Inventory Management

							             EMPLOYEES
          PROVIDENT FUNDS
              AND MISC.
           PROVISIONS ACT
                1952
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Introduction


        SCHEMES UNDER THE ACT.
  EMPLOYEES PROVIDENT FUNDS SCHEME,
   1952
  EMPLOYEES DEPOSIT LINKED INSURANCE
   SHEME, 1976
  EMPLOYEES PENSION SCHEME, 1995




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PF SCHEME


APPLICATION:
 To every establishment employing 20 or more
  employees.
Wages:
 basic wages
 dearness allowance and
 retaining allowance, if any



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PF SCHEME


CONTRIBUTIONS:
 EMPLOYEES @ 12%
 EMPLOYER @ 12%
FAMILY:
 In case of Male: wife, children, dependent
  parents and deceased sons widow and children
 In case of Female: Husband, children,
  dependent parents and hus dep. Parents and
  deceased sons widow and children
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PF SCHEME


COVERAGE:
 From day one joining in employment
POWER TO EXEMPT
 Trust Maintenance by Trustees of Orgn.
TRANSFER OF ACCOUNTS:
 On Re-employment from Exempted
  establishment to Un-exempted and visa-versa.



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PF SCHEME

RATE OF INTREST:
 9.5 % P.A.
VOLUNTARY CONTRIBUTION:
 In multiples of Hundreds (Max. limit of one
  month basic+da)
DECLARATION & NOMINATION
 FORM 2
 Distribution of amount
 Fresh nomination on attaining family.
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PF SCHEME


WITHDRAWALS:
 For purchase of a dwelling house/flat or for
  construction of house including purchase of
  site
 Min. Criteria: 5 years of Contributory period.
 Incase of Construction: 24 months/employers &
  employee share together with interest or actual
  cost of const. Whichever is lower


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PF SCHEME


WITHDRAWALS:
 Incase of acquisition of ready built house/flat:
  36 months contributions/employers & employee
  share together with interest or actual cost of
  construction whichever is lower
 No withdrawal is allowed if it is for joint family
  except jointly with spouse.



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PF SCHEME


WITHDRWALS
 Grant of Advances in special cases
 incase factory is locked up or closed down for
  more than 2 months
 Advance for illness
 Hospitalization is lasting for more than one
  month or major surgical operation or suffering
  from TB/ Leprosy etc.

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PF SCHEME


WITHDRWALS
 Grant of Advances for Marriages or post
  matriculation edu of children ( 15% of own share)
 Incase of own marriage or son/daughter/ sister/
  brother or for post matriculation study of children.
 Min criteria: 7 years of contributory period.
 Grant of adv. In abnormal conditions
 Movable /Immovable property has been damaged
  by nature calamity.
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PF SCHEME


WITHDRWALS
 Withdrawal which one year before retirement
 90% of amount standing in his account.
 Circumstances which lead to payable to a member
 On retirement
 On retirement on account of perm disablement
 Immediately before migration
 On Retrenchment.

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 EDLI SCHEME

Obj: For providing life insurance benefits to the
  employees.
Contributions:
 Employer and Govt will contribute @ 0.5% of wages.
(Max wage limit is Rs. 6500/-)
Benefit:
 Equivalent to fund accumulations or 12 months
  average bal or 25000. + 25 % of excess of 25000 with
  limit of RS. 35000/-
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 EPS SCHEME


COMMENCEMENT OF SCHEME:
 w.e.f 16/11/1995
OBJECTIVE: For purpose of providing for
 Superannuation pension
 Retiring Pension
 permanent total disablement pension
 widow or widower’s pension
 children pension/orphan pension

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 EPS SCHEME


ELIGIBILITY FOR PENSION:
 An employee who completed min 10 years
  membership.
 Employees attaining age of 58 yrs and who
  completed 10 yrs.
 On attaining 58 yrs of age, the employers contr. Will
  go to PF account, if he/she continues in emp.
 In case of death, spouse and two children upto age
  of 25 yrs are eligible for pension.
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EPS SCHEME


CONTRIBUTIONS:
 8.33% of employers contribution be diverted
 1.16% of Govt Contribution (max wage:
  Rs.6500)
Pensionable Service:
 Contributions received or receivable
 Service Weight-age of 2 yrs incase of 20 years
  or more pensionable service.

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EPS SCHEME


PENSIONABE SALARY:
 Avg. of 12 months salary
 Non contributory days be excluded
 Max wage limit is RS. 6500/-
Monthly Pension:
 Retirement Pension: 20 yrs or more of service
  on attaining 58 yrs.
 Short Service Pension: 10 -20 yrs service.

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EPS SCHEME


Monthly Pension formula:
  Pensionable serviceX Pensionable salary/70


Options : (Return of Capital)
 90% of pension- nominee will get 100 times as
  lumpsum on death of member
 90% of pension- widow will receive 80% of
  original pension and 90 times of original pension
 87.5% of pension for fixed 20 yeas. 100 times at
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EPS SCHEME


WITHDRAWALS:
 Employees who put in less than 10 yrs service
  are eligible incase not employed elsewhere.
 employee has option to obtain “Scheme
  Certificate” instead of withdrawal
PENSION AT AN EARLY DATE: (@ 3% less for
  every year of short fall of 58 yrs.)
 Emp who put in 10 yrs service and ceased to be
  in employment may opt from 50 yrs of age.
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EPS SCHEME


FORMS:
 FORM 2: To be used for furnishing Nominee
  Details.
 FORM 10C: To be used for claiming Withdrawal
  Benefits
 FORM 10D: To be used for claiming Monthly
  Pension



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EPS SCHEME


DO’S FOR MEMBERS:
 Instructions should be gone through before
  filling the forms.
 Bank Details to be furnished correctly
 Forms be attested by Employer
 Claims should be sent to concerned RPF Office
 Claims/Clarifications routed thr Ex-Employer



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EPS SCHEME


DON’TS FOR MEMBERS:
 Do not close Bank Account
 Don’t approach any middle/consultant for
  settlement of claim.
 Don’t contact any other official other than PRO
 Don’t hand over claim form to any un-authorised
  person.



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      Thank You

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badari narayana
[ybadarinarayana@yahoo.com]

 Dear Rajeev,

   Pls find them here under.
   These were prepared some time back...It may need some
   updation.. like latest amendment in ESI Act enhancing
   wage ceiling from Rs.6500 to Rs. 7500 pm

 Pls note my official mail id also:
 badari.naayana@wepindia.com



 regards
 Badarinarayana




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