCHEME CALLED EMPLOYEES PROVIDENT FUND SCHEME 1952 TO IMPLEMENT THE LAW [ SECTION 5 ] THE FUND IS ADMINISTERED BY THE CENTRAL BOARD OF TRUSTEES CONSTITUTED BY THE CENTRAL GOVT. [SECTION 5A ]
PF SCHEME [CONTD]
SCHEME LAYS DOWN ELABORATE RULES FOR TRUSTEES,CENTRAL AND REGIONAL PF COMMISSIONERS MEMBERSHIP OF PF FROM DATE OF EMPLOYMENT IF HE IS COVERED MEMBERSHIP I FUND TO CONTINUE TILL MEMBER WITHDRAWS UNDER PARA 69
PF SCHEME [CONTD]
WITHDRAWAL ON : - RETIREMENT FROM SERVICE AFTER ATTAINING 55 YRS AGE - RETIREMENT DUE TO PERMANENT INCAPACITY FOR WORK - MIGRATION FROM INDIA - TERMINATION FOR RETRENCHMENT
PF SCHEME [CONTD]
WITHDRAWAL ON : - VOLUNTARY RETIREMENT AS PER AGREED SCHEME - TRANSFER FROM A COVERED TO A NON COVERED ESTB. - NON EMPLOYMENT FOR TWO MONTHS AFTER SEPARATION
PF SCHEME [CONTD]
CONTRIBUTION PAYABLE TO FUND WITHIN 15 DAYS FROM CLOSE OF MONTH NOMINATION FROM WITHIN THE DEFINED FAMILY PROVISIONS FOR VARIOUS LOANS AND WITHDRAWALS PARAS 68B TO 68-O FINANCING MEMBERS LIC POLICY
PF SCHEME [CONTD]
PERMANENT WITHDRAWALS ARE : - PURCHASE OF HOUSE/FLAT - PURCHASE OF LAND FOR CON STRUCTION OF A HOUSE - REPAYMENT OF A HOUSING LOAN
PF SCHEME [CONTD]
NON RECOVERABLE ADVANCES : - FACTORY CLOSURE FOR MORE THAN 15 DAYS - NON-RECEIPT OF WAGES MORE THAN 2 MONTHS - CONTINUING LITIGATION CHALLENGING DISCHARGE,DIS MISSAL OR RETRENCHMENT
PF SCHEME [CONTD]
NON RECOVERABLE ADVANCES : - MAJOR MEDICAL TREATMENT FOR SELF OR FAMILY MEMBERS - MARRIAGE OR POST MATRIC EDUCATION FOR CHILDREN - DAMAGE REPAIR TO PROPERTY CAUSED BY NATURAL CALAMITY OR RIOT - EQUIPMENT TO PHYSICALLY HANDICAP
PF SCHEME [CONTD]
ACCUMULATION OF DECEASED MEMBER TO BE PAID TO NOMINEE[S] OR, IN CASE OF NO NOMINATION, IN EQUAL SHARE TO FAMILY EXCEPT - SONS WHO HAVE BECOME MAJOR - SONS OF DECEASED SON WHO HAVE ATTAINED MAJORITY - MARRIED DAUGHTERS WHOSE HUSBANDS ARE ALIVE - MARRIED WIVES OF DECEASED SON
PROBLEMS ENCOUNTERED
MEMBERSHIP AND ADMINISTERING PF OF CONTRACT LABOUR TRANSFER OF ACCUMULATIONS, ESPECIALLY OF CONTRACT LABOUR ISSUES OF NOMINATION EARNINGS OF EXEMPTED FUND