The Employees Provident Fund
The Act seeks to provide retiring benefits to employed person in the private sector. This enactment has been amended several times. In addition there are two Special Provision Acts in 1971 and 1975. The National Provident Fund is established and regulated under this Act. Central Bank functions as the custodian of the Fund while the Labour Department administers the Fund.
1.1 Who should contribute to the Fund?
This Act applies to all employees and employers except where the government is the employer, local government service and local government employees who are not covered by any pension scheme.
1.2 Quantum of Contributions
Every employee and employer, other than those mentioned above, has to contribute to the fund.
Employer- 12% of ‘Total Earnings’
Employee- 8% of ‘Total Earnings’
Total Earnings for the purpose of this Fund constitute wages, salary or fees, cost of living and meal allowances, payments with respect to holidays, commissions and other such forms of remuneration as maybe prescribed.
1.3 Payment of benefits
The Act provides for circumstances under which members of the scheme can claim benefits. In the event of a death of a member EPF benefits shall be payable to the nominee or nominees as previously nominated by members.