Employees Provident Fund & Miscellaneous Provision Act

Employees Provident Fund & Miscellaneous Provision Act

Employee’s Provident Fund (EPF) & Miscellaneous Provision (MP) is a benefit scheme for salaried individuals for their old age after their retirement. It is not only tax saving instrument but it also provides security and stability to the employee and his family as well. The Employees Provident Fund and Miscellaneous Provision Act 1952 apply to the whole India except Jammu & Kashmir.

Employees Provident Fund and Miscellaneous Provisions Act 1952 is stands toEmployee Provident Fund & Miscellaneous Provision Act

-Every establishment which is engaged in any one or more of the industries specified in schedule I of the act or any activity notified by Central Government in the official gazette.

-Any other establishment employing 20 or more persons whom Central Government may, by notification, specify in this behalf.

-Any establishment employing even less than 20 persons can be covered voluntarily under section 1(4) of the act.

Applicability

Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment. The Employees Provident Fund and Miscellaneous Provision Act provides for compulsory contributory fund for the future of an employee after his/her retirement or for his/her dependents in case of the employee’s early death.

-Every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed.

-Every other establishment employing 20 or more persons or class of such establishments that the Central Govt. may notify.

-Any other establishment so notified by the Central Government even if employing less than 20 persons.

Every employee, including the one employed through a contractor ,who is in receipt of wages up to Rs.15,000 p.m. shall be eligible for becoming a member of the fund. The condition of three months continuous service or 60 days of actual work for membership of the scheme has been removed.

The Ministry of Labour and Employment released a draft of the Employees Provident Fund & Miscellaneous Provision Act, 2019. The Bill amends the Employees Provident Fund & Miscellaneous Provision Act, 1952.

  • Change in the definition of basic wages.
  • Increase of fines.
  • Changes related to National Pension System.
  • Limitation for initiation of inquiries.
  • Grant of exemption.
  • Changes in the rate of contribution.